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ECL (Ecolab) PE Ratio (TTM) : 34.46 (As of Oct. 31, 2024)


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What is Ecolab PE Ratio (TTM)?

The PE Ratio (TTM), or Price-to-Earnings ratio, or P/E Ratio, is a financial ratio used to compare a company's market price to its Earnings per Share (Diluted). As of today (2024-10-31), Ecolab's share price is $245.73. Ecolab's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Jun. 2024 was $7.13. Therefore, Ecolab's PE Ratio (TTM) for today is 34.46.

Good Sign:

Ecolab Inc stock PE Ratio (=42.38) is close to 1-year low of 39.8


The historical rank and industry rank for Ecolab's PE Ratio (TTM) or its related term are showing as below:

ECL' s PE Ratio (TTM) Range Over the Past 10 Years
Min: 24.92   Med: 36.13   Max: 62.04
Current: 34.46


During the past 13 years, the highest PE Ratio (TTM) of Ecolab was 62.04. The lowest was 24.92. And the median was 36.13.


ECL's PE Ratio (TTM) is ranked worse than
72.05% of 1145 companies
in the Chemicals industry
Industry Median: 24.19 vs ECL: 34.46

Ecolab's Earnings per Share (Diluted) for the three months ended in Jun. 2024 was $1.71. Its Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Jun. 2024 was $7.13.

As of today (2024-10-31), Ecolab's share price is $245.73. Ecolab's EPS without NRI for the trailing twelve months (TTM) ended in Jun. 2024 was $6.40. Therefore, Ecolab's PE Ratio without NRI for today is 38.40.

During the past 13 years, Ecolab's highest PE Ratio without NRI was 59.49. The lowest was 23.42. And the median was 33.17.

Ecolab's EPS without NRI for the three months ended in Jun. 2024 was $1.68. Its EPS without NRI for the trailing twelve months (TTM) ended in Jun. 2024 was $6.40.

During the past 12 months, Ecolab's average EPS without NRI Growth Rate was 30.30% per year. During the past 3 years, the average EPS without NRI Growth Rate was 9.00% per year. During the past 5 years, the average EPS without NRI Growth Rate was 1.20% per year. During the past 10 years, the average EPS without NRI Growth Rate was 2.20% per year.

During the past 13 years, Ecolab's highest 3-Year average EPS without NRI Growth Rate was 39.80% per year. The lowest was -8.80% per year. And the median was 10.50% per year.

Ecolab's EPS (Basic) for the three months ended in Jun. 2024 was $1.72. Its EPS (Basic) for the trailing twelve months (TTM) ended in Jun. 2024 was $7.18.


Ecolab PE Ratio (TTM) Historical Data

The historical data trend for Ecolab's PE Ratio (TTM) can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Ecolab PE Ratio (TTM) Chart

Ecolab Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
PE Ratio (TTM)
Get a 7-Day Free Trial Premium Member Only Premium Member Only 36.21 At Loss 60.00 38.20 41.41

Ecolab Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
PE Ratio (TTM) Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 39.30 41.41 42.76 39.93 At Loss

Competitive Comparison of Ecolab's PE Ratio (TTM)

For the Specialty Chemicals subindustry, Ecolab's PE Ratio (TTM), along with its competitors' market caps and PE Ratio (TTM) data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Ecolab's PE Ratio (TTM) Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Ecolab's PE Ratio (TTM) distribution charts can be found below:

* The bar in red indicates where Ecolab's PE Ratio (TTM) falls into.



Ecolab PE Ratio (TTM) Calculation

The PE Ratio (TTM), or Price-to-Earnings ratio, or P/E Ratio, is a financial ratio used to compare a company's market price to its Earnings per Share (Diluted). It is the most widely used ratio in the valuation of stocks.

Ecolab's PE Ratio (TTM) for today is calculated as

PE Ratio (TTM)=Share Price/Earnings per Share (Diluted) (TTM)
=245.73/7.130
=34.46

Ecolab's Share Price of today is $245.73.
Ecolab's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Jun. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $7.13.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

It can also be calculated from the numbers for the whole company:

PE Ratio (TTM)=Market Cap /Net Income

There are at least three kinds of PE Ratio (TTM)s used by different investors. They are Trailing Twelve Month PE Ratio (TTM) or PE Ratio (TTM) (TTM), Forward PE Ratio, or PE Ratio without NRI. A new PE Ratio (TTM) based on inflation-adjusted normalized PE Ratio (TTM) is called Shiller PE Ratio, after Yale professor Robert Shiller.

In the calculation of PE Ratio (TTM), the earnings per share used are the earnings per share over the past 12 months. For Forward PE Ratio, the earnings are the expected earnings for the next twelve months. In the case of PE Ratio without NRI, the reported earnings less the non-recurring items are used.

For Shiller PE Ratio, the earnings of the past 10 years are inflation-adjusted and averaged. Since it looks at the average over the last 10 years, Shiller PE Ratio is also called PE10.


