Ecolab

Methodology

Ecolab's water treatment and hygiene services business generates highly predictable earnings from recurring revenue contracts with restaurants, hotels, and industrial facilities. The consumables-based model with on-site service creates strong customer retention. This calculation works well given consistent earnings growth from pricing, new customer additions, and operational efficiency.

Methodology

Ecolab typically commands premium PEG ratios reflecting its mission-critical services, recurring revenue model, and operational excellence. The company's customer relationships and technical expertise create high switching costs. PEG appears expensive but reflects business quality and consistent compounding through economic cycles.

Methodology

Ecolab pays a modest dividend with dividend aristocrat status, making PEGY moderately more attractive than PEG for this quality industrial. The company balances dividends with strategic acquisitions to expand service offerings. Total return combines reliable dividend growth with steady earnings compounding from essential hygiene and water services.