Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Ecolab Inc. (NYSE:ECL)

Enterprise Value to EBITDA (EV/EBITDA)

Intermediate level

Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)

Ecolab Inc., EBITDA calculation

US$ in thousands

Microsoft Excel LibreOffice Calc
12 months ended: Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Net income attributable to Ecolab 1,558,900  1,429,100  1,508,400  1,229,600  1,002,100 
Add: Net income attributable to noncontrolling interest 17,300  11,200  14,000  17,500  15,100 
Add: Income tax expense 322,700  364,300  242,400  403,300  300,500 
Earnings before tax (EBT) 1,898,900  1,804,600  1,764,800  1,650,400  1,317,700 
Add: Interest expense 215,300  237,200  274,600  285,400  253,700 
Earnings before interest and tax (EBIT) 2,114,200  2,041,800  2,039,400  1,935,800  1,571,400 
Add: Depreciation 654,100  621,300  585,700  561,000  559,500 
Add: Amortization 319,200  317,000  307,600  289,700  300,000 
Earnings before interest, tax, depreciation and amortization (EBITDA) 3,087,500  2,980,100  2,932,700  2,786,500  2,430,900 

Based on: 10-K (filing date: 2020-02-28), 10-K (filing date: 2019-03-01), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-02-24), 10-K (filing date: 2016-02-26).

Item Description The company
EBITDA To calculate EBITDA analysts start with net earnings. To that earnings number, interest, taxes, depreciation, and amortization are added. EBITDA as a pre-interest number is a flow to all providers of capital. Ecolab Inc.’s EBITDA increased from 2017 to 2018 and from 2018 to 2019.

Enterprise Value to EBITDA Ratio, Current

Ecolab Inc., current EV/EBITDA calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Selected Financial Data (US$ in thousands)
Enterprise value (EV) 68,760,657 
Earnings before interest, tax, depreciation and amortization (EBITDA) 3,087,500 
Valuation Ratio
EV/EBITDA 22.27
Benchmarks
EV/EBITDA, Competitors1
Air Products & Chemicals Inc. 16.80
Linde plc 18.49
EV/EBITDA, Sector
Chemicals 19.08
EV/EBITDA, Industry
Basic Materials 16.06

Based on: 10-K (filing date: 2020-02-28).

1 Click competitor name to see calculations.

If the company EV/EBITDA is lower then the EV/EBITDA of benchmark then company is relatively undervalued.
Otherwise, if the company EV/EBITDA is higher then the EV/EBITDA of benchmark then company is relatively overvalued.


Enterprise Value to EBITDA Ratio, Historical

Ecolab Inc., historical EV/EBITDA calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in thousands)
Enterprise value (EV)1 58,207,834  55,962,006  44,975,738  43,040,073  37,902,277 
Earnings before interest, tax, depreciation and amortization (EBITDA)2 3,087,500  2,980,100  2,932,700  2,786,500  2,430,900 
Valuation Ratio
EV/EBITDA3 18.85 18.78 15.34 15.45 15.59
Benchmarks
EV/EBITDA, Competitors4
Air Products & Chemicals Inc. 15.08 11.47 14.83 11.10 12.93
Linde plc 15.17 15.44 13.94 12.86 11.10
EV/EBITDA, Sector
Chemicals 15.93 15.26 14.63 13.03 12.94
EV/EBITDA, Industry
Basic Materials 13.39 14.49 13.28 13.63 11.81

Based on: 10-K (filing date: 2020-02-28), 10-K (filing date: 2019-03-01), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-02-24), 10-K (filing date: 2016-02-26).

1 See details »

2 See details »

3 2019 Calculation
EV/EBITDA = EV ÷ EBITDA
= 58,207,834 ÷ 3,087,500 = 18.85

4 Click competitor name to see calculations.

Valuation ratio Description The company
EV/EBITDA Enterprise value to earnings before interest, tax, depreciation and amortization is a valuation indicator for the overall company rather than common stock. Ecolab Inc.’s EV/EBITDA ratio increased from 2017 to 2018 and from 2018 to 2019.