Ecolab's integrated solutions and on-site service create deep customer dependencies. Switching costs are high due to specialized equipment and training.

↑Brand Reputation & Trust

The Ecolab brand is synonymous with hygiene and safety in critical industries. This trust is built over decades and difficult for competitors to replicate.

↑Proprietary Technology & Data

Investments in digital platforms and data analytics provide unique insights for customers. This enhances efficiency and compliance, creating a technological advantage.

INVESTMENT RISKS

↓Intensifying Competition

While moats exist, the specialty chemicals sector sees new entrants and aggressive pricing from established players. This can pressure margins.

↓Raw Material Cost Volatility

Fluctuations in the cost of key raw materials can impact profitability. Ecolab's ability to pass these costs on is not always guaranteed.

↓Regulatory & Environmental Changes

Evolving environmental regulations and product compliance requirements can necessitate costly adjustments. Non-compliance carries significant penalties.

Base case

ECL base case PE valuation

A base case PE valuation for ECL estimates a fair value of about $373.93 per share, against a current price of $265.41. The model assumes 14.7% annual earnings growth, a 36x target PE multiple, and a 10% discount rate.

Intrinsic Value

$373.93

Margin of safety

+29.0%

Expected annual return

+7.1%

Base case assumptions: 14.7% annual earnings growth, 36x target PE, 10% discount rate, 5 year projection. Data as of 2026-06-12.

This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.

Customize the ECL PE valuation

Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Ecolab Inc. respond.

Open PE Calculator for ECL

Or try DCF Valuation for ECL →

Company Overview

Ecolab Inc. delivers essential water, hygiene, and infection prevention products and services to clients across the United States and globally. The company organizes its operations into several key segments: Global Industrial, Global Institutional & Specialty, Global Healthcare & Life Sciences, and an "Other" segment. Through its Global Industrial division, Ecolab furnishes a range of water treatment, process applications, and cleaning and sanitizing solutions. These offerings cater to a diverse array of sectors including manufacturing, food and beverage processing, transportation, chemical production, metals and mining, power generation, pulp and paper, commercial laundries, and the petroleum, refining, and petrochemical industries. The Global Institutional & Specialty segment focuses on delivering specialized cleaning and sanitizing products primarily to the foodservice, hospitality, lodging, government and education, and retail sectors. Ecolab's Global Healthcare & Life Sciences segment addresses the needs of the healthcare, personal care, and pharmaceutical industries. It supplies specialized cleaning and sanitizing products, encompassing infection prevention, surgical solutions, and comprehensive cleaning and contamination control, marketed under brand names like Ecolab, Microtek, and Anios. Within the "Other" segment, Ecolab provides pest elimination services. These services aim to detect, eliminate, and prevent pests, including rodents and insects, for various clients such as restaurants, food and beverage processors, educational and healthcare institutions, hotels, quick service restaurants, grocery stores, and other commercial and institutional entities. This segment additionally furnishes colloidal silica, used for binding and polishing applications in the semiconductor, catalyst, aerospace component manufacturing, and chemical sectors. Furthermore, it delivers products and services for comprehensive wash process management, featuring custom-designed programs, premium products, dispensing equipment, water and energy conservation, and real-time data management. Ecolab distributes its offerings via its field sales and corporate account teams, as well as through a network of distributors and dealers. Established in 1923, the company maintains its headquarters in Saint Paul, Minnesota.

Financial Metrics — ECL PE Stock Valuation Data

PE Ratio (TTM)

35.5x

PEG Ratio

87.79

Earnings Yield

2.81%

ROE (TTM)

21.7%

Revenue/Share (TTM)

$58.34

Dividend Yield

1.04%

Debt/Equity

0.91x

Frequently Asked Questions

What is the PE ratio of ECL?

The trailing twelve-month PE ratio of ECL reflects how much investors pay per dollar of Ecolab Inc.'s earnings. This metric is most useful when compared to Chemicals - Specialty peers and the company's own historical range.

Is ECL overvalued based on PE ratio?

ECL's PE of 35.5x combined with a PEG ratio of 87.79 provides a growth-adjusted perspective. A PEG above 2.0 suggests ECL may be richly valued even accounting for growth. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Chemicals - Specialty, a DCF analysis may be more appropriate.

How do I value ECL stock using PE ratio?

To value Ecolab Inc. using PE: (1) Compare the current PE (35.5x) against the Chemicals - Specialty median to assess relative pricing, (2) check the PEG ratio (87.79) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.

What is the PEG ratio of ECL?

ECL's PEG ratio is 87.79, calculated by dividing the PE ratio (35.5x) by the expected earnings growth rate. A PEG above 2.0 often signals the stock is priced aggressively relative to its growth trajectory. Note that PEG accuracy depends on the reliability of growth estimates.

Should I use PE ratio or DCF for ECL stock valuation?

PE ratio gives a quick relative read — how ECL is priced versus Chemicals - Specialty peers. DCF provides an absolute value based on projected free cash flows. For ECL, with a strong ROE of 21.7%, both methods are worth using — PE for a market-relative check, DCF to stress-test whether fundamentals justify the price. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.

Learn More

See ECL DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
PE Methodology — Step-by-step guide to PE ratio stock valuation
DCF Methodology — Guide to discounted cash flow analysis
PE Ratio — Understanding the price-to-earnings ratio
Intrinsic Value — How to evaluate stock fair value

Related PE Valuations

All Basic Materials valuations

LINLinde APDAir Products SHWSherwin-Williams DOWDow DDDuPont PPGPPG Industries IFFIFF CECelanese

P/E and DCF value ECL with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.

Price as of 2026-06-12. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.

This is an estimate, not investment advice.