Price to Book Value (P/BV)
since 2005
Calculation
Ecolab Inc., P/BV, long-term trends, calculation
| P/BV | = | Share price1, 2, 3 | ÷ | Book value per share1 (BVPS) | BVPS1 | = | Total Ecolab shareholders’ equity1 (in thousands) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 25, 2022 | 7.16 | = | 180.30 | ÷ | 25.19 | 25.19 | = | 7,224,200 | ÷ | 286,751,531 | |
| Feb 26, 2021 | 9.70 | = | 209.36 | ÷ | 21.57 | 21.57 | = | 6,166,500 | ÷ | 285,849,956 | |
| Feb 28, 2020 | 5.99 | = | 180.45 | ÷ | 30.14 | 30.14 | = | 8,685,300 | ÷ | 288,166,440 | |
| Mar 1, 2019 | 6.12 | = | 170.16 | ÷ | 27.80 | 27.80 | = | 8,003,200 | ÷ | 287,853,232 | |
| Feb 23, 2018 | 4.96 | = | 130.84 | ÷ | 26.37 | 26.37 | = | 7,618,500 | ÷ | 288,858,441 | |
| Feb 24, 2017 | 5.31 | = | 125.50 | ÷ | 23.66 | 23.66 | = | 6,901,100 | ÷ | 291,718,512 | |
| Feb 26, 2016 | 4.55 | = | 106.28 | ÷ | 23.34 | 23.34 | = | 6,909,900 | ÷ | 296,001,857 | |
| Feb 27, 2015 | 4.73 | = | 115.54 | ÷ | 24.45 | 24.45 | = | 7,315,900 | ÷ | 299,250,034 | |
| Feb 28, 2014 | 4.41 | = | 107.75 | ÷ | 24.42 | 24.42 | = | 7,344,300 | ÷ | 300,767,420 | |
| Feb 26, 2013 | 3.68 | = | 75.84 | ÷ | 20.60 | 20.60 | = | 6,077,000 | ÷ | 294,954,864 | |
| Feb 28, 2012 | 3.17 | = | 61.75 | ÷ | 19.46 | 19.46 | = | 5,666,700 | ÷ | 291,269,964 | |
| Feb 25, 2011 | 5.27 | = | 48.23 | ÷ | 9.15 | 9.15 | = | 2,129,200 | ÷ | 232,664,561 | |
| Feb 26, 2010 | 4.98 | = | 42.14 | ÷ | 8.47 | 8.47 | = | 2,000,900 | ÷ | 236,263,986 | |
| Feb 27, 2009 | 4.78 | = | 31.78 | ÷ | 6.65 | 6.65 | = | 1,571,600 | ÷ | 236,192,852 | |
| Feb 25, 2008 | 6.12 | = | 47.90 | ÷ | 7.83 | 7.83 | = | 1,935,700 | ÷ | 247,200,121 | |
| Feb 28, 2007 | 6.31 | = | 42.30 | ÷ | 6.70 | 6.70 | = | 1,680,230 | ÷ | 250,634,287 | |
| Feb 28, 2006 | 5.56 | = | 36.19 | ÷ | 6.51 | 6.51 | = | 1,649,210 | ÷ | 253,210,779 |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$
2 Data adjusted for splits and stock dividends.
3 Closing price as at the filing date of Ecolab Inc. Annual Report.
The long-term financial trajectory from February 2006 to February 2022 is characterized by a consistent increase in both share price and book value per share, although the Price to Book Value (P/BV) ratio exhibited significant volatility. While the share price grew from 36.19 to 180.30 over the period, the P/BV ratio did not follow a linear path, reflecting shifting market valuations and changes in the underlying equity base.
- Initial Valuation and Stability (2006–2011)
- During the first six years, the P/BV ratio remained relatively stable, oscillating between a high of 6.31 in 2007 and a low of 4.78 in 2009. This period suggests a consistent market valuation relative to the book value, despite the share price fluctuations associated with the 2009 market downturn.
- Significant Valuation Contraction (2012–2015)
- A sharp decline in the P/BV ratio is observed in February 2012, reaching a period low of 3.17. This contraction was primarily driven by a substantial increase in the book value per share, which rose from 9.15 in 2011 to 19.46 in 2012. Although the share price continued to climb, the rapid growth of the equity base outpaced the price increase, leading to a lower valuation multiple that gradually recovered to 4.73 by 2015.
