SHW Valuation

Sherwin-Williams Co

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349.560

-0.65(-0.186%)1D

Overview
Forecast
Valuation
Earnings

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 29.06 is considered Fairly compared with the five-year average of 27.06. The fair price of Sherwin-Williams Co (SHW) is between 262.12 to 368.01 according to relative valuation methord.

Relative Value

Fair Zone

262.12-368.01

Current Price：350.21

Fair

29.06

Trailing

Forward

21.13

EV/EBITDA

Sherwin-Williams Co. (SHW) has a current EV/EBITDA of 21.13. The 5-year average EV/EBITDA is 20.55. The thresholds are as follows: Strongly Undervalued below 15.76, Undervalued between 15.76 and 18.16, Fairly Valued between 22.95 and 18.16, Overvalued between 22.95 and 25.35, and Strongly Overvalued above 25.35. The current Forward EV/EBITDA of 21.13 falls within the Historic Trend Line -Fairly Valued range.

23.27

EV/EBIT

Sherwin-Williams Co. (SHW) has a current EV/EBIT of 23.27. The 5-year average EV/EBIT is 22.57. The thresholds are as follows: Strongly Undervalued below 17.44, Undervalued between 17.44 and 20.00, Fairly Valued between 25.13 and 20.00, Overvalued between 25.13 and 27.70, and Strongly Overvalued above 27.70. The current Forward EV/EBIT of 23.27 falls within the Historic Trend Line -Fairly Valued range.

3.69

Sherwin-Williams Co. (SHW) has a current PS of 3.69. The 5-year average PS is 3.28. The thresholds are as follows: Strongly Undervalued below 2.33, Undervalued between 2.33 and 2.80, Fairly Valued between 3.76 and 2.80, Overvalued between 3.76 and 4.24, and Strongly Overvalued above 4.24. The current Forward PS of 3.69 falls within the Historic Trend Line -Fairly Valued range.

25.28

P/OCF

Sherwin-Williams Co. (SHW) has a current P/OCF of 25.28. The 5-year average P/OCF is 23.53. The thresholds are as follows: Strongly Undervalued below 14.96, Undervalued between 14.96 and 19.25, Fairly Valued between 27.82 and 19.25, Overvalued between 27.82 and 32.10, and Strongly Overvalued above 32.10. The current Forward P/OCF of 25.28 falls within the Historic Trend Line -Fairly Valued range.

31.13

P/FCF

Sherwin-Williams Co. (SHW) has a current P/FCF of 31.13. The 5-year average P/FCF is 29.63. The thresholds are as follows: Strongly Undervalued below 17.14, Undervalued between 17.14 and 23.38, Fairly Valued between 35.88 and 23.38, Overvalued between 35.88 and 42.12, and Strongly Overvalued above 42.12. The current Forward P/FCF of 31.13 falls within the Historic Trend Line -Fairly Valued range.

Sherwin-Williams Co (SHW) has a current Price-to-Book (P/B) ratio of 19.77. Compared to its 3-year average P/B ratio of 20.99 , the current P/B ratio is approximately -5.81% higher. Relative to its 5-year average P/B ratio of 22.66, the current P/B ratio is about -12.75% higher. Sherwin-Williams Co (SHW) has a Forward Free Cash Flow (FCF) yield of approximately 2.47%. Compared to its 3-year average FCF yield of 2.49%, the current FCF yield is approximately -0.48% lower. Relative to its 5-year average FCF yield of 2.96% , the current FCF yield is about -16.40% lower.

19.77

P/B

Median3y

20.99

Median5y

22.66

2.47

FCF Yield

Median3y

2.49

Median5y

2.96

Competitors Valuation Multiple

The average P/S ratio for SHW's competitors is 2.40, providing a benchmark for relative valuation. Sherwin-Williams Co Corp (SHW) exhibits a P/S ratio of 3.69, which is 53.77% above the industry average. Given its robust revenue growth of 0.69%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

RPM International Inc

Axalta Coating Systems Ltd

Performance Decomposition

Market capitalization of SHW decreased by 8.24% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 32.52 to 34.75.

The secondary factor is the Revenue Growth, contributed 0.69%to the performance.

Overall, the performance of SHW in the past 1 year is driven by P/E Change. Which is more unsustainable.

0.69%

6.27B → 6.31B

Revenue Growth

-15.79%

14.19 → 11.95

Margin Expansion

6.86%

32.52 → 34.75

P/E Change

-8.24%