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Ecolab (BSP:E1CL34) Cyclically Adjusted PB Ratio : 7.88 (As of May. 22, 2024)


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What is Ecolab Cyclically Adjusted PB Ratio?

As of today (2024-05-22), Ecolab's current share price is R$286.81. Ecolab's Cyclically Adjusted Book per Share for the quarter that ended in Mar. 2024 was R$36.40. Ecolab's Cyclically Adjusted PB Ratio for today is 7.88.

The historical rank and industry rank for Ecolab's Cyclically Adjusted PB Ratio or its related term are showing as below:

BSP:E1CL34' s Cyclically Adjusted PB Ratio Range Over the Past 10 Years
Min: 4.63   Med: 7.77   Max: 9.95
Current: 7.77

During the past years, Ecolab's highest Cyclically Adjusted PB Ratio was 9.95. The lowest was 4.63. And the median was 7.77.

BSP:E1CL34's Cyclically Adjusted PB Ratio is ranked worse than
92.63% of 1086 companies
in the Chemicals industry
Industry Median: 1.66 vs BSP:E1CL34: 7.77

The Shiller PE Ratio was first used by professor Robert Shiller. He uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings per share of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PB Ratio. The Cyclically Adjusted Book per Share is the average of the inflation adjusted book value per share of a company over the past 10 years.

Ecolab's adjusted book value per share data for the three months ended in Mar. 2024 was R$35.773. Add all the adjusted book value per share for the past 10 years together and divide the count will get our Cyclically Adjusted Book per Share, which is R$36.40 for the trailing ten years ended in Mar. 2024.

Shiller PE for Stocks: The True Measure of Stock Valuation


Ecolab Cyclically Adjusted PB Ratio Historical Data

The historical data trend for Ecolab's Cyclically Adjusted PB Ratio can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Ecolab Cyclically Adjusted PB Ratio Chart

Ecolab Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Cyclically Adjusted PB Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 8.25 8.75 8.58 5.01 6.66

Ecolab Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Cyclically Adjusted PB Ratio Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.61 6.27 5.65 6.66 7.63

Competitive Comparison of Ecolab's Cyclically Adjusted PB Ratio

For the Specialty Chemicals subindustry, Ecolab's Cyclically Adjusted PB Ratio, along with its competitors' market caps and Cyclically Adjusted PB Ratio data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Ecolab's Cyclically Adjusted PB Ratio Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Ecolab's Cyclically Adjusted PB Ratio distribution charts can be found below:

* The bar in red indicates where Ecolab's Cyclically Adjusted PB Ratio falls into.



Ecolab Cyclically Adjusted PB Ratio Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted PB Ratio takes the Book Value per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/B calculation. Because it considers this 10-year average, it's often referred to as the CAPB Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PB Ratio.

Ecolab's Cyclically Adjusted PB Ratio for today is calculated as

Cyclically Adjusted PB Ratio=Share Price/ Cyclically Adjusted Book per Share
=286.81/36.4
=7.88

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Ecolab's Cyclically Adjusted Book per Share for the quarter that ended in Mar. 2024 is calculated as:

For example, Ecolab's adjusted Book Value per Share data for the three months ended in Mar. 2024 was:

Adj_Book=Book Value per Share/CPI of Mar. 2024 (Change)*Current CPI (Mar. 2024)
=35.773/131.7762*131.7762
=35.773

Current CPI (Mar. 2024) = 131.7762.

Ecolab Quarterly Data

Book Value per Share CPI Adj_Book
201406 13.811 100.560 18.098
201409 14.992 100.428 19.672
201412 16.112 99.070 21.431
201503 18.122 99.621 23.971
201506 17.957 100.684 23.502
201509 22.414 100.392 29.421
201512 22.649 99.792 29.908
201603 20.745 100.470 27.209
201606 19.373 101.688 25.105
201609 19.163 101.861 24.791
201612 19.829 101.863 25.652
201703 18.356 102.862 23.516
201706 19.700 103.349 25.119
201709 19.577 104.136 24.773
201712 21.593 104.011 27.357
201803 21.596 105.290 27.029
201806 25.615 106.317 31.749
201809 28.195 106.507 34.884
201812 27.006 105.998 33.574
201903 27.384 107.251 33.646
201906 27.554 108.070 33.598
201909 30.612 108.329 37.238
201912 30.902 108.420 37.559
202003 37.263 108.902 45.090
202006 26.612 108.767 32.242
202009 28.446 109.815 34.135
202012 27.761 109.897 33.288
202103 31.001 111.754 36.555
202106 29.481 114.631 33.890
202109 31.931 115.734 36.357
202112 35.598 117.630 39.879
202203 30.842 121.301 33.505
202206 31.409 125.017 33.107
202209 32.505 125.227 34.205
202212 33.353 125.222 35.099
202303 33.588 127.348 34.756
202306 32.170 128.729 32.932
202309 33.756 129.860 34.254
202312 34.522 129.419 35.151
202403 35.773 131.776 35.773

Add all the adjusted book value per share together and divide the count will get our Cyclically Adjusted Book per Share.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.


Ecolab  (BSP:E1CL34) Cyclically Adjusted PB Ratio Explanation

Compared with the regular PB Ratio, which works poorly for cyclical businesses, the Cyclically Adjusted PB Ratio smoothed out the fluctuations of book value during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Cyclically Adjusted PB Ratio should give similar results to regular PB Ratio.


Ecolab Cyclically Adjusted PB Ratio Related Terms

Thank you for viewing the detailed overview of Ecolab's Cyclically Adjusted PB Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


Ecolab (BSP:E1CL34) Business Description

Industry
Traded in Other Exchanges
Address
1 Ecolab Place, Saint Paul, MN, USA, 55102
Ecolab produces and markets cleaning and sanitation products for the industrial manufacturing, hospitality, healthcare, and life sciences markets. The firm is the global market share leader in this category with a wide array of products and services, including dish and laundry washing systems, pest control, and infection control products. Additionally, Ecolab sells customized water management solutions across its end markets. The company has a strong hold on the U.S. market and is growing its presence abroad.

Ecolab (BSP:E1CL34) Headlines

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