Is Ecolab, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Ecolab, Inc. moved from very expensive to fair. Based on the current metrics, Ecolab appears to be fairly valued. The company's P/E ratio stands at 42, while its EV to EBITDA is 28.65, and the PEG ratio is 1.18. In comparison, Linde Plc, a peer, has a more attractive P/E of 35.69 and an EV to EBITDA of 21.54, indicating that Ecolab is relatively more expensive than some of its peers.
In terms of recent performance, Ecolab's stock has outperformed the S&P 500 over the year with a return of 7.64% compared to the S&P 500's 14.08%. However, over a three-year period, Ecolab's return of 91.26% also surpasses the S&P 500's 81.19%, suggesting a strong long-term performance despite recent underperformance. Overall, Ecolab's valuation metrics and peer comparisons indicate that it is fairly valued within its industry.