Enterprise Value to EBITDA (EV/EBITDA)
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- Analysis of Short-term (Operating) Activity Ratios
- Analysis of Long-term (Investment) Activity Ratios
- Analysis of Reportable Segments
- Analysis of Geographic Areas
- Common Stock Valuation Ratios
- Debt to Equity since 2005
- Total Asset Turnover since 2005
- Price to Operating Profit (P/OP) since 2005
- Analysis of Debt
- Aggregate Accruals
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Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Ecolab Inc., EBITDA calculation
US$ in thousands
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).
- Net Income (Loss) Attributable to Ecolab
- The net income exhibited consistent positive values from 2017 through 2019, ranging between approximately 1.43 billion and 1.56 billion US dollars. However, in 2020, there was a significant downturn, with net income turning negative at approximately -1.21 billion US dollars. This indicates a considerable loss during that fiscal year. The company recovered in 2021, reverting to a positive net income of about 1.13 billion US dollars, albeit slightly lower than the pre-2020 levels.
- Earnings Before Tax (EBT)
- EBT demonstrated an upward trend from 2017 to 2019, increasing from around 1.76 billion to nearly 1.90 billion US dollars. In 2020, earnings before tax decreased markedly to about 1.16 billion US dollars, reflecting a downturn during that year while remaining positive. The 2021 figures showed a rebound to approximately 1.41 billion US dollars, indicating partial recovery but still below the 2019 peak.
- Earnings Before Interest and Tax (EBIT)
- EBIT increased steadily from 2017 to 2019, from roughly 2.04 billion to 2.11 billion US dollars. It then fell sharply in 2020 to approximately 1.47 billion US dollars, consistent with the general decline observed in other profitability measures. In 2021, EBIT improved to about 1.64 billion US dollars, reinstating a positive trend but remaining below the highest prior values.
- Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA)
- EBITDA followed a similar pattern, rising gradually from 2.93 billion in 2017 to 3.09 billion US dollars in 2019. A pronounced decrease occurred in 2020, when EBITDA dropped to approximately 2.28 billion US dollars. By 2021, EBITDA had partially recovered to around 2.49 billion US dollars, yet it still did not reach the levels recorded before 2020.
- Overall Analysis
- The financial data reveal a consistent growth trajectory in earnings and profitability metrics from 2017 through 2019, indicative of stable operating performance during that period. The year 2020 marked a significant disruption, with substantial declines across all profitability indicators, including a net loss. This decline may reflect adverse conditions impacting operations or external factors. The year 2021 showed a recovery trend with improvements across all measures; however, values generally remained below the pre-2020 peaks, suggesting that while recovery efforts are underway, full restoration of prior profitability has not yet been achieved.
Enterprise Value to EBITDA Ratio, Current
Ecolab Inc., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in thousands) | |
| Enterprise value (EV) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | |
| Valuation Ratio | |
| EV/EBITDA | |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Linde plc | |
| Sherwin-Williams Co. | |
| EV/EBITDA, Sector | |
| Chemicals | |
| EV/EBITDA, Industry | |
| Materials | |
Based on: 10-K (reporting date: 2021-12-31).
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
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Enterprise value (EV)1 | ||||||
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | ||||||
| Valuation Ratio | ||||||
| EV/EBITDA3 | ||||||
| Benchmarks | ||||||
| EV/EBITDA, Competitors4 | ||||||
| Linde plc | ||||||
| Sherwin-Williams Co. | ||||||
| EV/EBITDA, Sector | ||||||
| Chemicals | ||||||
| EV/EBITDA, Industry | ||||||
| Materials | ||||||
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).
3 2021 Calculation
EV/EBITDA = EV ÷ EBITDA
= ÷ =
4 Click competitor name to see calculations.
- Enterprise Value (EV)
- The enterprise value demonstrated an overall upward trend from 2017 to 2020, increasing from approximately $44.98 billion to $65.31 billion. However, in 2021, there was a noticeable decline to around $60.13 billion, suggesting a reduction in the market's valuation or a change in the company's capital structure during that period.
- Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA)
- EBITDA showed a moderate increase from approximately $2.93 billion in 2017 to about $3.09 billion in 2019. This was followed by a significant decline in 2020 to roughly $2.28 billion, potentially reflecting operational challenges or external economic impacts during that year. The figure partially recovered in 2021 to approximately $2.49 billion but remained below the pre-2020 levels.
- EV/EBITDA Ratio
- The EV/EBITDA ratio rose steadily from 15.34 in 2017 to a peak of 18.85 in 2019, indicating an increasing valuation multiple relative to earnings. In 2020, the ratio surged sharply to 28.66, driven by the decline in EBITDA and rising EV, signaling potential market optimism or overvaluation despite reduced earnings. In 2021, the ratio decreased to 24.17, suggesting some market correction or improved earnings but still reflecting a relatively high multiple compared to earlier years.