Ecolab Inc.

NYSE:ECL Stock Report

Market Cap: US$69.2b

Ecolab Valuation

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

Valuation Score

2/6

Valuation Score 2/6

  • 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 ($241.77) is trading below our estimate of fair value ($275.39)

Significantly Below Fair Value: ECL is trading below fair value, but not by a significant amount.

Key Valuation Metric

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

Key metric: As ECL is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for ECL. This is calculated by dividing ECL's market cap by their current earnings.
What is ECL's PE Ratio?
PE Ratio33.5x
EarningsUS$2.04b
Market CapUS$69.18b

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 Average37.7x
SHW Sherwin-Williams
36.5x8.8%US$93.7b
DD DuPont de Nemours
67.3x25.2%US$34.0b
PPG PPG Industries
18.9x7.8%US$28.1b
RPM RPM International
28.3x10.9%US$17.4b
ECL Ecolab
33.5x6.6%US$69.2b

Price-To-Earnings vs Peers: ECL is good value based on its Price-To-Earnings Ratio (33.5x) compared to the peer average (37.7x).

Price to Earnings Ratio vs Industry

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

7 CompaniesPrice / EarningsEstimated GrowthMarket Cap
FFHL Fuwei Films (Holdings)
2.8xn/aUS$27.11m
BSLK Bolt Projects Holdings
0.06xn/aUS$9.40m
BON Bon Natural Life
2.4xn/aUS$5.36m
GSPI Green Star Products
1.7xn/aUS$1.49m
ECL 33.5xIndustry Avg. 23.2xNo. of Companies7PE01224364860+
7 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: ECL is expensive based on its Price-To-Earnings Ratio (33.5x) compared to the US Chemicals industry average (23.2x).

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 Ratio33.5x
Fair PE Ratio20.4x

Price-To-Earnings vs Fair Ratio: ECL is expensive based on its Price-To-Earnings Ratio (33.5x) compared to the estimated Fair Price-To-Earnings Ratio (20.4x).

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$241.77
US$274.62
+13.6%
9.9%US$310.00US$215.00n/a21
Nov ’25US$244.57
US$272.72
+11.5%
9.8%US$310.00US$215.00n/a21
Oct ’25US$253.55
US$258.01
+1.8%
10.0%US$306.00US$215.00n/a21
Sep ’25US$253.18
US$253.73
+0.2%
8.0%US$291.00US$215.00n/a21
Aug ’25US$240.24
US$250.63
+4.3%
9.6%US$291.00US$200.00n/a21
Jul ’25US$235.50
US$241.44
+2.5%
7.1%US$270.00US$200.00n/a21
Jun ’25US$232.20
US$241.44
+4.0%
7.1%US$270.00US$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$180.00US$244.5721
Oct ’24US$169.40
US$198.46
+17.2%
5.4%US$220.00US$180.00US$253.5521
Sep ’24US$182.70
US$198.16
+8.5%
6.3%US$220.00US$170.00US$253.1822
Aug ’24US$185.17
US$191.33
+3.3%
8.1%US$213.00US$165.00US$240.2421
Jul ’24US$186.69
US$182.95
-2.0%
7.0%US$213.00US$163.00US$235.5022
Jun ’24US$169.12
US$183.05
+8.2%
7.2%US$213.00US$163.00US$232.2021
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

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

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