ECL (Ecolab) GF Value Rank : 3 (As of Apr. 21, 2025)

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What is Ecolab GF Value Rank?

Ecolab has the GF Value Rank of 3.

GF Value Rank evaluates the exclusive GuruFocus valuation and performance of a stock, rated on a scale from 1 to 10. It is determined by the price-to-GF-Value (P/GF Value) ratio, a proprietary metric calculated based on historical multiples along with an adjustment factor based on a company's past returns and growth and future estimates of the business' performance.

GuruFocus found that for valuation, we cannot simply give stocks a better GF Value rank simply because they have a lower P/GF Value ratio. Backtesting shows that over the long term, the two worst-performing groups are the most expensive group (with the highest P/GF Value ratio) and the least expensive group (with the lowest P/GF Value ratio).

We can understand why the most expensive group underperforms. We were initially puzzled by the underperformance of the least expensive group, but we realized there is a reason why some stocks are super cheap. If they look too undervalued, it is often because the businesses behind them are poor quality. The market realized this and gave them low valuations. In a way, the market is efficient.

After multiple backtesting analyses, we granted the stocks in third-cheapest percentile the highest GF Value rank, as they have performed the best over a full market cycle. Stock performance is actually not as sensitive to valuation as it is to growth and profitability. On average, the companies in the 20%-50% valuation groups have similar performances. Therefore, we should avoid the most expensive and the least expensive stocks. We can be more tolerant of valuation.

A higher score indicates a stock with a relatively low valuation and substantial potential for outperformance. Conversely, a lower score often reflects stocks that are either highly overvalued or deeply undervalued, both of which tend to underperform.

Please click GF Score to see more details on the GF Score's 5 Key Aspects of Analysis.

Competitive Comparison of Ecolab's GF Value Rank

For the Specialty Chemicals subindustry, Ecolab's GF Value Rank, along with its competitors' market caps and GF Value Rank 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 GF Value Rank Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Ecolab's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Ecolab's GF Value Rank falls into.

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Ecolab GF Value Rank Related Terms

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Ecolab Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Chemicals » Ecolab Inc (NYSE:ECL) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

ECL:Mexico 1ECL:Italy 0IFA:UK ECJ:Germany ECJ:Germany ECL:Austria

Address

1 Ecolab Place, Saint Paul, MN, USA, 55102

Website

https://www.ecolab.com

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 US market and is growing its presence abroad.

Executives

Larry L Berger	officer: Chief Technical Officer & SVP	1 ECOLAB PLACE, SAINT PAUL MN 55102
Jennifer J Bradway	officer: SVP & CORPORATE CONTROLLER	1 ECOLAB PLACE, ST. PAUL MN 55102
Tracy B Mckibben	director	100 RIVERSIDE BOULEVARD, #3S, NEW YORK NY 10069
David Maclennan	director	14701 CHARLSON ROAD, EDEN PRAIRIE MN 55347
Arthur J Higgins	director	C/O ZIMMER, INC., P.O. BOX 708, WARSAW IN 46580
Machiel Duijser	officer: EVP & CSCO	1 ECOLAB PLACE, ST. PAUL MN 55102
Gates William H Iii	10 percent owner	2365 CARILLON POINT, KIRKLAND WA 98033
De Boo Alexander A.	officer: EVP & PRES - GLOBAL MARKETS	1 ECOLAB PLACE, SAINT PAUL MN 55102
Christophe Beck	officer: Executive V.P., Instit. NA	370 WABASHA STREET NORTH, SAINT PAUL MN 55102
Victoria Reich	director	UNITED STATIONERS SUPPLY CO, ONE PARKWAY NORTH BLVD SUITE 100, LAKE FOREST IL 60045
Gregory B Cook	officer: EVP & PRES - INST GROUP	1 ECOLAB PLACE, SAINT PAUL MN 55102
Nicholas J. Alfano	officer: EVP & PRES - GLOBAL INDUSTRIAL	1 ECOLAB PLACE, SAINT PAUL MN 55102
Laurie M Marsh	officer: Senior VP - Human Resources	1601 W. DIEHL ROAD, NAPERVILLE IL 60563
Angela M Busch	officer: SVP - Corporate Development	1 ECOLAB PLACE, SAINT PAUL MN 55102
Nicolas A Granucci	officer: EVP & PRES - GLOBAL PEST	1 ECOLAB PLACE, SAINT PAUL MN 55102