- Steady Expansion and Peak Valuation (2016–2021)
- The P/BV ratio entered a period of expansion starting in 2016, climbing from 4.55 to a peak of 9.70 in February 2021. This peak was the result of a dual effect: the share price reached its highest point in the series at 209.36, while the book value per share experienced a notable decline from 30.14 in 2020 to 21.57 in 2021. This divergence created the highest valuation multiple observed in the analyzed timeframe.
- Recent Correction (2022)
- By February 2022, a correction in the P/BV ratio to 7.16 is evident. This adjustment was driven by a simultaneous decrease in the share price to 180.30 and a partial recovery of the book value per share to 25.19, indicating a moderation in market premium relative to the company's net asset value.
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Comparison to Competitors
Ecolab Inc., P/BV, long-term trends, comparison to competitors
| Ecolab Inc. | Linde plc | Sherwin-Williams Co. | |
|---|---|---|---|
| Feb 25, 2022 | 7.16 | 3.38 | 28.55 |
| Feb 26, 2021 | 9.70 | 2.78 | 17.79 |
| Feb 28, 2020 | 5.99 | 2.15 | 12.82 |
| Mar 1, 2019 | 6.12 | 1.65 | 10.93 |
| Feb 23, 2018 | 4.96 | 7.15 | 10.14 |
| Feb 24, 2017 | 5.31 | 6.83 | 15.52 |
| Feb 26, 2016 | 4.55 | 6.61 | 27.61 |
| Feb 27, 2015 | 4.73 | 6.60 | 27.40 |
| Feb 28, 2014 | 4.41 | 5.66 | 11.24 |
| Feb 26, 2013 | 3.68 | 5.48 | 9.32 |
| Feb 28, 2012 | 3.17 | 5.93 | 6.93 |
| Feb 25, 2011 | 5.27 | 5.08 | 5.51 |
| Feb 26, 2010 | 4.98 | 4.38 | 4.73 |
| Feb 27, 2009 | 4.78 | 4.54 | 3.37 |
| Feb 25, 2008 | 6.12 | 5.13 | 3.66 |
| Feb 28, 2007 | 6.31 | 4.34 | 4.49 |
| Feb 28, 2006 | 5.56 | 4.54 | 3.40 |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Sector (Chemicals)
Ecolab Inc., P/BV, long-term trends, comparison to sector (chemicals)
| Ecolab Inc. | Chemicals | |
|---|---|---|
| Feb 25, 2022 | 7.16 | 4.70 |
| Feb 26, 2021 | 9.70 | 3.84 |
| Feb 28, 2020 | 5.99 | 2.98 |
| Mar 1, 2019 | 6.12 | 2.27 |
| Feb 23, 2018 | 4.96 | 8.28 |
| Feb 24, 2017 | 5.31 | 9.20 |
| Feb 26, 2016 | 4.55 | 10.08 |
| Feb 27, 2015 | 4.73 | 9.74 |
| Feb 28, 2014 | 4.41 | 6.84 |
| Feb 26, 2013 | 3.68 | 6.36 |
| Feb 28, 2012 | 3.17 | 6.14 |
| Feb 25, 2011 | 5.27 | 5.17 |
| Feb 26, 2010 | 4.98 | 4.46 |
| Feb 27, 2009 | 4.78 | 4.21 |
| Feb 25, 2008 | 6.12 | 4.75 |
| Feb 28, 2007 | 6.31 | 4.39 |
| Feb 28, 2006 | 5.56 | 4.19 |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Industry (Materials)
Ecolab Inc., P/BV, long-term trends, comparison to industry (materials)
| Ecolab Inc. | Materials | |
|---|---|---|
| Feb 25, 2022 | 7.16 | 4.66 |
| Feb 26, 2021 | 9.70 | 3.99 |
| Feb 28, 2020 | 5.99 | 2.82 |
| Mar 1, 2019 | 6.12 | 2.21 |
| Feb 23, 2018 | 4.96 | 6.06 |
| Feb 24, 2017 | 5.31 | 6.38 |
| Feb 26, 2016 | 4.55 | 4.76 |
| Feb 27, 2015 | 4.73 | 3.49 |
| Feb 28, 2014 | 4.41 | 3.14 |
| Feb 26, 2013 | 3.68 | 3.18 |
| Feb 28, 2012 | 3.17 | 3.71 |
| Feb 25, 2011 | 5.27 | 4.42 |
| Feb 26, 2010 | 4.98 | 3.94 |
| Feb 27, 2009 | 4.78 | 3.16 |
| Feb 25, 2008 | 6.12 | 2.84 |
| Feb 28, 2007 | 6.31 | 4.45 |
| Feb 28, 2006 | 5.56 | 4.50 |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).