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 Undervalued zone, suggesting that its current forward PE ratio of 32.15 is considered Undervalued compared with the five-year average of 35.13. The fair price of Ecolab Inc (ECL) is between 283.40 to 349.37 according to relative valuation methord. Compared to the current price of 264.42 USD , Ecolab Inc is Undervalued By 6.7%.
Relative Value
Fair Zone
283.40-349.37
Current Price：264.42
6.7%
Undervalued
32.15
PE
1Y
3Y
5Y
Trailing
Forward
19.54
EV/EBITDA
Ecolab Inc. (ECL) has a current EV/EBITDA of 19.54. The 5-year average EV/EBITDA is 20.38. The thresholds are as follows: Strongly Undervalued below 15.65, Undervalued between 15.65 and 18.01, Fairly Valued between 22.74 and 18.01, Overvalued between 22.74 and 25.10, and Strongly Overvalued above 25.10. The current Forward EV/EBITDA of 19.54 falls within the Historic Trend Line -Fairly Valued range.
26.24
EV/EBIT
Ecolab Inc. (ECL) has a current EV/EBIT of 26.24. The 5-year average EV/EBIT is 28.87. The thresholds are as follows: Strongly Undervalued below 21.86, Undervalued between 21.86 and 25.36, Fairly Valued between 32.38 and 25.36, Overvalued between 32.38 and 35.88, and Strongly Overvalued above 35.88. The current Forward EV/EBIT of 26.24 falls within the Historic Trend Line -Fairly Valued range.
4.49
PS
Ecolab Inc. (ECL) has a current PS of 4.49. 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 4.71 and 3.26, Overvalued between 4.71 and 5.44, and Strongly Overvalued above 5.44. The current Forward PS of 4.49 falls within the Historic Trend Line -Fairly Valued range.
23.21
P/OCF
Ecolab Inc. (ECL) has a current P/OCF of 23.21. The 5-year average P/OCF is 24.30. The thresholds are as follows: Strongly Undervalued below 15.64, Undervalued between 15.64 and 19.97, Fairly Valued between 28.62 and 19.97, Overvalued between 28.62 and 32.95, and Strongly Overvalued above 32.95. The current Forward P/OCF of 23.21 falls within the Historic Trend Line -Fairly Valued range.
34.65
P/FCF
Ecolab Inc. (ECL) has a current P/FCF of 34.65. The 5-year average P/FCF is 35.74. The thresholds are as follows: Strongly Undervalued below 22.26, Undervalued between 22.26 and 29.00, Fairly Valued between 42.48 and 29.00, Overvalued between 42.48 and 49.22, and Strongly Overvalued above 49.22. The current Forward P/FCF of 34.65 falls within the Historic Trend Line -Fairly Valued range.
Ecolab Inc (ECL) has a current Price-to-Book (P/B) ratio of 7.71. Compared to its 3-year average P/B ratio of 7.52 , the current P/B ratio is approximately 2.49% higher. Relative to its 5-year average P/B ratio of 7.83, the current P/B ratio is about -1.58% higher. Ecolab Inc (ECL) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 2.56%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 2.47% , the current FCF yield is about -100.00% lower.
7.71
P/B
Median3y
7.52
Median5y
7.83
2.07
FCF Yield
Median3y
2.56
Median5y
2.47
Competitors Valuation Multiple
The average P/S ratio for ECL's competitors is , providing a benchmark for relative valuation. Ecolab Inc Corp (ECL) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of 4.16%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of ECL increased by 12.85% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 28.77 to 38.05.
The secondary factor is the Revenue Growth, contributed 4.16%to the performance.
Overall, the performance of ECL in the past 1 year is driven by P/E Change. Which is more unsustainable.
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