Valuation Overview

Growth Story

Over the next few years, revenue is expected to grow by 7.17%, lower than industry average of 8.49%.

Growth Trajectory

Profitability

In the growth phase company makes 18.82% profit on every dollar of sales, higher than industry average of 10.57%.

Profitability Trajectory

Risk Profile

Investors expect at least 8.21% return to justify the risk of holding stock.

Risk vs Return

Required Return (Cost of Capital) (%)
Return on Invested Capital (%)

Financial Health Overview

Enterprise Value
35.45B USD
Equity Value
28.37B USD
FCF Yield
32.56%
Average ROIC
15.69%
Cost of Capital
8.43%
P/E Ratio
29.17x
Financial MetricMost Recent 12 months (USD)Previous Year (USD)
Revenues15.72B USD15.74B USD
Operating Income or EBIT3.18B USD3.10B USD
Interest Expense314.40M USD340.30M USD
Book Value Of Equity9.32B USD8.76B USD
Book Value Of Debt8.97B USD8.28B USD
Cash and Marketable Securities1.92B USD1.26B USD
Number of Shares Outstanding283.62M--
Minority interests31.90M USD0 USD
Current Stock Price271.57 USD--
Effective Tax Rate17.00%--
Marginal Tax Rate25.00%--

Performance vs Industry

Revenue Growth
-8.60%
-0.12%Company
vs
8.49%Industry
Below Industry
Operating Margin
+9.66%
20.23%Company
vs
10.56%Industry
Above Industry
Ecolab Inc. demonstrates superior operational efficiency with margins above industry average, indicating effective cost management.

Terminal Value Analysis

Growth Rate
4.59%
Cost of Capital
8.83%
Return on Capital
8.83%
Reinvestment Rate
52.09%
Terminal value represents 58% of total enterprise value, based on 4.59% perpetual growth and 8.83% discount rate.

Equity Value Breakdown

ComponentValueType
Present Value (Terminal Value) 20.40B USD Add
Present Value (Cash Flow Over Next 10 Years) 15.05B USD Add
Value of Operating Assets 35.45B USD Sub-total
Debt 8.96B USD Subtract
Minority Interests 31.90M USD Subtract
Cash 1.92B USD Add
Value of Equity 28.37B USD Sub-total
Number of Shares 283.62M shares Divisor
Estimated Value per Share (Fair Value) 100.05 USD Total
Current Market Price 271.57 USD Reference

Financial Projections

Total FCF Present Value
15.05B USD
Avg Revenue Growth
5.57%
Avg Operating Margin
18.51%
Avg ROIC
15.69%
Year 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Terminal Year
REVENUE
Revenue16.57B USD17.76B USD19.03B USD20.40B USD21.86B USD23.32B USD24.75B USD26.14B USD27.48B USD28.75B USD30.07B USD
Growth Rate 5.43% 7.16% 7.16% 7.16% 7.16% 6.65% 6.14% 5.62% 5.11% 4.59% 4.59%
PROFITABILITY
Operating Income3.35B USD3.42B USD3.58B USD3.74B USD3.91B USD4.17B USD4.42B USD4.67B USD4.91B USD5.14B USD5.37B USD
Operating Margin 20.23% 19.29% 18.82% 18.35% 17.88% 17.88% 17.88% 17.88% 17.88% 17.88% 17.88%
EBIT (1-tax)2.78B USD2.84B USD2.97B USD3.10B USD3.24B USD3.39B USD3.53B USD3.65B USD3.76B USD3.85B USD4.03B USD
CASH FLOW
Reinvestment716.58M USD767.96M USD823.01M USD882.02M USD877.50M USD1.26B USD1.22B USD1.17B USD1.11B USD1.16B USD2.10B USD
Free Cash Flow2.06B USD2.07B USD2.15B USD2.22B USD2.36B USD2.13B USD2.30B USD2.47B USD2.65B USD2.69B USD1.93B USD
Terminal Value--------------------45.68B USD
Present Value1.91B USD1.77B USD1.69B USD1.62B USD1.59B USD1.32B USD1.32B USD1.30B USD1.28B USD1.20B USD—
EFFICIENCY
ROIC 17.00% 16.65% 16.66% 16.64% 16.59% 16.61% 16.28% 15.95% 15.62% 15.29% 8.83%
Cost of Capital 8.20% 8.20% 8.20% 8.20% 8.20% 8.33% 8.45% 8.58% 8.70% 8.83% 8.83%
Sales/Capital 1.65x 1.65x 1.65x 1.65x 1.65x 1.13x 1.13x 1.13x 1.13x 1.13x —

Profitability & Efficiency

Operating Margin (%)
ROIC (%)

Value Creation Analysis

ROIC (%)
Cost of Capital (%)

Operational Cash Flow Analysis

Free Cash Flow ($B)
Reinvestment ($B)