Is Ecolab, Inc. overvalued or undervalued?

As of 7 July 2025, the valuation grade for Ecolab, Inc. has moved from expensive to fair. The company appears fairly valued based on its current metrics. Key ratios include a P/E ratio of 42, an EV to EBITDA of 28.65, and a PEG ratio of 1.18. In comparison, Linde Plc, a peer, has a more attractive P/E of 35.69, while Air Products & Chemicals, Inc. is considered expensive with a P/E of 15.89.
Despite a recent decline in stock performance, with Ecolab's one-week return at -3.66% compared to the S&P 500's 1.05%, the year-to-date return of 13.02% slightly outpaces the S&P 500's 12.22%. This suggests that while Ecolab is currently fairly valued, it may face challenges in maintaining its performance relative to the broader market.