What is its score on the fundamental measures?
Ecolab Inc. (ECL) receives a low rating of 35 from InvestorsObserver analysis. Our proprietary rating system takes into account the overall health of the company by looking at stock price, earnings and growth rate to determine if it represents good value. ECL holds a better value than 35% of the shares at its current price. Investors who focus on long-term growth through long-term investments will find the valuation ranking particularly relevant when allocating their assets.
ECL has a year-over-year price-to-earnings (PE) ratio of 45.3. The historical average of around 15 indicates low value for ECL’s stock as investors pay higher stock prices relative to the company’s earnings. ECL’s high PE ratio shows that the company has recently traded above its fair market value. Its earnings per share (EPS) over the last 12 months of 3.84 does not justify the current share price. However, rolling PE ratios do not take into account the company’s projected growth rate, resulting in many new companies having high PE ratios due to high growth potential that attracts investors despite insufficient earnings. . ECL has a 12-month PE-to-Growth (PEG) ratio of 2.52. Markets are overvaluing ECL against its projected growth, as its PEG ratio is currently above the fair market value of 1. The PEG of 3.83999991 comes from its forward price-to-earnings ratio divided by its growth rate. PEG ratios are one of the most widely used valuation metrics due to the incorporation of more fundamental business metrics and the focus on the future of the business rather than about his past.
ECL’s valuation metrics are low at its current price due to an overvalued PEG ratio despite strong growth. ECL’s PE and PEG are below the market average, resulting in a below-average valuation score. Click here for the full Ecolab Inc. (ECL) stock report.
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