The Sherwin-Williams Company

DB:SJ3 Stock Report

Market Cap: €93.6b

Sherwin-Williams Valuation

Is SJ3 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of SJ3 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SJ3 (€372.25) is trading above our estimate of fair value (€366.81)

Significantly Below Fair Value: SJ3 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SJ3?

Key metric: As SJ3 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for SJ3. This is calculated by dividing SJ3's market cap by their current earnings.
What is SJ3's PE Ratio?
PE Ratio38.1x
EarningsUS$2.56b
Market CapUS$97.46b

Price to Earnings Ratio vs Peers

How does SJ3's PE Ratio compare to its peers?

The above table shows the PE ratio for SJ3 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average44.6x
SY1 Symrise
37.8x13.2%€14.8b
EVK Evonik Industries
35.8x33.1%€8.2b
WCH Wacker Chemie
28.3x37.0%€3.5b
BAS BASF
76.5x34.2%€38.0b
SJ3 Sherwin-Williams
38.1x8.8%€97.5b

Price-To-Earnings vs Peers: SJ3 is good value based on its Price-To-Earnings Ratio (38.1x) compared to the peer average (44.6x).

Price to Earnings Ratio vs Industry

How does SJ3's PE Ratio compare vs other companies in the European Chemicals Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
SJ3 38.1xIndustry Avg. 17.1xNo. of Companies11PE01224364860+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: SJ3 is expensive based on its Price-To-Earnings Ratio (38.1x) compared to the European Chemicals industry average (17.1x).

Price to Earnings Ratio vs Fair Ratio

What is SJ3's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

SJ3 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio38.1x
Fair PE Ratio20.4x

Price-To-Earnings vs Fair Ratio: SJ3 is expensive based on its Price-To-Earnings Ratio (38.1x) compared to the estimated Fair Price-To-Earnings Ratio (20.4x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst SJ3 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€372.25
€362.00
-2.8%
12.8%€416.79€224.14n/a23
Nov ’25€328.80
€360.18
+9.5%
12.7%€415.62€223.51n/a23
Oct ’25€340.65
€335.15
-1.6%
12.4%€381.69€209.26n/a24
Sep ’25€324.45
€332.41
+2.5%
11.6%€384.54€210.82n/a24
Aug ’25€324.20
€335.00
+3.3%
11.3%€387.36€215.92n/a24
Jul ’25€276.40
€315.01
+14.0%
12.3%€372.52€203.95n/a24
Jun ’25€277.75
€314.22
+13.1%
12.5%€370.36€202.77n/a24
May ’25€283.85
€316.08
+11.4%
12.1%€373.76€204.63n/a25
Apr ’25€321.60
€308.41
-4.1%
13.8%€372.65€198.38n/a24
Mar ’25€305.60
€297.14
-2.8%
11.3%€341.14€197.31n/a24
Feb ’25€280.20
€292.94
+4.5%
11.1%€332.39€197.59n/a23
Jan ’25€281.20
€272.00
-3.3%
11.6%€327.20€194.50n/a24
Dec ’24€254.00
€261.32
+2.9%
9.9%€300.76€195.04n/a24
Nov ’24€224.30
€268.13
+19.5%
9.7%€312.28€202.51€328.8024
Oct ’24€240.70
€281.64
+17.0%
8.4%€312.15€199.58€340.6524
Sep ’24€249.20
€273.86
+9.9%
9.3%€305.48€195.32€324.4525
Aug ’24€249.50
€268.38
+7.6%
9.4%€300.47€192.12€324.2025
Jul ’24€244.00
€236.21
-3.2%
8.9%€265.76€184.20€276.4025
Jun ’24€211.60
€238.76
+12.8%
8.7%€271.35€188.08€277.7524
May ’24€209.60
€231.94
+10.7%
8.9%€264.34€183.21€283.8524
Apr ’24€197.68
€230.09
+16.4%
9.9%€267.35€184.38€321.6024
Mar ’24€205.80
€234.26
+13.8%
9.9%€273.38€188.54€305.6026
Feb ’24€215.55
€229.53
+6.5%
10.2%€275.97€183.98€280.2027
Jan ’24€224.25
€247.07
+10.2%
11.1%€283.08€188.72€281.2025
Dec ’23€236.60
€248.80
+5.2%
10.9%€290.34€193.56€254.0025
Nov ’23€226.80
€258.60
+14.0%
10.9%€303.66€202.44€224.3025

Analyst Forecast: Target price is less than 20% higher than the current share price.

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