The Sherwin-Williams Company

NYSE:SHW Stock Report

Market Cap: US$90.5b

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.

Discounted Cash Flow
Simply Wall St
US$356.39
Fair Value
2.6% overvalued intrinsic discount
23
Number of Analysts

Below Fair Value: SHW ($365.55) is trading above our estimate of fair value ($356.39)

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 Ratio34.2x
EarningsUS$2.68b
Market CapUS$90.46b

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 Average35.6x
ECL Ecolab
35x6.3%US$69.9b
PPG PPG Industries
19.1x7.4%US$28.4b
DD DuPont de Nemours
63.1x23.7%US$32.0b
RPM RPM International
25.2x9.1%US$16.2b
SHW Sherwin-Williams
34.2x6.1%US$90.5b

Price-To-Earnings vs Peers: SHW is good value based on its Price-To-Earnings Ratio (34.2x) compared to the peer average (35.6x).

Price to Earnings Ratio vs Industry

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

6 CompaniesPrice / EarningsEstimated GrowthMarket Cap
FFHL Fuwei Films (Holdings)
2.8xn/aUS$27.11m
BSLK Bolt Projects Holdings
0.06xn/aUS$9.69m
GSPI Green Star Products
1.4xn/aUS$1.79m
VYST Vystar
1.4xn/aUS$1.38m
SHW 34.2xIndustry Avg. 23.5xNo. of Companies10PE01224364860+
6 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: SHW is expensive based on its Price-To-Earnings Ratio (34.2x) compared to the US Chemicals industry average (23.5x).

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 Ratio34.2x
Fair PE Ratio20x

Price-To-Earnings vs Fair Ratio: SHW is expensive based on its Price-To-Earnings Ratio (34.2x) compared to the estimated Fair Price-To-Earnings Ratio (20x).

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$365.55
US$385.01
+5.3%
14.0%US$445.00US$242.00n/a23
Jan ’26US$339.93
US$386.49
+13.7%
15.0%US$450.00US$242.00n/a23
Dec ’25US$397.40
US$390.84
-1.7%
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$214.00US$339.9324
Dec ’24US$282.33
US$286.72
+1.6%
9.9%US$330.00US$214.00US$397.4024
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
Analyst Price Target
Consensus Narrative from 23 Analysts
US$385.01
Fair Value
5.1% undervalued intrinsic discount
23
Number of Analysts

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

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/01/30 07:07
End of Day Share Price 2025/01/30 00:00
Earnings2024/12/31
Annual Earnings2024/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

The Sherwin-Williams Company is covered by 52 analysts. 17 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
William SeleskyArgus Research Company
Ghansham PanjabiBaird
Ishan MajumdarBaptista Research