Is Ecolab, Inc. overvalued or undervalued?

As of 1 May 2025, Ecolab, Inc. has moved from an expensive to a fair valuation grade. The company is currently fairly valued based on its financial metrics. Key ratios include a P/E ratio of 42, a Price to Book Value of 10.84, and an EV to EBITDA of 28.65. Compared to peers, Ecolab's P/E ratio of approximately 41.56 is higher than Linde Plc's 35.40, but lower than the significantly high P/E of Air Products & Chemicals, Inc. at 15.42, indicating a competitive position within its industry.
Ecolab's ROE stands at an impressive 25.53%, showcasing strong profitability relative to its equity. The company's recent stock performance has shown a YTD return of 13.50%, outperforming the S&P 500's 2.44%, which reinforces the notion that Ecolab is positioned well despite its fair valuation status. Overall, the analysis suggests that Ecolab is fairly valued in the current market environment.