How newly minted billionaire Selena Gomez makes and spends her money

Rare Beauty is the main factor in Gomez’s wealth.

Gomez may be best known as an actor and musician, but the bulk of her fortune — more than 80%, according to Bloomberg’s estimates —comes from her beauty brand, Rare Beauty. The publication assumes Gomez owns a conservative 51% of the business — the brand has only two known investors— which it values at over $2 billion, confirming an earlier report from the Business of Fashion, which pegged its value at a similar number.

While an analysis of reported revenues — between $300 million and $350 million — and current price-to-sales ratios for public beauty companies like Coty and L’Oréal may peg the value of the brand slightly lower, the momentum of the company and its room for growth — it’s currently only sold at Sephora and online — boost its appeal.

“I was not surprised by the price tag, as it’s a healthy brand with loved products,” Anncy Rowe, a beauty industry expert, told Business Insider earlier this year in response to the floated $2 billion figure.

Launched in 2020, the cosmetics line has reached heights that few other celebrity brands have. While many struggling A-list-backed companies lean too heavily on fans of the talent, Rare Beauty has become a known entity in itself — akin to Rihanna’s Fenty Beauty — growing beyond just “Selenators.”

The brand’s success has been discussed on the earnings calls of retailer Kohl’s, where it’s available at its Sephora displays, and manufacturer Elementis, and it has multiple products among Sephora’s best sellers, including cult favorites like a liquid blush.

The brand has been particularly successful on social media, which Gomez has also dominated. She’s been one of the most followed people on Instagram for years.

Rare Beauty’s online popularity “gives an indication of its value on the street today,” Jeffrey Ten, a beauty industry veteran, told BI earlier this year. “Makeup brands are driven by social media. What goes on social media sells in the stores — it’s black and white.”

Earlier this year, reports swirled that Gomez was looking to sell the brand — and officially cash out on the value she has built while the products are still hot.