Ecolab Inc. (ECL) DCF Valuation
Transparent DCF models put Ecolab Inc. (ECL)'s fair value in a range of $64.65 – $220.10 — the low end is TGM's conservative base case (5% FCF growth, 10% discount), the high end the analyst consensus (FMP). Today's price of $264.44 sits above that range — by these conservative assumptions it looks richly valued; the reverse-DCF below is the better lens for a high-growth name.
Reverse DCF: at today's $264.44, the market is pricing in roughly +20.6%/yr free-cash-flow growth over the next decade (at a 10% required return) — versus its actual 5-year FCF CAGR of +6.7%. The price is betting on acceleration above its track record.
Current Price
$264.44
Fair-Value Range
$64.65 – $220.10
Market-Implied Growth
+20.6%/yr
vs +6.7% 5Y actual
ECL DCF Fair Value Calculator
Edit the assumptions to see how they change the estimated fair value. Illustrative model — not investment advice. Defaults to a conservative base case; the analyst (FMP) DCF, where available, is shown as a reference below.
Base inputs: FCF $1.6B · 0.28B shares · net debt $8.2B
Estimated Fair Value
$64.65
-75.6% vs $264.44
Sensitivity — fair value by discount rate × terminal growth
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 5.0%/yr FCF growth and 10-year horizon fixed. Green = above today's $264.44; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 8.0% | $87.40 | $93.37 | $100 | $109 | $119 |
| 9.0% | $70.97 | $75.05 | $79.76 | $85.26 | $91.76 |
| 10.0% | $58.45 | $61.35 | $64.65 | $68.41 | $72.75 |
| 11.0% | $48.61 | $50.74 | $53.12 | $55.80 | $58.83 |
| 12.0% | $40.68 | $42.28 | $44.05 | $46.01 | $48.21 |
About Ecolab Inc.
Ecolab Inc. delivers essential water, hygiene, and infection prevention products and services to clients across the United States and globally. The company organizes its operations into several key segments: Global Industrial, Global Institutional & Specialty, Global Healthcare & Life Sciences, and an "Other" segment. Through its Global Industrial division, Ecolab furnishes a range of water treatment, process applications, and cleaning and sanitizing solutions. These offerings cater to a diverse array of sectors including manufacturing, food and beverage processing, transportation, chemical production, metals and mining, power generation, pulp and paper, commercial laundries, and the petroleum, refining, and petrochemical industries. The Global Institutional & Specialty segment focuses on delivering specialized cleaning and sanitizing products primarily to the foodservice, hospitality, lodging, government and education, and retail sectors. Ecolab's Global Healthcare & Life Sciences segment addresses the needs of the healthcare, personal care, and pharmaceutical industries. It supplies specialized cleaning and sanitizing products, encompassing infection prevention, surgical solutions, and comprehensive cleaning and contamination control, marketed under brand names like Ecolab, Microtek, and Anios. Within the "Other" segment, Ecolab provides pest elimination services. These services aim to detect, eliminate, and prevent pests, including rodents and insects, for various clients such as restaurants, food and beverage processors, educational and healthcare institutions, hotels, quick service restaurants, grocery stores, and other commercial and institutional entities. This segment additionally furnishes colloidal silica, used for binding and polishing applications in the semiconductor, catalyst, aerospace component manufacturing, and chemical sectors. Furthermore, it delivers products and services for comprehensive wash process management, featuring custom-designed programs, premium products, dispensing equipment, water and energy conservation, and real-time data management. Ecolab distributes its offerings via its field sales and corporate account teams, as well as through a network of distributors and dealers. Established in 1923, the company maintains its headquarters in Saint Paul, Minnesota.
- Sector
- Basic Materials
- Industry
- Chemicals - Specialty
- CEO
- Christophe Beck