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Ecolab, Inc. – Polish and Other Sanitation Good Manufacturing
a trusted partner at more than one million customer locations, ecolab (ecl) is the global leader in water, hygiene and energy technologies and services that protect people and vital resources. with 2013 sales of $13 billion and 45,000 associates, ecolab delivers comprehensive solutions and on-site service to promote safe food, maintain clean environments, optimize water and energy use, and improve operational efficiencies for customers in more than 170 countries around the world. for more ecolab news and information, visit www.ecolab.com, or follow us on twitter.com/ecolab and facebook.com/ecolab.
Analysis Results
Intrinsic Value $88.63
Latest Price $171.98
Relative Value 94% overvalued
Thoughts on this result? Let us know.
Cash Flow (Billions)
Analysis Parameters
New Ticker
Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 1.2%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 8.4%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 1.2%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2023 1.76 1.63
2024 1.79 1.52
2025 1.81 1.42
2026 1.83 1.32
2027 1.85 1.24
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 29.5 billion. This corresponds to a present value of 18.1 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 7.13 billion. Adding in the terminal value gives a total present value of 25.3 billion.

There are presently 285.0 million outstanding shares, so the intrinsic value per share is 88.63.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 5,494,200,000
Current Cash 598,600,000
Current Liabilities 4,210,400,000
Current Debt 505,100,000
Non-Cash Working Capital (NCWC) 1,190,300,000
Change in NCWC 5,300,000
EBIT 1,703,000,000
Tax Provision 234,500,000
Depreciation and Amortization 938,700,000
Capital Expenditure -712,800,000
Unlevered Free Cash Flow 1,636,929,269
Current Assets 4,687,100,000
Current Cash 359,900,000
Current Liabilities 3,553,200,000
Current Debt 411,000,000
Non-Cash Working Capital (NCWC) 1,185,000,000
Change in NCWC 242,700,000
EBIT 1,701,200,000
Tax Provision 270,200,000
Depreciation and Amortization 843,100,000
Capital Expenditure -643,000,000
Unlevered Free Cash Flow 1,818,965,181
Current Assets 5,117,400,000
Current Cash 1,260,200,000
Current Liabilities 2,932,200,000
Current Debt 17,300,000
Non-Cash Working Capital (NCWC) 942,300,000
Change in NCWC -449,700,000
EBIT 1,575,300,000
Tax Provision 176,600,000
Depreciation and Amortization 812,700,000
Capital Expenditure -489,000,000
Unlevered Free Cash Flow 1,209,763,251
Current Assets 4,828,400,000
Current Cash 186,400,000
Current Liabilities 3,630,600,000
Current Debt 380,600,000
Non-Cash Working Capital (NCWC) 1,392,000,000
Change in NCWC -229,000,000
EBIT 2,225,400,000
Tax Provision 322,700,000
Depreciation and Amortization 973,300,000
Capital Expenditure -800,600,000
Unlevered Free Cash Flow 1,790,914,429
Current Assets 4,677,700,000
Current Cash 114,700,000
Current Liabilities 3,685,600,000
Current Debt 743,600,000
Non-Cash Working Capital (NCWC) 1,621,000,000
Change in NCWC 103,400,000
EBIT 2,073,700,000
Tax Provision 364,300,000
Depreciation and Amortization 938,300,000
Capital Expenditure -847,100,000
Unlevered Free Cash Flow 1,849,675,978
Current Assets 4,596,400,000
Current Cash 211,400,000
Current Liabilities 3,431,800,000
Current Debt 564,400,000
Non-Cash Working Capital (NCWC) 1,517,600,000
Change in NCWC 43,700,000
EBIT 2,016,100,000
Tax Provision 242,400,000
Depreciation and Amortization 893,300,000
Capital Expenditure -868,600,000
Unlevered Free Cash Flow 1,807,583,272
Current Assets 4,279,400,000
Current Cash 327,400,000
Current Liabilities 3,019,400,000
Current Debt 541,300,000
Non-Cash Working Capital (NCWC) 1,473,900,000
Change in NCWC -321,700,000
EBIT 1,954,500,000
Tax Provision 403,300,000
Depreciation and Amortization 850,700,000
Capital Expenditure -756,800,000
Unlevered Free Cash Flow 1,249,088,602
Current Assets 4,447,500,000
Current Cash 92,800,000
Current Liabilities 4,764,400,000
Current Debt 2,205,300,000
Non-Cash Working Capital (NCWC) 1,795,600,000
Change in NCWC -184,700,000
EBIT 1,976,100,000
Tax Provision 300,500,000
Depreciation and Amortization 859,500,000
Capital Expenditure -815,200,000
Unlevered Free Cash Flow 1,385,052,621
Current Assets 4,871,100,000
Current Cash 209,600,000
Current Liabilities 4,386,600,000
Current Debt 1,705,400,000
Non-Cash Working Capital (NCWC) 1,980,300,000
Change in NCWC 248,800,000
EBIT 2,023,800,000
Tax Provision 476,200,000
Depreciation and Amortization 872,000,000
Capital Expenditure -793,900,000
Unlevered Free Cash Flow 1,783,263,848
Current Assets 4,698,400,000
Current Cash 339,200,000
Current Liabilities 3,488,700,000
Current Debt 861,000,000
Non-Cash Working Capital (NCWC) 1,731,500,000
Change in NCWC 244,200,000
EBIT 1,731,900,000
Tax Provision 324,700,000
Depreciation and Amortization 816,200,000
Capital Expenditure -662,300,000
Unlevered Free Cash Flow 1,696,858,253
Current Assets 4,892,000,000
Current Cash 1,157,800,000
Current Liabilities 3,052,700,000
Current Debt 805,800,000
Non-Cash Working Capital (NCWC) 1,487,300,000
Change in NCWC 78,200,000
EBIT 1,435,000,000
Tax Provision 311,300,000
Depreciation and Amortization 714,500,000
Capital Expenditure -607,500,000
Unlevered Free Cash Flow 1,179,043,077

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