Using the industry peer median P/E multiple (trailing + forward), Ecolab Inc. (ECL) has a fair value of $187.09 based on 3 comparable companies in the Chemicals - Specialty industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| Ecolab Inc.ECL | 75,661 | 36.4x | 39.9x |
| Linde plcLIN | 231,410 | 34.2x | 28.0x |
| The Sherwin-Williams CompanySHW | 79,093 | 31.1x | 28.1x |
| PPG Industries, Inc.PPG | 23,530 | 15.2x | 13.8x |
| Industry Median | 31.1x | 28.0x | |
| (*) Profit after tax | 2,076 | 1,895 | |
| Equity Value | 64,514 | 42,203 | |
| (/) Outstanding shares | 285 | 285 | |
| Fair Price | $226 | $148 | |
This P/E relative valuation uses the industry peer median Price-to-Earnings ratio to estimate fair value. Both trailing (last 12 months) and forward (next fiscal year analyst estimates) P/E multiples are computed independently.
The industry median trailing P/E is applied to the company's TTM net income, and the forward P/E to analyst-estimated net income. Each produces an equity value divided by shares outstanding to yield a fair price per share. The selected fair value is the average of the trailing and forward legs.