Price to Earnings (P/E)
since 2005
Calculation
Ecolab Inc., P/E, long-term trends, calculation
| P/E | = | Share price1, 2, 3 | ÷ | Earnings per share1 (EPS) | EPS1 | = | Net income (loss) attributable to Ecolab1 (in thousands) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 25, 2022 | 45.76 | = | 180.30 | ÷ | 3.94 | 3.94 | = | 1,129,900 | ÷ | 286,751,531 | |
| Feb 26, 2021 | — | = | 209.36 | ÷ | -4.22 | -4.22 | = | -1,205,100 | ÷ | 285,849,956 | |
| Feb 28, 2020 | 33.36 | = | 180.45 | ÷ | 5.41 | 5.41 | = | 1,558,900 | ÷ | 288,166,440 | |
| Mar 1, 2019 | 34.27 | = | 170.16 | ÷ | 4.96 | 4.96 | = | 1,429,100 | ÷ | 287,853,232 | |
| Feb 23, 2018 | 25.06 | = | 130.84 | ÷ | 5.22 | 5.22 | = | 1,508,400 | ÷ | 288,858,441 | |
| Feb 24, 2017 | 29.77 | = | 125.50 | ÷ | 4.22 | 4.22 | = | 1,229,600 | ÷ | 291,718,512 | |
| Feb 26, 2016 | 31.39 | = | 106.28 | ÷ | 3.39 | 3.39 | = | 1,002,100 | ÷ | 296,001,857 | |
| Feb 27, 2015 | 28.75 | = | 115.54 | ÷ | 4.02 | 4.02 | = | 1,202,800 | ÷ | 299,250,034 | |
| Feb 28, 2014 | 33.49 | = | 107.75 | ÷ | 3.22 | 3.22 | = | 967,800 | ÷ | 300,767,420 | |
| Feb 26, 2013 | 31.79 | = | 75.84 | ÷ | 2.39 | 2.39 | = | 703,600 | ÷ | 294,954,864 | |
| Feb 28, 2012 | 38.89 | = | 61.75 | ÷ | 1.59 | 1.59 | = | 462,500 | ÷ | 291,269,964 | |
| Feb 25, 2011 | 21.16 | = | 48.23 | ÷ | 2.28 | 2.28 | = | 530,300 | ÷ | 232,664,561 | |
| Feb 26, 2010 | 23.86 | = | 42.14 | ÷ | 1.77 | 1.77 | = | 417,300 | ÷ | 236,263,986 | |
| Feb 27, 2009 | 16.75 | = | 31.78 | ÷ | 1.90 | 1.90 | = | 448,100 | ÷ | 236,192,852 | |
| Feb 25, 2008 | 27.72 | = | 47.90 | ÷ | 1.73 | 1.73 | = | 427,200 | ÷ | 247,200,121 | |
| Feb 28, 2007 | 28.76 | = | 42.30 | ÷ | 1.47 | 1.47 | = | 368,615 | ÷ | 250,634,287 | |
| Feb 28, 2006 | 28.68 | = | 36.19 | ÷ | 1.26 | 1.26 | = | 319,481 | ÷ | 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.
Analysis of the valuation metrics from 2006 to 2022 reveals a long-term upward trajectory in share price, accompanied by a general increase in earnings per share, though characterized by specific periods of volatility and valuation expansion.
- Share Price and Earnings Growth
- The share price exhibited consistent long-term growth, increasing from $36.19 in 2006 to a peak of $209.36 in 2021, before settling at $180.30 in 2022. Earnings per share followed a similar growth pattern, rising from $1.26 in 2006 to a peak of $5.41 in 2020, indicating a strong historical correlation between profitability and market price.
- Price-to-Earnings (P/E) Ratio Dynamics
- The P/E ratio remained relatively stable between 27.72 and 28.76 from 2006 to 2008, followed by a sharp contraction to 16.75 in 2009. From 2010 to 2020, the ratio fluctuated primarily between 21.16 and 34.27, suggesting a consistent market premium. A notable spike occurred in 2012, where the ratio reached 38.89 despite a concurrent decline in earnings per share to $1.59.
