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What do the Fundamentals Predict for Ecolab Inc. (ECL) Stock?

Thursday, January 20, 2022 11:55 AM | InvestorsObserver Analysts
What do the Fundamentals Predict for Ecolab Inc. (ECL) Stock?

Ecolab Inc. (ECL) receives a weak valuation ranking of 33 from InvestorsObserver data analysis. The proprietary ranking system focuses on the underlying health of a company through analysis of its stock price, earnings, and growth rate. ECL has a better value than 33% of stocks based on these valuation analytics. Investors primarily focused on buy-and-hold strategies will find the valuation ranking relevant to their goals when making investment decisions.

Valuation Rank - 33
ECL gets a 33 Valuation Rank today. Find out what this means to you and get the rest of the rankings on ECL!

Metrics Analysis

ECL has a trailing twelve month Price to Earnings (PE) ratio of 54.9 which places it above the histroical average of roughly 15. ECL is currently trading at a poor value due to investors paying more than what the stock is worth in relation to its earnings. ECL's trailing-12-month earnings per share (EPS) of 3.91 does not justify its share price in the market. Trailing PE ratios do not factor in the company's projected growth rate, thus, some firms will have high PE ratios caused by high growth recruiting more investors even if the underlying company has produced low earnings so far. ECL currently has a 12-month-forward-PE-to-Growth (PEG) ratio of 2.84. The market is currently overvaluing ECL in relation to its projected growth due to the PEG ratio being above the fair market value of 1. ECL's PEG comes from its forward price to earnings ratio being divided by its growth rate. Because PEG ratios include more fundamentals of a company's overall health with additional focus on the future, they are one of the most used valuation metrics by analysts.


ECL' has a weak valuation at its current share price on account of a overvalued PEG ratio despite strong growth. ECL's PE and PEG are worse than the market average leading to a below average valuation score. Click Here to get the full Report on Ecolab Inc. (ECL) stock.

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