Price to Sales (P/S)
since 2005
Calculation
Ecolab Inc., P/S, long-term trends, calculation
| P/S | = | Share price1, 2, 3 | ÷ | Sales per share1 | Sales per share1 | = | Net sales1 (in thousands) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 25, 2022 | 4.06 | = | 180.30 | ÷ | 44.40 | 44.40 | = | 12,733,100 | ÷ | 286,751,531 | |
| Feb 26, 2021 | 5.08 | = | 209.36 | ÷ | 41.25 | 41.25 | = | 11,790,200 | ÷ | 285,849,956 | |
| Feb 28, 2020 | 3.49 | = | 180.45 | ÷ | 51.73 | 51.73 | = | 14,906,300 | ÷ | 288,166,440 | |
| Mar 1, 2019 | 3.34 | = | 170.16 | ÷ | 50.96 | 50.96 | = | 14,668,200 | ÷ | 287,853,232 | |
| Feb 23, 2018 | 2.73 | = | 130.84 | ÷ | 47.91 | 47.91 | = | 13,838,300 | ÷ | 288,858,441 | |
| Feb 24, 2017 | 2.78 | = | 125.50 | ÷ | 45.09 | 45.09 | = | 13,152,800 | ÷ | 291,718,512 | |
| Feb 26, 2016 | 2.32 | = | 106.28 | ÷ | 45.76 | 45.76 | = | 13,545,100 | ÷ | 296,001,857 | |
| Feb 27, 2015 | 2.42 | = | 115.54 | ÷ | 47.72 | 47.72 | = | 14,280,500 | ÷ | 299,250,034 | |
| Feb 28, 2014 | 2.45 | = | 107.75 | ÷ | 44.07 | 44.07 | = | 13,253,400 | ÷ | 300,767,420 | |
| Feb 26, 2013 | 1.89 | = | 75.84 | ÷ | 40.14 | 40.14 | = | 11,838,700 | ÷ | 294,954,864 | |
| Feb 28, 2012 | 2.65 | = | 61.75 | ÷ | 23.34 | 23.34 | = | 6,798,500 | ÷ | 291,269,964 | |
| Feb 25, 2011 | 1.84 | = | 48.23 | ÷ | 26.17 | 26.17 | = | 6,089,700 | ÷ | 232,664,561 | |
| Feb 26, 2010 | 1.69 | = | 42.14 | ÷ | 24.97 | 24.97 | = | 5,900,600 | ÷ | 236,263,986 | |
| Feb 27, 2009 | 1.22 | = | 31.78 | ÷ | 25.99 | 25.99 | = | 6,137,500 | ÷ | 236,192,852 | |
| Feb 25, 2008 | 2.16 | = | 47.90 | ÷ | 22.13 | 22.13 | = | 5,469,600 | ÷ | 247,200,121 | |
| Feb 28, 2007 | 2.17 | = | 42.30 | ÷ | 19.53 | 19.53 | = | 4,895,814 | ÷ | 250,634,287 | |
| Feb 28, 2006 | 2.02 | = | 36.19 | ÷ | 17.91 | 17.91 | = | 4,534,832 | ÷ | 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 analysis of the Price to Sales (P/S) ratio from February 2006 to February 2022 reveals a long-term upward trend in valuation multiples, characterized by three distinct phases: stability and correction, moderate growth, and rapid expansion followed by a correction.
- Early Stability and the 2009 Trough
- Between 2006 and 2008, the P/S ratio remained relatively stable, fluctuating within a narrow range between 2.02 and 2.17. This stability ended in 2009, when the ratio dropped to its period low of 1.22. This decline was driven by a significant reduction in share price, which fell to 31.78 US$ despite an increase in sales per share to 25.99 US$, indicating a sharp contraction in market valuation relative to revenue.
- Intermediate Recovery and Consolidation
- From 2010 to 2018, the P/S ratio entered a phase of recovery and moderate volatility. The ratio climbed from 1.69 in 2010 to a peak of 2.65 in 2012, before consolidating between 1.89 and 2.78 for several years. During this interval, both share price and sales per share grew consistently, suggesting that the market valuation remained largely in sync with the company's revenue growth.