- Recent Valuation Anomalies
- A significant disruption is observed in 2021, where earnings per share fell to -4.22, resulting in the absence of a calculable P/E ratio for that period. By 2022, while earnings recovered to $3.94, the P/E ratio expanded to 45.76. This represents the highest valuation multiple in the analyzed period, indicating that the market assigned a substantially higher premium to the stock relative to its earnings than in previous years.
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Comparison to Competitors
Ecolab Inc., P/E, long-term trends, comparison to competitors
| Ecolab Inc. | Linde plc | Sherwin-Williams Co. | |
|---|---|---|---|
| Feb 25, 2022 | 45.76 | 38.92 | 37.32 |
| Feb 26, 2021 | — | 52.57 | 31.64 |
| Feb 28, 2020 | 33.36 | 46.22 | 34.31 |
| Mar 1, 2019 | 34.27 | 19.41 | 36.79 |
| Feb 23, 2018 | 25.06 | 34.48 | 21.12 |
| Feb 24, 2017 | 29.77 | 22.87 | 25.74 |
| Feb 26, 2016 | 31.39 | 18.76 | 22.74 |
| Feb 27, 2015 | 28.75 | 21.92 | 31.54 |
| Feb 28, 2014 | 33.49 | 21.31 | 26.50 |
| Feb 26, 2013 | 31.79 | 19.64 | 26.48 |
| Feb 28, 2012 | 38.89 | 19.45 | 23.80 |
| Feb 25, 2011 | 21.16 | 24.62 | 19.17 |
| Feb 26, 2010 | 23.86 | 18.56 | 16.18 |
| Feb 27, 2009 | 16.75 | 15.03 | 11.36 |
| Feb 25, 2008 | 27.72 | 22.42 | 10.62 |
| Feb 28, 2007 | 28.76 | 20.00 | 15.53 |
| Feb 28, 2006 | 28.68 | 24.39 | 12.72 |
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/E, long-term trends, comparison to sector (chemicals)
| Ecolab Inc. | Chemicals | |
|---|---|---|
| Feb 25, 2022 | 45.76 | 38.39 |
| Feb 26, 2021 | — | 43.19 |
| Feb 28, 2020 | 33.36 | 41.42 |
| Mar 1, 2019 | 34.27 | 22.92 |
| Feb 23, 2018 | 25.06 | 26.64 |
| Feb 24, 2017 | 29.77 | 24.11 |
| Feb 26, 2016 | 31.39 | 20.37 |
| Feb 27, 2015 | 28.75 | 25.17 |
| Feb 28, 2014 | 33.49 | 22.86 |
| Feb 26, 2013 | 31.79 | 21.50 |
| Feb 28, 2012 | 38.89 | 20.36 |
| Feb 25, 2011 | 21.16 | 23.10 |
| Feb 26, 2010 | 23.86 | 17.95 |
| Feb 27, 2009 | 16.75 | 14.00 |
| Feb 25, 2008 | 27.72 | 18.37 |
| Feb 28, 2007 | 28.76 | 18.36 |
| Feb 28, 2006 | 28.68 | 19.84 |
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/E, long-term trends, comparison to industry (materials)
| Ecolab Inc. | Materials | |
|---|---|---|
| Feb 25, 2022 | 45.76 | 28.21 |
| Feb 26, 2021 | — | 47.50 |
| Feb 28, 2020 | 33.36 | 49.13 |
| Mar 1, 2019 | 34.27 | 17.75 |
| Feb 23, 2018 | 25.06 | 22.15 |
| Feb 24, 2017 | 29.77 | — |
| Feb 26, 2016 | 31.39 | — |
| Feb 27, 2015 | 28.75 | 69.44 |
| Feb 28, 2014 | 33.49 | 17.83 |
| Feb 26, 2013 | 31.79 | 15.06 |
| Feb 28, 2012 | 38.89 | 12.60 |
| Feb 25, 2011 | 21.16 | 14.83 |
| Feb 26, 2010 | 23.86 | 14.87 |
| Feb 27, 2009 | 16.75 | — |
| Feb 25, 2008 | 27.72 | 15.68 |
| Feb 28, 2007 | 28.76 | 13.52 |
| Feb 28, 2006 | 28.68 | 15.84 |
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).