Ecolab Inc (ECL) is overvalued and International Flavors & Fragrances Inc (IFF) is overvalued.
Both trade above our estimate of their intrinsic value. ECL is the closer of the two: -131%, against -717% for IFF.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 9.2% (average of 3 methods) values the shares at $119.68; the price of $276.22 is 131% above that value, and 75% of that value comes from beyond year five.
Leak Score 52/100 on 10 of 12 signals
Its through-the-cycle earnings (8.9% median margin), capitalised at 8.8% with no growth, values the shares at $10.51; the price of $85.79 is 717% above that value.
Leak Score 24/100 on 9 of 12 signals
| Metric | ECL | IFF |
|---|---|---|
| Verdict | Overvalued | Overvalued |
| Price | $276.22 | $85.79 |
| Intrinsic value | $119.68 | $10.51 |
| Margin of safety | -131% | -717% |
| Leak Score | 52/100 (10/12) | 24/100 (9/12) |
| Market cap | $77.4B | $21.9B |
| Revenue growth, 5 years | 6.4% | 16.5% |
| Operating margin | 18.2% | 10.5% |
| Net margin | 12.6% | 2.8% |
| Return on equity | 21.9% | 1.8% |
| Debt to equity | 1.38 | 0.45 |
| P/E | 37.1x | 79.6x |
| Forward P/E | 29.4x | 21.5x |
| P/B | 7.7x | 1.6x |
| Dividend yield | 1.1% | 1.9% |