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Ecolab (FRA:ECJ) Cyclically Adjusted PS Ratio : 4.17 (As of Apr. 27, 2024)


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What is Ecolab Cyclically Adjusted PS Ratio?

As of today (2024-04-27), Ecolab's current share price is €205.30. Ecolab's Cyclically Adjusted Revenue per Share for the quarter that ended in Dec. 2023 was €49.23. Ecolab's Cyclically Adjusted PS Ratio for today is 4.17.

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

FRA:ECJ' s Cyclically Adjusted PS Ratio Range Over the Past 10 Years
Min: 2.55   Med: 3.6   Max: 5.18
Current: 4.06

During the past years, Ecolab's highest Cyclically Adjusted PS Ratio was 5.18. The lowest was 2.55. And the median was 3.60.

FRA:ECJ's Cyclically Adjusted PS Ratio is ranked worse than
84.87% of 1190 companies
in the Chemicals industry
Industry Median: 1.18 vs FRA:ECJ: 4.06

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 PS Ratio. The Cyclically Adjusted Revenue per Share is the average of the inflation adjusted revenue per share of a company over the past 10 years.

Ecolab's adjusted revenue per share data for the three months ended in Dec. 2023 was €12.592. Add all the adjusted revenue per share for the past 10 years together and divide 10 will get our Cyclically Adjusted Revenue per Share, which is €49.23 for the trailing ten years ended in Dec. 2023.

Shiller PE for Stocks: The True Measure of Stock Valuation


Ecolab Cyclically Adjusted PS Ratio Historical Data

The historical data trend for Ecolab's Cyclically Adjusted PS 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 PS Ratio Chart

Ecolab Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Cyclically Adjusted PS Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.41 4.76 4.73 2.76 3.66

Ecolab Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Cyclically Adjusted PS 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 2.76 3.09 3.45 3.11 3.66

Competitive Comparison of Ecolab's Cyclically Adjusted PS Ratio

For the Specialty Chemicals subindustry, Ecolab's Cyclically Adjusted PS Ratio, along with its competitors' market caps and Cyclically Adjusted PS 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 PS Ratio Distribution in the Chemicals Industry

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

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



Ecolab Cyclically Adjusted PS Ratio Calculation

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

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

Cyclically Adjusted PS Ratio=Share Price/ Cyclically Adjusted Revenue per Share
=205.30/49.23
=4.17

* 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 Revenue per Share for the quarter that ended in Dec. 2023 is calculated as:

For example, Ecolab's adjusted Revenue per Share data for the three months ended in Dec. 2023 was:

Adj_RevenuePerShare=Revenue per Share/CPI of Dec. 2023 (Change)*Current CPI (Dec. 2023)
=12.592/129.4194*129.4194
=12.592

Current CPI (Dec. 2023) = 129.4194.

Ecolab Quarterly Data

Revenue per Share CPI Adj_RevenuePerShare
201403 7.871 99.695 10.218
201406 8.605 100.560 11.075
201409 9.379 100.428 12.087
201412 9.768 99.070 12.760
201503 10.049 99.621 13.055
201506 10.029 100.684 12.891
201509 10.236 100.392 13.196
201512 10.403 99.792 13.492
201603 9.324 100.470 12.011
201606 9.957 101.688 12.672
201609 10.203 101.861 12.963
201612 10.751 101.863 13.659
201703 10.023 102.862 12.611
201706 10.471 103.349 13.112
201709 10.193 104.136 12.668
201712 10.509 104.011 13.076
201803 9.617 105.290 11.821
201806 10.768 106.317 13.108
201809 10.945 106.507 13.300
201812 3.958 105.998 4.833
201903 10.613 107.251 12.807
201906 9.602 108.070 11.499
201909 9.998 108.329 11.944
201912 9.982 108.420 11.915
202003 9.343 108.902 11.103
202006 8.181 108.767 9.734
202009 8.886 109.815 10.472
202012 8.725 109.897 10.275
202103 8.391 111.754 9.717
202106 9.089 114.631 10.262
202109 9.760 115.734 10.914
202112 10.289 117.630 11.320
202203 10.296 121.301 10.985
202206 11.819 125.017 12.235
202209 12.944 125.227 13.377
202212 12.143 125.222 12.550
202303 11.668 127.348 11.858
202306 12.419 128.729 12.486
202309 12.927 129.860 12.883
202312 12.592 129.419 12.592

Add all the adjusted revenue per share together and divide 10 will get our Cyclically Adjusted Revenue 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  (FRA:ECJ) Cyclically Adjusted PS Ratio Explanation

Compared with the regular PS Ratio, which works poorly for cyclical businesses, the Cyclically Adjusted PS Ratio smoothed out the fluctuations of revenue 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 PS Ratio should give similar results to regular PS Ratio.


Ecolab Cyclically Adjusted PS Ratio Related Terms

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


Ecolab (FRA:ECJ) 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.

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