Common Stock Valuation Ratios (Price Multiples)
Quarterly Data
Valuation ratios measure the quantity of an asset or flaw (e.g., earnings) associated with ownership of a specified claim (e.g., a share of ownership of the enterprise).
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- Income Statement
- Statement of Comprehensive Income
- Common-Size Income Statement
- Analysis of Liquidity Ratios
- Analysis of Reportable Segments
- Enterprise Value (EV)
- Current Ratio since 2005
- Price to Operating Profit (P/OP) since 2005
- Price to Book Value (P/BV) since 2005
- Price to Sales (P/S) since 2005
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Historical Valuation Ratios (Summary)
Ecolab Inc., historical price multiples (quarterly data)
Based on: 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
- Price to Earnings (P/E) Ratio
- The P/E ratio shows an upward trend beginning from March 31, 2017, with data first available at 25.06 in March 2018. This ratio steadily increased through 2019, peaking at 38.66 in September 2019, indicating a rising market valuation relative to earnings. Following a slight decline and stabilization in early 2020, data for mid-2020 are missing. The ratio then increased significantly in 2021, reaching a high of 59.4 in March 2021 before gradually declining to 45.76 by December 2021. This pattern suggests increased investor expectations or optimism during 2021, with some correction towards the year-end.
- Price to Operating Profit (P/OP) Ratio
- The P/OP ratio exhibits a similar upward trajectory to the P/E ratio starting from a value of 18.71 in March 2018. It increased consistently through 2019 and into early 2020, peaking at 34.03 by December 2020. Despite missing data in mid-2020, the available figures suggest a strong rise in valuation relative to operating profit. In 2021, the ratio surged further, hitting 49.62 in June 2021, before declining to 32.34 by December 2021. This fluctuating trend reflects periods of elevated market valuation relative to operating profits followed by partial normalization.
- Price to Sales (P/S) Ratio
- Starting from 2.73 in March 2018, the P/S ratio demonstrates a general upward trend through 2019 and 2020, with values increasing to a peak of 5.61 in June 2021. Following this peak, there is a slight decline to 4.06 by December 2021. This ratio’s trend indicates a rising market value relative to sales over the analyzed periods, highlighting increasing investor willingness to pay a premium for the company’s revenue, with some moderation toward the end of 2021.
- Price to Book Value (P/BV) Ratio
- The P/BV ratio started at 5.38 in March 2017 and remained relatively stable around mid-5 to mid-6 range until early 2020. A marked increase is observed in 2020, with the ratio jumping to a peak of 10.38 by March 2021, indicating a substantially higher market valuation against book value. Subsequent values display a downward adjustment, dropping to 7.16 by December 2021. Overall, this suggests increased investor optimism or perceived intangible asset value through 2020 and early 2021, followed by a correction in valuation.
Price to Earnings (P/E)
Ecolab Inc., historical P/E calculation (quarterly data)
| Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||||||||||||||||||||||
| Selected Financial Data (US$) | ||||||||||||||||||||||||||
| Net income (loss) attributable to Ecolab (in thousands) | ||||||||||||||||||||||||||
| Earnings per share (EPS)2 | ||||||||||||||||||||||||||
| Share price1, 3 | ||||||||||||||||||||||||||
| Valuation Ratio | ||||||||||||||||||||||||||
| P/E ratio4 | ||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||
| P/E Ratio, Competitors5 | ||||||||||||||||||||||||||
| Linde plc | ||||||||||||||||||||||||||
| Sherwin-Williams Co. | ||||||||||||||||||||||||||
Based on: 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
1 Data adjusted for splits and stock dividends.
2 Q4 2021 Calculation
EPS
= (Net income (loss) attributable to EcolabQ4 2021
+ Net income (loss) attributable to EcolabQ3 2021
+ Net income (loss) attributable to EcolabQ2 2021
+ Net income (loss) attributable to EcolabQ1 2021)
÷ No. shares of common stock outstanding
= ( + + + )
÷ =
3 Closing price as at the filing date of Ecolab Inc. Quarterly or Annual Report.
4 Q4 2021 Calculation
P/E ratio = Share price ÷ EPS
= ÷ =
5 Click competitor name to see calculations.
- Share Price Trend
- The share price demonstrated a general upward trend from March 2017 through December 2021, starting at $126.22 and peaking at $228.50 in March 2021. Noticeable volatility occurred towards the end of 2021 when the price declined to $180.30. Periods of steady growth include the intervals from March 2017 to December 2018 and from March 2020 to March 2021.