- Recent Valuation Expansion and Correction
- A significant expansion in the P/S ratio occurred starting in 2019, with the ratio rising from 3.34 to a peak of 5.08 by February 2021. This peak was the result of a surge in share price to 209.36 US$ occurring simultaneously with a decrease in sales per share to 41.25 US$. By February 2022, the ratio corrected to 4.06, reflecting a decline in share price to 180.30 US$ and a modest recovery in sales per share to 44.40 US$.
Overall, the P/S ratio has increased from 2.02 in 2006 to 4.06 in 2022. The data indicates that the market has assigned a progressively higher premium to the company's revenue over time, particularly in the most recent five-year window.
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Comparison to Competitors
Ecolab Inc., P/S, long-term trends, comparison to competitors
| Ecolab Inc. | Linde plc | Sherwin-Williams Co. | |
|---|---|---|---|
| Feb 25, 2022 | 4.06 | 4.84 | 3.49 |
| Feb 26, 2021 | 5.08 | 4.83 | 3.50 |
| Feb 28, 2020 | 3.49 | 3.74 | 2.95 |
| Mar 1, 2019 | 3.34 | 5.71 | 2.33 |
| Feb 23, 2018 | 2.73 | 3.76 | 2.50 |
| Feb 24, 2017 | 2.78 | 3.26 | 2.46 |
| Feb 26, 2016 | 2.32 | 2.69 | 2.11 |
| Feb 27, 2015 | 2.42 | 3.03 | 2.45 |
| Feb 28, 2014 | 2.45 | 3.14 | 1.96 |
| Feb 26, 2013 | 1.89 | 2.96 | 1.75 |
| Feb 28, 2012 | 2.65 | 2.89 | 1.20 |
| Feb 25, 2011 | 1.84 | 2.91 | 1.14 |
| Feb 26, 2010 | 1.69 | 2.60 | 0.99 |
| Feb 27, 2009 | 1.22 | 1.69 | 0.68 |
| Feb 25, 2008 | 2.16 | 2.81 | 0.82 |
| Feb 28, 2007 | 2.17 | 2.37 | 1.15 |
| Feb 28, 2006 | 2.02 | 2.31 | 0.82 |
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/S, long-term trends, comparison to sector (chemicals)
| Ecolab Inc. | Chemicals | |
|---|---|---|
| Feb 25, 2022 | 4.06 | 4.31 |
| Feb 26, 2021 | 5.08 | 4.29 |
| Feb 28, 2020 | 3.49 | 3.44 |
| Mar 1, 2019 | 3.34 | 3.88 |
| Feb 23, 2018 | 2.73 | 3.04 |
| Feb 24, 2017 | 2.78 | 2.83 |
| Feb 26, 2016 | 2.32 | 2.40 |
| Feb 27, 2015 | 2.42 | 2.75 |
| Feb 28, 2014 | 2.45 | 2.59 |
| Feb 26, 2013 | 1.89 | 2.41 |
| Feb 28, 2012 | 2.65 | 2.15 |
| Feb 25, 2011 | 1.84 | 2.14 |
| Feb 26, 2010 | 1.69 | 1.89 |
| Feb 27, 2009 | 1.22 | 1.26 |
| Feb 25, 2008 | 2.16 | 1.89 |
| Feb 28, 2007 | 2.17 | 1.78 |
| Feb 28, 2006 | 2.02 | 1.59 |
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/S, long-term trends, comparison to industry (materials)
| Ecolab Inc. | Materials | |
|---|---|---|
| Feb 25, 2022 | 4.06 | 3.83 |
| Feb 26, 2021 | 5.08 | 4.08 |
| Feb 28, 2020 | 3.49 | 2.91 |
| Mar 1, 2019 | 3.34 | 2.81 |
| Feb 23, 2018 | 2.73 | 2.50 |
| Feb 24, 2017 | 2.78 | 2.22 |
| Feb 26, 2016 | 2.32 | 1.64 |
| Feb 27, 2015 | 2.42 | 1.94 |
| Feb 28, 2014 | 2.45 | 2.14 |
| Feb 26, 2013 | 1.89 | 2.08 |
| Feb 28, 2012 | 2.65 | 2.06 |
| Feb 25, 2011 | 1.84 | 2.38 |
| Feb 26, 2010 | 1.69 | 2.02 |
| Feb 27, 2009 | 1.22 | 0.98 |
| Feb 25, 2008 | 2.16 | 2.08 |
| Feb 28, 2007 | 2.17 | 1.83 |
| Feb 28, 2006 | 2.02 | 1.77 |
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).