The Sherwin-Williams Company

NYSE:SHW Stock Report

Market Cap: US$93.7b

Sherwin-Williams Valuation

Is SHW 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 SHW when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SHW ($371.66) is trading above our estimate of fair value ($364.61)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for SHW. This is calculated by dividing SHW's market cap by their current earnings.
What is SHW's PE Ratio?
PE Ratio36.5x
EarningsUS$2.56b
Market CapUS$93.75b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for SHW vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average37x
ECL Ecolab
33.5x6.6%US$69.2b
DD DuPont de Nemours
67.3x25.2%US$34.0b
PPG PPG Industries
18.9x7.8%US$28.1b
RPM RPM International
28.3x10.9%US$17.4b
SHW Sherwin-Williams
36.5x8.8%US$93.7b

Price-To-Earnings vs Peers: SHW is good value based on its Price-To-Earnings Ratio (36.5x) compared to the peer average (37x).

Price to Earnings Ratio vs Industry

How does SHW's PE Ratio compare vs other companies in the US Chemicals Industry?

7 CompaniesPrice / EarningsEstimated GrowthMarket Cap
FFHL Fuwei Films (Holdings)
2.8xn/aUS$27.11m
BSLK Bolt Projects Holdings
0.06xn/aUS$9.40m
BON Bon Natural Life
2.4xn/aUS$5.36m
GSPI Green Star Products
1.7xn/aUS$1.49m
SHW 36.5xIndustry Avg. 23.2xNo. of Companies7PE01224364860+
7 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: SHW is expensive based on its Price-To-Earnings Ratio (36.5x) compared to the US Chemicals industry average (23.2x).

Price to Earnings Ratio vs Fair Ratio

What is SHW'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.

SHW PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio36.5x
Fair PE Ratio22.4x

Price-To-Earnings vs Fair Ratio: SHW is expensive based on its Price-To-Earnings Ratio (36.5x) compared to the estimated Fair Price-To-Earnings Ratio (22.4x).

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 SHW forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$371.66
US$390.84
+5.2%
12.8%US$450.00US$242.00n/a23
Nov ’25US$357.97
US$389.97
+8.9%
12.7%US$450.00US$242.00n/a23
Oct ’25US$380.58
US$373.18
-1.9%
12.4%US$425.00US$233.00n/a24
Sep ’25US$369.37
US$367.39
-0.5%
11.6%US$425.00US$233.00n/a24
Aug ’25US$350.38
US$361.50
+3.2%
11.3%US$418.00US$233.00n/a24
Jul ’25US$295.79
US$338.25
+14.4%
12.3%US$400.00US$219.00n/a24
Jun ’25US$303.80
US$339.37
+11.7%
12.5%US$400.00US$219.00n/a24
May ’25US$303.34
US$338.27
+11.5%
12.1%US$400.00US$219.00n/a25
Apr ’25US$338.16
US$332.70
-1.6%
13.8%US$402.00US$214.00n/a24
Mar ’25US$335.23
US$322.28
-3.9%
11.3%US$370.00US$214.00n/a24
Feb ’25US$309.08
US$317.27
+2.7%
11.1%US$360.00US$214.00n/a23
Jan ’25US$311.90
US$299.26
-4.1%
11.6%US$360.00US$214.00n/a24
Dec ’24US$282.33
US$286.72
+1.6%
9.9%US$330.00US$214.00n/a24
Nov ’24US$238.91
US$283.35
+18.6%
9.7%US$330.00US$214.00US$357.9724
Oct ’24US$255.05
US$297.75
+16.7%
8.4%US$330.00US$211.00US$380.5824
Sep ’24US$274.82
US$295.84
+7.6%
9.3%US$330.00US$211.00US$369.3725
Aug ’24US$280.20
US$294.76
+5.2%
9.4%US$330.00US$211.00US$350.3825
Jul ’24US$265.52
US$257.76
-2.9%
8.9%US$290.00US$201.00US$295.7925
Jun ’24US$234.89
US$255.17
+8.6%
8.7%US$290.00US$201.00US$303.8024
May ’24US$231.94
US$254.46
+9.7%
8.9%US$290.00US$201.00US$303.3424
Apr ’24US$224.77
US$249.58
+11.0%
9.9%US$290.00US$200.00US$338.1624
Mar ’24US$219.01
US$248.50
+13.5%
9.9%US$290.00US$200.00US$335.2326
Feb ’24US$243.22
US$249.52
+2.6%
10.2%US$300.00US$200.00US$309.0827
Jan ’24US$237.33
US$261.84
+10.3%
11.1%US$300.00US$200.00US$311.9025
Dec ’23US$251.61
US$257.08
+2.2%
10.9%US$300.00US$200.00US$282.3325
Nov ’23US$224.78
US$255.48
+13.7%
10.9%US$300.00US$200.00US$238.9125

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

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