Latest Ratios: P/E Ratio 38.9x · EV/EBITDA 24.7x · ROE 22.3%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $79.7B | $74.9B | $67.2B | $56.8B | $41.7B | $67.8B | $62.1B | $56.4B | $43.1B | $39.4B | $34.8B |
| Enterprise Value | $88.5B | $83.7B | $74.2B | $64.6B | $50.1B | $76.6B | $67.9B | $63.2B | $50.1B | $46.6B | $41.1B |
| P/E Ratio → | 38.88 | 36.06 | 31.79 | 41.41 | 38.20 | 60.00 | — | 36.21 | 30.19 | 26.21 | 28.31 |
| P/S Ratio | 4.95 | 4.66 | 4.27 | 3.71 | 2.94 | 5.33 | 5.27 | 4.49 | 2.94 | 2.85 | 2.64 |
| P/B Ratio | 8.23 | 7.64 | 7.64 | 7.04 | 5.75 | 9.35 | 10.01 | 6.47 | 5.36 | 5.13 | 4.99 |
| P/FCF | 41.84 | 39.32 | 36.91 | 34.71 | 38.79 | 47.80 | 45.29 | 33.41 | 30.16 | 32.26 | 29.40 |
| P/OCF | 26.98 | 25.36 | 23.87 | 23.56 | 23.33 | 32.89 | 33.38 | 23.32 | 18.94 | 18.86 | 17.93 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 5.20 | 4.71 | 4.22 | 3.53 | 6.02 | 5.76 | 5.03 | 3.41 | 3.37 | 3.13 |
| EV / EBITDA | 24.67 | 23.33 | 20.91 | 20.96 | 19.68 | 30.31 | 26.94 | 23.53 | 17.15 | 15.05 | 14.39 |
| EV / EBIT | 30.37 | 29.99 | 25.50 | 30.63 | 31.20 | 46.99 | 48.28 | 32.00 | 24.09 | 22.94 | 21.35 |
| EV / FCF | — | 43.93 | 40.77 | 39.49 | 46.62 | 54.00 | 49.55 | 37.38 | 35.00 | 38.08 | 34.78 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 44.5% | 44.5% | 43.5% | 40.3% | 38.2% | 41.0% | 41.5% | 44.0% | 41.3% | 42.1% | 47.9% |
| Operating Margin | 18.1% | 18.1% | 16.6% | 14.1% | 11.3% | 13.2% | 14.5% | 15.2% | 13.5% | 15.9% | 15.3% |
| Net Profit Margin | 12.9% | 12.9% | 13.4% | 9.0% | 7.7% | 8.9% | -10.2% | 12.4% | 9.7% | 10.9% | 9.3% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 22.3% | 22.3% | 25.1% | 17.9% | 15.0% | 16.8% | -16.1% | 18.6% | 18.2% | 20.5% | 17.6% |
| ROA | 8.8% | 8.8% | 9.6% | 6.3% | 5.1% | 5.7% | -6.2% | 7.6% | 7.1% | 7.9% | 6.7% |
| ROIC | 12.7% | 12.7% | 12.4% | 10.3% | 7.6% | 9.0% | 9.3% | 9.4% | 10.0% | 11.7% | 11.3% |
| ROCE | 15.8% | 15.8% | 14.9% | 12.4% | 9.2% | 10.3% | 10.5% | 11.4% | 12.0% | 13.8% | 13.8% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.96 | 0.96 | 0.94 | 1.08 | 1.24 | 1.26 | 1.15 | 0.78 | 0.87 | 0.95 | 0.96 |
| Debt / EBITDA | 2.63 | 2.63 | 2.33 | 2.83 | 3.54 | 3.62 | 2.82 | 2.54 | 2.41 | 2.37 | 2.34 |
| Net Debt / Equity | — | 0.90 | 0.80 | 0.97 | 1.16 | 1.21 | 0.94 | 0.77 | 0.86 | 0.92 | 0.91 |
| Net Debt / EBITDA | 2.45 | 2.45 | 1.98 | 2.53 | 3.31 | 3.48 | 2.32 | 2.50 | 2.37 | 2.30 | 2.23 |
| Debt / FCF | — | 4.61 | 3.86 | 4.77 | 7.84 | 6.20 | 4.27 | 3.97 | 4.84 | 5.82 | 5.38 |
| Interest Coverage | 11.57 | 11.57 | 8.60 | 5.95 | 6.09 | 7.54 | 5.72 | 8.16 | 7.58 | 7.60 | 6.98 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.08 | 1.08 | 1.26 | 1.30 | 1.30 | 1.32 | 1.75 | 1.33 | 1.27 | 1.34 | 1.42 |
| Quick Ratio | 0.81 | 0.81 | 0.95 | 0.95 | 0.88 | 0.90 | 1.31 | 1.03 | 0.85 | 0.92 | 0.98 |
| Cash Ratio | 0.12 | 0.12 | 0.26 | 0.21 | 0.14 | 0.10 | 0.43 | 0.03 | 0.03 | 0.06 | 0.11 |
| Asset Turnover | — | 0.65 | 0.70 | 0.70 | 0.66 | 0.60 | 0.65 | 0.60 | 0.73 | 0.69 | 0.72 |
| Inventory Turnover | 5.99 | 5.99 | 6.07 | 6.11 | 4.89 | 5.03 | 5.36 | 6.50 | 5.57 | 5.54 | 5.19 |
| Days Sales Outstanding | — | 81.63 | 70.22 | 71.98 | 74.15 | 75.38 | 75.61 | 72.32 | 66.25 | 67.84 | 67.88 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 0.9% | 1.0% | 1.0% | 1.1% | 1.4% | 0.8% | 0.9% | 1.0% | 1.2% | 1.1% | 1.2% |
| Payout Ratio | 36.3% | 36.3% | 31.4% | 45.0% | 55.2% | 50.1% | — | 35.5% | 34.7% | 29.8% | 34.8% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 2.6% | 2.8% | 3.1% | 2.4% | 2.6% | 1.7% | — | 2.8% | 3.3% | 3.8% | 3.5% |
| FCF Yield | 2.4% | 2.5% | 2.7% | 2.9% | 2.6% | 2.1% | 2.2% | 3.0% | 3.3% | 3.1% | 3.4% |
| Buyback Yield | 1.0% | 1.0% | 1.5% | 0.0% | 1.2% | 0.2% | 0.2% | 0.6% | 1.3% | 1.5% | 2.1% |
| Total Shareholder Yield | 1.9% | 2.1% | 2.5% | 1.1% | 2.7% | 1.0% | 1.1% | 1.6% | 2.5% | 2.7% | 3.4% |
| Shares Outstanding | — | $285M | $287M | $287M | $287M | $289M | $287M | $293M | $293M | $294M | $297M |
Input cost volatility exposure
