Ecolab Inc. (ECL) Stock Valuation — PE Analysis
Chemicals - Specialty · NYSE
Current Price
$292.41
PE Ratio (TTM)
39.5x
Intrinsic Value
$276.78
-5.6% margin of safety
COMPETITIVE MOAT
↑Sticky Customer Contracts
Ecolab's sanitation and pest control contracts are essential services. Customers renew them regardless of economic conditions, creating recurring revenue and high switching costs.
↑Scale and Data Advantage
Extensive operational scale and data collected from millions of customer sites provide deep insights. This allows for optimized solutions and a competitive edge in efficiency.
↑Brand Reputation and Trust
Ecolab is a trusted partner for critical hygiene and safety needs. This strong brand recognition fosters customer loyalty and commands premium pricing.
INVESTMENT RISKS
↓Regulatory Changes
Evolving environmental and safety regulations could increase compliance costs or necessitate significant product and service adjustments.
↓Input Cost Volatility
Fluctuations in the cost of raw materials and energy can impact profitability if not effectively passed on to customers.
↓Competition from Niche Players
Smaller, specialized competitors may offer targeted solutions at lower price points, chipping away at market share in specific segments.
Base case
ECL base case PE valuation
A base case PE valuation for ECL estimates a fair value of about $276.78 per share, against a current price of $292.41. The model assumes 6.0% annual earnings growth, a 39.36x target PE multiple, and a 10% discount rate.
Intrinsic Value
$276.78
Margin of safety
-5.6%
Expected annual return
-1.1%
Base case assumptions: 6.0% annual earnings growth, 39.36x target PE, 10% discount rate, 5 year projection. Data as of 2026-10-28.
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 ECLCompany Overview
Ecolab Inc. provides water, hygiene, and infection prevention solutions and services in the United States and internationally. The company operates through four segments: Global Water, Global Institutional & Specialty, Global Pest Elimination, and Global Life Sciences. The Global Water segment offers water treatment and process applications, and cleaning and sanitizing solutions to manufacturing, food and beverage processing, transportation, chemical, primary metals and mining, power generation, global refining, petrochemical, pulp and paper industries. The Global Institutional & Specialty segment provides cleaning and sanitizing products to the foodservice, healthcare, hospitality, lodging, government, education and retail industries. The Global Pest Elimination segment provides pest elimination services to detect, prevent, and eliminate pests comprising rodents and insects in full-service and quick-service restaurants, food and beverage processors, hotels, grocery operations, and other commercial segments, including education, life sciences, and healthcare. The Global Life Sciences segment provides cleaning and contamination control solutions to pharmaceutical and personal care manufacturers. It offers its products under the Ecolab, Kay, Purolite, and Bioquell brand names. The company sells its products through field sales and corporate account personnel, distributors, and dealers. Ecolab Inc. was founded in 1923 and is headquartered in Saint Paul, Minnesota.
Financial Metrics — ECL PE Stock Valuation Data
PE Ratio (TTM)
39.5x
PEG Ratio
6.74
Earnings Yield
2.54%
ROE (TTM)
20.7%
Revenue/Share (TTM)
$61.96
Dividend Yield
1.00%
Debt/Equity
1.32x
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 39.5x combined with a PEG ratio of 6.74 provides a growth-adjusted perspective. A PEG above 2.0 means the P/E is high relative to the earnings growth rate. 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 (39.5x) against the Chemicals - Specialty median to assess relative pricing, (2) check the PEG ratio (6.74) 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 6.74, calculated by dividing the PE ratio (39.5x) by the expected earnings growth rate. A PEG above 2.0 means the P/E is high relative to the expected earnings growth rate. 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 20.7%, 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 valuationsP/E and DCF value ECL with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-10-28. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.