Enterprise Value (EV)
Current Enterprise Value (EV)
Ecolab Inc., current enterprise value calculation
| Current share price (P) | $180.30 |
| No. shares of common stock outstanding | 286,751,531 |
| US$ in thousands | |
| Common equity (market value)1 | 51,701,301) |
| Add: Noncontrolling interest (per books) | 28,900) |
| Total equity | 51,730,201) |
| Add: Short-term debt (per books) | 411,000) |
| Add: Long-term debt, excluding current maturities (per books) | 8,347,200) |
| Total equity and debt | 60,488,401) |
| Less: Cash and cash equivalents | 359,900) |
| Enterprise value (EV) | 60,128,501) |
Based on: 10-K (reporting date: 2021-12-31).
1 Common equity (market value) = Share price × No. shares of common stock outstanding
= 180.30 × 286,751,531
Historical Enterprise Value (EV)
Ecolab Inc., EV calculation
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).
1 Data adjusted for splits and stock dividends.
2 Closing price as at the filing date of Ecolab Inc. Annual Report.
3 2021 Calculation
Common equity (market value) = Share price × No. shares of common stock outstanding
= 180.30 × 286,751,531
The valuation profile exhibits a consistent growth trajectory from 2017 through 2020, followed by a notable contraction in 2021. This period is characterized by a significant expansion in both market capitalization and overall enterprise value, peaking in 2020 before undergoing a correction.
- Enterprise Value (EV) Evolution
- Enterprise value increased steadily from 44,975,738 thousand US$ in 2017 to a peak of 65,306,947 thousand US$ in 2020, representing a total increase of approximately 45%. This upward trend reversed in 2021, with the value declining to 60,128,501 thousand US$, indicating a reduction in the total market valuation of the entity's core business operations.
- Market Equity Performance
- Common equity market value followed a similar pattern to the enterprise value, rising from 37,794,238 thousand US$ in 2017 to 59,845,547 thousand US$ in 2020. The most significant single-year growth occurred between 2017 and 2018, where market value grew by over 11 billion US$. A contraction occurred in 2021, with market value falling to 51,701,301 thousand US$, mirroring the broader decline in enterprise value.
- Capital Structure and Valuation Relationship
- A close correlation is observed between total equity and debt and the final enterprise value. The narrow margin between these two figures across the five-year period suggests a stable relationship between the company's capital commitments and its overall market valuation. By 2021, the convergence of common equity market value and total equity indicates that the market's valuation of the company's equity aligned closely with its recorded book value.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.
How can I help you?