Ecolab Inc. logo ECL - Ecolab Inc.

Price: -- -- | CONSENSUS: Buy DETAILS
STRONG
BUY
0
BUY 26
HOLD 10
SELL 1
STRONG
SELL
0
| PRICE TARGET: $328.90 DETAILS
HIGH: $345.00
LOW: $293.00
MEDIAN: $332.50
CONSENSUS: $328.90
UPSIDE: 29.84%
AlphaVal

AlphaVal

Deterministic, archetype-aware fair value

Stable Earnings Power 65% confidence

Primary model: P/Adj-EPS × Normalized Multiple

Valuation Signal Overvalued Moderate
Trading 35.9% above fair value
Current Price $253.32
Bear Case $149.13 41.1% downside ($149.13 - $253.32) / $253.32 = -41.1% $8.36 × 12x P/E
Fair Value $186.41 26.4% downside ($186.41 - $253.32) / $253.32 = -26.4% $8.36 × 15x P/E
Bull Case $223.70 11.7% downside ($223.70 - $253.32) / $253.32 = -11.7% $8.36 × 18x P/E

Adjust Assumptions

15.0x
8.36$

Key Value Driver

Normalized P/E multiple (15x base case)

Implied Market Multiple 30.3x

Plain-Language Summary

Our base-case estimate uses a valuation based on adjusted earnings per share and a normalized price-to-earnings multiple. We then blend that result with the average analyst price target of $328.90 from 37 analysts, using a 30% weight on analyst consensus. That produces an estimated intrinsic value of $186.41 per share.

Warnings

Dividend-based valuation: $361.42 (above our primary estimate by 188%). Large gaps may signal the dividend doesn't reflect full earning power.
Wall Street's average price target is $328.90 (from 37 analysts). Our estimate is 62% below the consensus -- consider that gap carefully.

Key Risks

  • Growth DCF inappropriate — terminal value assumptions dominate
  • EV/EBITDA misleading for regulated businesses where capex is mandated
  • Regulatory risk is a fat tail not visible in normal multiples