Ecolab Valuation

Is ECL undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of ECL when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ECL ($232.63) is trading above our estimate of fair value ($167.72)

Significantly Below Fair Value: ECL is trading above our estimate of fair value.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for ECL?

Other financial metrics that can be useful for relative valuation.

ECL key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue4.8x
Enterprise Value/EBITDA22.6x
PEG Ratio3.4x

Price to Earnings Ratio vs Peers

How does ECL's PE Ratio compare to its peers?

The above table shows the PE ratio for ECL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average36.1x
SHW Sherwin-Williams
33x7.4%US$80.2b
PPG PPG Industries
22.6x8.3%US$31.8b
DD DuPont de Nemours
80.3x25.6%US$32.7b
CE Celanese
8.5x-4.1%US$17.3b
ECL Ecolab
42.8x12.5%US$66.5b

Price-To-Earnings vs Peers: ECL is expensive based on its Price-To-Earnings Ratio (42.8x) compared to the peer average (36.1x).


Price to Earnings Ratio vs Industry

How does ECL's PE Ratio compare vs other companies in the US Chemicals Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a17.0%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a17.0%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: ECL is expensive based on its Price-To-Earnings Ratio (42.8x) compared to the US Chemicals industry average (26.2x).


Price to Earnings Ratio vs Fair Ratio

What is ECL's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ECL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio42.8x
Fair PE Ratio25x

Price-To-Earnings vs Fair Ratio: ECL is expensive based on its Price-To-Earnings Ratio (42.8x) compared to the estimated Fair Price-To-Earnings Ratio (25x).


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst ECL forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$232.63
US$240.92
+3.6%
7.2%US$269.00US$200.00n/a21
May ’25US$224.98
US$236.19
+5.0%
9.5%US$269.00US$180.00n/a22
Apr ’25US$227.93
US$224.70
-1.4%
7.9%US$260.00US$180.00n/a20
Mar ’25US$225.51
US$226.70
+0.5%
7.7%US$260.00US$180.00n/a20
Feb ’25US$200.03
US$205.36
+2.7%
8.4%US$240.00US$180.00n/a21
Jan ’25US$198.35
US$200.35
+1.0%
7.5%US$240.00US$180.00n/a22
Dec ’24US$192.40
US$197.07
+2.4%
5.9%US$215.00US$180.00n/a22
Nov ’24US$167.21
US$195.65
+17.0%
5.6%US$215.00US$180.00n/a21
Oct ’24US$169.40
US$198.46
+17.2%
5.4%US$220.00US$180.00n/a21
Sep ’24US$182.70
US$198.16
+8.5%
6.3%US$220.00US$170.00n/a22
Aug ’24US$185.17
US$191.33
+3.3%
8.1%US$213.00US$165.00n/a21
Jul ’24US$186.69
US$182.95
-2.0%
7.0%US$213.00US$163.00n/a22
Jun ’24US$169.12
US$183.05
+8.2%
7.2%US$213.00US$163.00n/a21
May ’24US$168.78
US$172.38
+2.1%
8.2%US$210.00US$145.00US$224.9821
Apr ’24US$165.53
US$172.33
+4.1%
7.9%US$210.00US$145.00US$227.9321
Mar ’24US$158.52
US$171.68
+8.3%
7.9%US$210.00US$145.00US$225.5122
Feb ’24US$155.73
US$164.57
+5.7%
10.0%US$210.00US$135.00US$200.0321
Jan ’24US$145.56
US$164.05
+12.7%
10.3%US$210.00US$135.00US$198.3520
Dec ’23US$151.94
US$162.15
+6.7%
11.4%US$210.00US$135.00US$192.4020
Nov ’23US$142.98
US$172.55
+20.7%
9.6%US$210.00US$140.00US$167.2120
Oct ’23US$144.42
US$182.53
+26.4%
5.9%US$215.00US$168.00US$169.4019
Sep ’23US$162.40
US$182.22
+12.2%
6.1%US$215.00US$168.00US$182.7018
Aug ’23US$167.05
US$182.78
+9.4%
6.4%US$215.00US$168.00US$185.1718
Jul ’23US$157.67
US$193.71
+22.9%
6.4%US$225.00US$170.00US$186.6917
Jun ’23US$162.87
US$194.12
+19.2%
6.3%US$225.00US$170.00US$169.1217
May ’23US$169.34
US$196.18
+15.8%
6.2%US$225.00US$170.00US$168.7817

Analyst Forecast: Target price is less than 20% higher than the current share price.


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