What valuation methods were used to assess Ecolab's stock, and what conclusion did they reach?

The article used discounted cash flow (DCF) and price-to-earnings (P/E) analyses to assess Ecolab's (ECL) valuation. Both methods concluded that Ecolab is overvalued: the DCF model indicates a 23.5% overvaluation, and its P/E ratio of 34.35x exceeds both the industry average and Simply Wall St's proprietary 'Fair Ratio' of 24.63x.

At what price was Ecolab trading when this valuation analysis was conducted, and how does that compare to its fair value estimates?

Ecolab was trading around US$256.99 at the time of the analysis. According to the DCF model, this represents a 23.5% overvaluation relative to its estimated fair value, implying the model-derived fair price is approximately US$208.90 (calculated as $256.99 ÷ 1.235). The P/E analysis reinforces this view by showing its current multiple of 34.35x is meaningfully higher than the benchmark 'Fair Ratio' of 24.63x, further suggesting the market price lacks fundamental support at that level.