- Earnings Per Share (EPS) Trend
- EPS data starts in March 2018 with a value of $5.22, exhibiting moderate fluctuations around the $5.00 to $5.54 range until March 2020. A sharp decline occurred beginning in March 2020, with EPS turning negative and dropping as low as -$4.53 in December 2020. Recovery is observed starting in March 2021 with positive EPS returning to approximately $3.94 by December 2021.
- Price to Earnings (P/E) Ratio Trend
- The P/E ratio followed a rising pattern from March 2018 until September 2019, reaching a high of 38.66. It then decreased to 33.36 in March 2020 before data became unavailable for most of 2020. The ratio resumed at very high levels in 2021, peaking at 59.4 in March 2021 and subsequently declining to 45.76 by December 2021.
- Relationship Between Share Price, EPS, and P/E
- The increase in share price from 2017 to early 2020 corresponded with relatively stable and positive EPS figures, supported by moderate P/E ratios. The onset of negative EPS in 2020 did not result in immediate share price declines; in fact, share price increased notably in the same period, suggesting market anticipation or other external factors influencing valuation. The elevated P/E ratios in 2021 possibly reflect the low EPS base during recovery, implying investors were valuing future growth prospects despite lower earnings.
- Overall Observations
- The data suggests strong investor confidence over the period with share price growth and fluctuating earnings. The significant earnings volatility and temporary negative earnings in 2020 denote operational or external challenges affecting profitability. The elevated valuation multiples in 2021 indicate optimistic market expectations during earnings recovery phases. Careful monitoring of earnings stability and valuation metrics is warranted given the contrasting trends observed.
Price to Operating Profit (P/OP)
Ecolab Inc., historical P/OP calculation (quarterly data)
| Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||||||||||||||||||||||
| Selected Financial Data (US$) | ||||||||||||||||||||||||||
| Operating income (in thousands) | ||||||||||||||||||||||||||
| Operating profit per share2 | ||||||||||||||||||||||||||
| Share price1, 3 | ||||||||||||||||||||||||||
| Valuation Ratio | ||||||||||||||||||||||||||
| P/OP ratio4 | ||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||
| P/OP Ratio, Competitors5 | ||||||||||||||||||||||||||
| Linde plc | ||||||||||||||||||||||||||
| Sherwin-Williams Co. | ||||||||||||||||||||||||||
Based on: 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
1 Data adjusted for splits and stock dividends.
2 Q4 2021 Calculation
Operating profit per share
= (Operating incomeQ4 2021
+ Operating incomeQ3 2021
+ Operating incomeQ2 2021
+ Operating incomeQ1 2021)
÷ No. shares of common stock outstanding
= ( + + + )
÷ =
3 Closing price as at the filing date of Ecolab Inc. Quarterly or Annual Report.
4 Q4 2021 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= ÷ =
5 Click competitor name to see calculations.
The share price exhibited a general upward trend from the beginning of the period until late 2021, with fluctuations observed throughout the quarters. Starting at $126.22 in March 2017, the price rose steadily, reaching a peak of $228.50 in March 2021. Following this peak, a noticeable decline occurred by December 2021, dropping to $180.30. This pattern indicates a strong increase over the longer term, with increased volatility and a downward adjustment towards the end of the timeframe.
