Ecolab Inc (ECL) is overvalued and Sherwin-Williams Co (SHW) is overvalued.
Both trade above our estimate of their intrinsic value. SHW is the closer of the two: -125%, against -131% for ECL.
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
Discounting its cash flows at 9.7% (average of 3 methods) values the shares at $146.16; the price of $328.35 is 125% above that value, and 73% of that value comes from beyond year five.
Leak Score 71/100 on 9 of 12 signals
| Metric | ECL | SHW |
|---|---|---|
| Verdict | Overvalued | Overvalued |
| Price | $276.22 | $328.35 |
| Intrinsic value | $119.68 | $146.16 |
| Margin of safety | -131% | -125% |
| Leak Score | 52/100 (10/12) | 71/100 (9/12) |
| Market cap | $77.4B | $79.7B |
| Revenue growth, 5 years | 6.4% | 5.1% |
| Operating margin | 18.2% | 16.5% |
| Net margin | 12.6% | 11.0% |
| Return on equity | 21.9% | 65.1% |
| Debt to equity | 1.38 | 3.90 |
| P/E | 37.1x | 30.3x |
| Forward P/E | 29.4x | 24.2x |
| P/B | 7.7x | 20.7x |
| Dividend yield | 1.1% | 0.9% |