ECL Valuation

Ecolab Inc

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281.490

+1.41(0.503%)1D

Overview
Forecast
Valuation
Earnings

ECL Relative Valuation

ECL's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, ECL is overvalued; if below, it's undervalued.

Historical Valuation

Ecolab Inc (ECL) is now in the Fair zone, suggesting that its current forward PE ratio of 35.17 is considered Fairly compared with the five-year average of 35.64. The fair price of Ecolab Inc (ECL) is between 250.37 to 317.40 according to relative valuation methord.

Relative Value

Fair Zone

250.37-317.40

Current Price：281.99

Fair

35.20

Trailing

Forward

21.39

EV/EBITDA

Ecolab Inc. (ECL) has a current EV/EBITDA of 21.39. The 5-year average EV/EBITDA is 20.58. The thresholds are as follows: Strongly Undervalued below 15.61, Undervalued between 15.61 and 18.10, Fairly Valued between 23.06 and 18.10, Overvalued between 23.06 and 25.54, and Strongly Overvalued above 25.54. The current Forward EV/EBITDA of 21.39 falls within the Historic Trend Line -Fairly Valued range.

28.47

EV/EBIT

Ecolab Inc. (ECL) has a current EV/EBIT of 28.47. The 5-year average EV/EBIT is 29.28. The thresholds are as follows: Strongly Undervalued below 21.96, Undervalued between 21.96 and 25.62, Fairly Valued between 32.93 and 25.62, Overvalued between 32.93 and 36.59, and Strongly Overvalued above 36.59. The current Forward EV/EBIT of 28.47 falls within the Historic Trend Line -Fairly Valued range.

4.83

Ecolab Inc. (ECL) has a current PS of 4.83. The 5-year average PS is 3.99. The thresholds are as follows: Strongly Undervalued below 2.53, Undervalued between 2.53 and 3.26, Fairly Valued between 4.72 and 3.26, Overvalued between 4.72 and 5.45, and Strongly Overvalued above 5.45. The current Forward PS of 4.83 falls within the Overvalued range.

26.53

P/OCF

Ecolab Inc. (ECL) has a current P/OCF of 26.53. The 5-year average P/OCF is 24.92. The thresholds are as follows: Strongly Undervalued below 14.96, Undervalued between 14.96 and 19.94, Fairly Valued between 29.90 and 19.94, Overvalued between 29.90 and 34.88, and Strongly Overvalued above 34.88. The current Forward P/OCF of 26.53 falls within the Historic Trend Line -Fairly Valued range.

40.69

P/FCF

Ecolab Inc. (ECL) has a current P/FCF of 40.69. The 5-year average P/FCF is 36.07. The thresholds are as follows: Strongly Undervalued below 22.28, Undervalued between 22.28 and 29.17, Fairly Valued between 42.96 and 29.17, Overvalued between 42.96 and 49.85, and Strongly Overvalued above 49.85. The current Forward P/FCF of 40.69 falls within the Historic Trend Line -Fairly Valued range.

Ecolab Inc (ECL) has a current Price-to-Book (P/B) ratio of 8.55. Compared to its 3-year average P/B ratio of 7.35 , the current P/B ratio is approximately 16.29% higher. Relative to its 5-year average P/B ratio of 7.94, the current P/B ratio is about 7.60% higher. Ecolab Inc (ECL) has a Forward Free Cash Flow (FCF) yield of approximately 1.98%. Compared to its 3-year average FCF yield of 2.55%, the current FCF yield is approximately -22.49% lower. Relative to its 5-year average FCF yield of 2.49% , the current FCF yield is about -20.69% lower.

8.55

P/B

Median3y

7.35

Median5y

7.94

1.98

FCF Yield

Median3y

2.55

Median5y

2.49

Competitors Valuation Multiple

The average P/S ratio for ECL's competitors is 2.38, providing a benchmark for relative valuation. Ecolab Inc Corp (ECL) exhibits a P/S ratio of 4.83, which is 102.97% above the industry average. Given its robust revenue growth of 0.99%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Air Products and Chemicals Inc

LyondellBasell Industries NV

Performance Decomposition

Market capitalization of ECL increased by 10.62% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 12.42 to 13.13.

The secondary factor is the P/E Change, contributed 3.91%to the performance.

Overall, the performance of ECL in the past 1 year is driven by Margin Expansion. Which is more sustainable.

0.99%

3.99B → 4.03B

Revenue Growth

5.72%

12.42 → 13.13

Margin Expansion

3.91%

36.15 → 37.56

P/E Change

10.62%