Operating profit per share (OP) data is available only from March 2018 onward. It shows relative stability around the $6.9 to $7.1 range throughout 2018 and 2019, peaking at $7.06 in December 2019. However, from 2020 Q1 the OP began to decline significantly, reaching a low point of $4.61 in September 2021. A slight recovery is noted in December 2021, with OP rising to $5.57. This downward trend suggests challenges that impacted profitability at the operating level during 2020 and 2021, possibly related to external market or operational factors.
The price-to-operating profit ratio (P/OP) reflects the valuation relative to operating profit per share. Starting from 18.71 in March 2018, the ratio increased consistently throughout the periods analyzed, peaking notably at 49.62 in June 2021 before decreasing to 32.34 by December 2021. The rising P/OP ratios indicate that share prices were growing at a faster rate than operating profits during much of the period, leading to higher valuation multiples. The decline in the ratio towards the end of 2021 aligns with the observed drop in share price and a partial recovery in operating profit.
In summary, the period saw a general growth in share price supported by stable operating profits initially. However, from 2020 forward, operating profits experienced a marked decline which was not immediately mirrored by share price reductions, leading to elevated valuation multiples. A correction phase is evident in late 2021, where share prices decreased alongside some improvement in profitability, suggesting a market adjustment to the company's changing financial performance.
- Share Price Trend
- Upward from $126.22 in early 2017 to a peak above $228 in early 2021, followed by a decline to $180 by late 2021.
- Operating Profit per Share Trend
- Stable around $7 in 2018–2019, followed by a significant decline starting in 2020, hitting lows near $4.6 in 2021, with slight recovery at the end of 2021.
- P/OP Ratio Trend
- Steady increase from 18.7 in early 2018 to nearly 50 in mid-2021, then a decline to about 32 by the end of 2021.
- Interpretation
- Elevated valuations relative to operating profits during 2020–2021 reflect market optimism or other factors despite declining profitability, with a correction in late 2021 indicating reassessment of financial performance.
Price to Sales (P/S)
Ecolab Inc., historical P/S calculation (quarterly data)
| Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||||||||||||||||||||||
| Selected Financial Data (US$) | ||||||||||||||||||||||||||
| Net sales (in thousands) | ||||||||||||||||||||||||||
| Sales per share2 | ||||||||||||||||||||||||||
| Share price1, 3 | ||||||||||||||||||||||||||
| Valuation Ratio | ||||||||||||||||||||||||||
| P/S ratio4 | ||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||
| P/S Ratio, Competitors5 | ||||||||||||||||||||||||||
| Linde plc | ||||||||||||||||||||||||||
| Sherwin-Williams Co. | ||||||||||||||||||||||||||
Based on: 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
1 Data adjusted for splits and stock dividends.
2 Q4 2021 Calculation
Sales per share
= (Net salesQ4 2021
+ Net salesQ3 2021
+ Net salesQ2 2021
+ Net salesQ1 2021)
÷ No. shares of common stock outstanding
= ( + + + )
÷ =
3 Closing price as at the filing date of Ecolab Inc. Quarterly or Annual Report.
4 Q4 2021 Calculation
P/S ratio = Share price ÷ Sales per share
= ÷ =
5 Click competitor name to see calculations.
- Share Price Trends
- The share price demonstrated a generally upward trajectory throughout the period from March 2017 to December 2021, rising from $126.22 to a peak of $228.50 in March 2021. This represents substantial appreciation over four years. However, after reaching this peak, the share price experienced a decline, dropping to $180.30 by December 2021. The price movement reflects significant growth with some volatility, particularly towards the end of the period under review.
- Sales Per Share Trends
- Sales per share data are available from March 2018 onward. Initially, sales per share increased slightly, reaching a high of $51.73 in December 2018. Following this peak, there is a clear downtrend, with sales per share declining steadily to $40.76 by June 2021. From June 2021 to December 2021, a modest recovery is observed, with sales per share increasing to $44.40. Overall, sales per share show a downward trend over the period, interrupted by minor recoveries.
