Ecolab Inc. (ECL) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-36.3%

$196.66

vs $308.79 price

Levered DCF

$163.50

After debt service

Piotroski score

5 / 9

Average

Altman Z-score

3.98

Safe zone

Rating

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	35.81×	31.54×	41.15×	38.01×	59.39×	-51.51×	35.67×	29.77×
P/B	7.61×	7.61×	7.03×	5.74×	9.3×	10.07×	6.4×	5.31×
P/S	4.62×	4.23×	3.69×	2.93×	5.27×	5.27×	4.43×	2.9×
EV / EBITDA	24.02×	19.15×	21.21×	19.62×	30.71×	30.6×	22.67×	16.39×
Gross margin	44.5%	43.5%	40.3%	38.2%	41.0%	41.5%	44.0%	41.3%
Operating margin	18.1%	16.6%	14.1%	11.3%	13.2%	14.5%	15.2%	13.5%
Net margin	12.9%	13.4%	9.0%	7.7%	8.9%	-10.2%	12.4%	9.7%
Current ratio	1.08×	1.26×	1.3×	1.3×	1.32×	1.75×	1.33×	1.27×
Debt / equity	0.97×	0.95×	1.09×	1.25×	1.27×	1.15×	0.79×	0.88×
Interest coverage	12.08×	7.72×	6.09×	6.1×	7.79×	6.95×	7.89×	7.23×
Dividend yield	1.0%	1.0%	1.1%	1.5%	0.8%	0.9%	1.0%	1.2%
Payout ratio	36.3%	31.4%	45.0%	55.2%	50.1%	-46.5%	35.5%	34.7%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	21.2%	24.1%	17.1%	15.1%	15.6%	-19.5%	17.9%	17.9%
Return on invested capital	11.9%	11.8%	9.4%	7.4%	7.5%	9.5%	9.0%	9.2%
Return on assets	8.4%	9.4%	6.3%	5.1%	5.3%	-6.6%	7.5%	7.1%
Free cash flow yield	2.6%	2.7%	2.9%	2.6%	2.1%	2.2%	3.0%	3.4%
Earnings yield	2.8%	3.2%	2.4%	2.6%	1.7%	-1.9%	2.8%	3.4%
Enterprise value	$83.2B	$73.6B	$64.3B	$49.9B	$76B	$67.9B	$62.3B	$49.5B
Net debt / EBITDA	2.54×	1.83×	2.58×	3.31×	3.56×	2.64×	2.44×	2.3×
Cash conversion cycle (days)	58	56	69	77	81	82	73	79