SHW Relative Valuation
SHW's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, SHW is overvalued; if below, it's undervalued.
Historical Valuation
Sherwin-Williams Co (SHW) is now in the Fair zone, suggesting that its current forward PE ratio of 27.65 is considered Fairly compared with the five-year average of 27.78. The fair price of Sherwin-Williams Co (SHW) is between 282.16 to 363.69 according to relative valuation methord.
Relative Value
Fair Zone
282.16-363.69
Current Price：336.00
Fair
27.34
PE
1Y
3Y
5Y
Trailing
Forward
20.24
EV/EBITDA
Sherwin-Williams Co. (SHW) has a current EV/EBITDA of 20.24. The 5-year average EV/EBITDA is 20.64. The thresholds are as follows: Strongly Undervalued below 15.95, Undervalued between 15.95 and 18.30, Fairly Valued between 22.99 and 18.30, Overvalued between 22.99 and 25.34, and Strongly Overvalued above 25.34. The current Forward EV/EBITDA of 20.24 falls within the Historic Trend Line -Fairly Valued range.
22.22
EV/EBIT
Sherwin-Williams Co. (SHW) has a current EV/EBIT of 22.22. The 5-year average EV/EBIT is 22.65. The thresholds are as follows: Strongly Undervalued below 17.61, Undervalued between 17.61 and 20.13, Fairly Valued between 25.17 and 20.13, Overvalued between 25.17 and 27.70, and Strongly Overvalued above 27.70. The current Forward EV/EBIT of 22.22 falls within the Historic Trend Line -Fairly Valued range.
3.41
PS
Sherwin-Williams Co. (SHW) has a current PS of 3.41. The 5-year average PS is 3.30. The thresholds are as follows: Strongly Undervalued below 2.35, Undervalued between 2.35 and 2.82, Fairly Valued between 3.78 and 2.82, Overvalued between 3.78 and 4.25, and Strongly Overvalued above 4.25. The current Forward PS of 3.41 falls within the Historic Trend Line -Fairly Valued range.
24.46
P/OCF
Sherwin-Williams Co. (SHW) has a current P/OCF of 24.46. The 5-year average P/OCF is 23.61. The thresholds are as follows: Strongly Undervalued below 15.10, Undervalued between 15.10 and 19.35, Fairly Valued between 27.87 and 19.35, Overvalued between 27.87 and 32.12, and Strongly Overvalued above 32.12. The current Forward P/OCF of 24.46 falls within the Historic Trend Line -Fairly Valued range.
29.36
P/FCF
Sherwin-Williams Co. (SHW) has a current P/FCF of 29.36. The 5-year average P/FCF is 29.78. The thresholds are as follows: Strongly Undervalued below 17.43, Undervalued between 17.43 and 23.61, Fairly Valued between 35.96 and 23.61, Overvalued between 35.96 and 42.14, and Strongly Overvalued above 42.14. The current Forward P/FCF of 29.36 falls within the Historic Trend Line -Fairly Valued range.
Sherwin-Williams Co (SHW) has a current Price-to-Book (P/B) ratio of 18.89. Compared to its 3-year average P/B ratio of 20.71 , the current P/B ratio is approximately -8.78% higher. Relative to its 5-year average P/B ratio of 22.81, the current P/B ratio is about -17.17% higher. Sherwin-Williams Co (SHW) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 2.57%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 2.87% , the current FCF yield is about -100.00% lower.
18.68
P/B
Median3y
20.71
Median5y
22.81
2.90
FCF Yield
Median3y
2.57
Median5y
2.87
Competitors Valuation Multiple
The average P/S ratio for SHW's competitors is , providing a benchmark for relative valuation. Sherwin-Williams Co Corp (SHW) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of 3.18%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of SHW decreased by 1.34% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 6.16B to 6.36B.
The secondary factor is the Margin Expansion, contributed 0.15%to the performance.
Overall, the performance of SHW in the past 1 year is driven by Revenue Growth. Which is more sustainable.
People Also Watch
FAQ
Is Sherwin-Williams Co (SHW) currently overvalued or undervalued?
What is Sherwin-Williams Co (SHW) fair value?
How does SHW's valuation metrics compare to the industry average?
What is the current P/B ratio for Sherwin-Williams Co (SHW) as of Dec 05 2025?
What is the current FCF Yield for Sherwin-Williams Co (SHW) as of Dec 05 2025?
What is the current Forward P/E ratio for Sherwin-Williams Co (SHW) as of Dec 05 2025?