According to current market data, Ecolab trades at a P/E of 38.96, which suggests investors are pricing in significant long-term stability and recurring revenue advantages that differentiate the firm from more cyclical specialty chemical peers who typically trade at substantially lower multiples in the current market environment.
The forward P/E of 34.12 implies that the market expects sustained earnings growth, yet this valuation appears aggressive given the recent deceleration in top-line revenue growth to 2.16%. Investors should monitor whether this premium is justified by the company's data-driven service model or if it reflects an overestimation of defensive growth in a cooling macroeconomic climate.
Based on reported financial figures, Ecolab's ROIC has remained in a narrow range between 2.5% and 3.4% over the last ten quarters, indicating that the company's aggressive acquisition strategy may be diluting the overall efficiency of capital deployed across its diverse global business segments and service infrastructure.
The persistent gap between ROIC and the company's cost of capital warrants further investigation, as it suggests that recent investments in equipment and acquisitions have yet to generate the expected accretive returns. This trend implies that management must improve asset utilization to justify the significant goodwill currently sitting on the balance sheet.
As reported in quarterly filings, Ecolab's cash conversion cycle has fluctuated between 58 and 70 days, suggesting that the company's reliance on a service-heavy model creates structural friction in managing receivables and inventory levels relative to its peers in the broader specialty chemicals and industrial services sector.
The variability in DSO and DIO indicates that the company's working capital efficiency is sensitive to customer payment patterns and supply chain logistics. Investors should monitor these metrics closely, as any sustained increase in the cash conversion cycle may further pressure free cash flow generation and liquidity buffers.
Based on the provided financial statements, Ecolab maintains a debt-to-equity ratio consistently near 0.96, which suggests that the company has managed its leverage profile with discipline despite the capital-intensive nature of its global operations and the ongoing integration of large-scale acquisitions within its portfolio.
The interest coverage ratio, which has fluctuated between 5.88 and 12.49, indicates that the company's ability to service its debt remains adequate under current conditions. However, the reliance on debt to fund asset expansion suggests that any significant downturn in operating margins could quickly reduce the company's financial flexibility.
The most commonly misapplied metric for Ecolab is the standard EV/EBITDA multiple used for commodity chemical producers, which obscures the company's unique service-based revenue model and the high switching costs inherent in its proprietary 3D TRASAR equipment placements that drive long-term, sticky customer relationships.
Analysts should instead focus on metrics that capture the value of recurring service revenue and the intangible asset of proprietary data, rather than treating the company as a cyclical manufacturer. Relying on commodity-style valuation multiples risks underestimating the defensive quality of the firm's earnings and its potential for long-term margin expansion.
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying ECL stock.
Ecolab Inc.'s current P/E ratio is 38.9x. The historical average is 30.8x. This places it at the 93th percentile of its historical range.
Ecolab Inc.'s current EV/EBITDA is 24.7x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 15.4x.
Ecolab Inc.'s return on equity (ROE) is 22.3%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 19.4%.
Based on historical data, Ecolab Inc. is trading at a P/E of 38.9x. This is at the 93th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Ecolab Inc.'s current dividend yield is 0.93% with a payout ratio of 36.3%.
Ecolab Inc. has 44.5% gross margin and 18.1% operating margin. Operating margin between 10-20% is typical for established companies.
Ecolab Inc.'s Debt/EBITDA ratio is 2.6x, indicating moderate leverage. A ratio between 2-4x is manageable but warrants monitoring.