Ecolab  (NYSE:ECL) PE Ratio (TTM) Explanation

The PE Ratio (TTM) can be viewed as the number of years it takes for the company to earn back the price you pay for the stock. For example, if a company earns $2 a share per year, and the stock is traded at $30, the PE Ratio (TTM) is 15. Therefore it takes 15 years for the company to earn back the $30 you paid for its stock, assuming the earnings stays constant over the next 15 years.

In real business, earnings never stay constant. If a company can grow its earnings, it takes fewer years for the company to earn back the price you pay for the stock. If a company's earnings decline it takes more years. As a shareholder, you want the company to earn back the price you pay as soon as possible. Therefore, lower P/E stocks are more attractive than higher P/E stocks so long as the PE Ratio (TTM) is positive. Also for stocks with the same PE Ratio (TTM), the one with faster growth business is more attractive.

If a company loses money, the PE Ratio (TTM) becomes meaningless.

To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the PE Ratio (TTM) divided by the growth ratio. He thinks a company with a PE Ratio (TTM) equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a PE Ratio (TTM) of 20, instead of a company growing 10% a year with a PE Ratio (TTM) of 10.

Because the PE Ratio (TTM) measures how long it takes to earn back the price you pay, the PE Ratio (TTM) can be applied to the stocks across different industries. That is why it is the one of the most important and widely used indicators for the valuation of stocks.

Similar to the PE Ratio without NRI or PS Ratio or Price-to-Operating-Cash-Flow or Price-to-Free-Cash-Flow , the PE Ratio (TTM) measures the valuation based on the earning power of the company. This is where it is different from the PB Ratio , which measures the valuation based on the company's balance sheet.


Be Aware

Investors need to be aware that the PE Ratio (TTM) can be misleading a lot of times, especially when the underlying business is cyclical and unpredictable. As Peter Lynch pointed out, cyclical businesses have higher profit margins at the peaks of the business cycles. Their earnings are high and PE Ratio (TTM)s are artificially low. It is usually a bad idea to buy a cyclical business when the PE Ratio (TTM) is low. A better ratio to identify the time to buy a cyclical businesses is the PS Ratio .

PE Ratio (TTM) can also be affected by non-recurring-items such as the sale of part of businesses. This may increase for the current year or quarter dramatically. But it cannot be repeated over and over. Therefore PE Ratio without NRI is a more accurate indication of valuation than PE Ratio (TTM).


Ecolab PE Ratio (TTM) Related Terms

Thank you for viewing the detailed overview of Ecolab's PE Ratio (TTM) provided by GuruFocus.com. Please click on the following links to see related term pages.


Ecolab Business Description

Address
1 Ecolab Place, Saint Paul, MN, USA, 55102
Ecolab produces and markets cleaning and sanitation products for the industrial manufacturing, hospitality, healthcare, and life sciences markets. The firm is the global market share leader in this category with a wide array of products and services, including dish and laundry washing systems, pest control, and infection control products. Additionally, Ecolab sells customized water management solutions across its end markets. The company has a strong hold on the US market and is growing its presence abroad.
Executives
Victoria Reich director UNITED STATIONERS SUPPLY CO, ONE PARKWAY NORTH BLVD SUITE 100, LAKE FOREST IL 60045
Gregory B Cook officer: EVP & PRES - INST GROUP 1 ECOLAB PLACE, SAINT PAUL MN 55102
Nicholas J. Alfano officer: EVP & PRES - GLOBAL INDUSTRIAL 1 ECOLAB PLACE, SAINT PAUL MN 55102
Laurie M Marsh officer: Senior VP - Human Resources 1601 W. DIEHL ROAD, NAPERVILLE IL 60563
David Maclennan director 14701 CHARLSON ROAD, EDEN PRAIRIE MN 55347
Arthur J Higgins director C/O ZIMMER, INC., P.O. BOX 708, WARSAW IN 46580
Jennifer J Bradway officer: SVP & CORPORATE CONTROLLER 1 ECOLAB PLACE, ST. PAUL MN 55102
Angela M Busch officer: SVP - Corporate Development 1 ECOLAB PLACE, SAINT PAUL MN 55102
Nicolas A Granucci officer: EVP & PRES - GLOBAL PEST 1 ECOLAB PLACE, SAINT PAUL MN 55102
Larry L Berger officer: Chief Technical Officer & SVP 1 ECOLAB PLACE, SAINT PAUL MN 55102
Gail Peterson officer: SVP - Global Mktg & Comms 1 ECOLAB PLACE, SAINT PAUL MN 55102
Christophe Beck officer: Executive V.P., Instit. NA 370 WABASHA STREET NORTH, SAINT PAUL MN 55102
Eric Mark Green director 530 HERMAN O. WEST DRIVE, EXTON PA 19341
Gates William H Iii 10 percent owner 2365 CARILLON POINT, KIRKLAND WA 98033
Michael C. Mccormick officer: Ex.VP, GC & Asst. Secretary 1 ECOLAB PLACE, ST. PAUL MN 55102