- Price-to-Sales (P/S) Ratio Trends
- The P/S ratio rose consistently from 2.73 in March 2018 to a peak of 5.61 in March 2021, indicating increased market valuation relative to sales. This rise suggests investor optimism and possibly improved market sentiment despite declining actual sales per share. After the March 2021 peak, the P/S ratio decreased to 4.06 by December 2021, mirroring the decline in share price during the same timeframe but remaining elevated compared to earlier years.
- Insights and Patterns
- The analysis reveals an interesting divergence between sales per share and share price trends. While sales per share declined over much of the observed period, the share price generally increased, resulting in a rising P/S ratio. This pattern suggests that investors might have been valuing the company based on factors other than current sales performance, such as future growth prospects or profitability. The decline in share price and the P/S ratio toward the end of 2021 may indicate a market correction or reassessment of those prospects.
Price to Book Value (P/BV)
Ecolab Inc., historical P/BV calculation (quarterly data)
| Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||||||||||||||||||||||
| Selected Financial Data (US$) | ||||||||||||||||||||||||||
| Total Ecolab shareholders’ equity (in thousands) | ||||||||||||||||||||||||||
| Book value per share (BVPS)2 | ||||||||||||||||||||||||||
| Share price1, 3 | ||||||||||||||||||||||||||
| Valuation Ratio | ||||||||||||||||||||||||||
| P/BV ratio4 | ||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||
| P/BV Ratio, Competitors5 | ||||||||||||||||||||||||||
| Linde plc | ||||||||||||||||||||||||||
| Sherwin-Williams Co. | ||||||||||||||||||||||||||
Based on: 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
1 Data adjusted for splits and stock dividends.
2 Q4 2021 Calculation
BVPS = Total Ecolab shareholders’ equity ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Ecolab Inc. Quarterly or Annual Report.
4 Q4 2021 Calculation
P/BV ratio = Share price ÷ BVPS
= ÷ =
5 Click competitor name to see calculations.
The share price exhibited an overall upward trend from March 31, 2017, to December 31, 2021, with fluctuations observed throughout the quarters. Initially, the price rose steadily from $126.22 to a peak near $200 during mid-2019. After a decline in late 2019, it stabilized around the $180-$190 range in early 2020. Subsequently, there was a sharp increase reaching over $228 by March 2021, followed by a decline towards the end of 2021, ending near $180.
Book value per share (BVPS) displayed a consistent incremental growth over the entire period with minor interruptions. Starting at $23.48 in March 2017, it increased gradually to a high of approximately $30.51 by March 2020. A notable decrease occurred in the following quarters, dropping to about $20.52 by June 2020. After this decline, BVPS resumed its growth trajectory, ending at $25.19 by the last quarter of 2021.
The price-to-book value ratio (P/BV) experienced significant variability, influenced by the movements of both share price and BVPS. It ranged from a low around 4.96 to a peak close to 10.38 in December 2020. The ratio generally rose from 2017 through early 2020, reflecting an increase in market valuation relative to book value. A sharp spike in P/BV appeared in 2020, reaching near 9.7-10.38, indicative of a share price appreciating faster than book value. Subsequently, the ratio declined during 2021, settling at 7.16 by the end of the period.
- Share Price
- Demonstrated strong growth from 2017 to early 2021 with some volatility, peaking in March 2021, followed by a descending trend towards the end of 2021.
- Book Value per Share
- Showed steady growth interrupted by a significant decrease in mid-2020, then recovered and increased steadily again until the end of 2021.
- Price-to-Book Value Ratio
- Increased progressively with sharp fluctuations in 2020, peaking in late 2020, reflecting stronger market confidence and valuation premium, then declined moderately throughout 2021.
Overall, the financial indicators suggest a period of growth accompanied by market optimism, particularly significant around 2020, followed by some retrenchment during the final quarters of 2021. The fluctuations in BVPS and P/BV during 2020 warrant further investigation to understand underlying operational or accounting factors affecting intrinsic value and market perception.