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Sherwin-Williams Co (NYSE:SHW)
Shiller P/E Ratio
41.07 (As of Today)

As of today, Sherwin-Williams Co's current share price is $226.97. Sherwin-Williams Co's E10 for the quarter that ended in Jun. 2014 was $5.53. Sherwin-Williams Co's Shiller P/E Ratio for today is 41.07.

SHW' s 10-Year Shiller P/E Ratio Range
Min: 11.55   Max: 41.04
Current: 41.07

11.55
41.04

During the past 13 years, Sherwin-Williams Co's highest Shiller P/E Ratio was 41.04. The lowest was 11.55. And the median was 23.67.

SHW's Shiller P/E Ratiois ranked higher than
77% of the 722 Companies
in the Global Building Materials industry.

( Industry Median: 407.18 vs. SHW: 41.07 )

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller P/E calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years.

Sherwin-Williams Co's adjusted earnings per share data for the three months ended in Jun. 2014 was $2.924. Since most companies do not have as long as 10 years history, here we use 6 years to calculate. Add all the adjusted EPS for the past 6 years together and divide 6 will get our E10, which is $5.53 for the trailing six years ended in Jun. 2014.


Definition

For the Shiller P/E, the earnings of the past 10 years are inflation-adjusted and averaged. The result is used for P/E calculation. Since it looks at the average over the last 10 years, the Shiller P/E is also called PE10.

The Shiller P/E was first used by professor Robert Shiller to measure the valuation of the overall market. The same calculation is applied here to individual companies.

Sherwin-Williams Co's Shiller P/E Ratio for today is calculated as

Shiller P/E Ratio=Share Price/E10
=226.97/5.53
=41.04

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Sherwin-Williams Co's E10 for the fiscal year that ended in Dec13 is calculated as:

For example, Sherwin-Williams Co's adjusted earnings per share data for the three months ended in Jun. 2014 was:

Adj_EPS=Earnigns per Share/CPI of Jun. 2014*CPI of Current
=2.94/238.343*237.056
=2.924

Since most companies do not have as long as 10 years history, here we use 6 years to calculate:

Current CPI = 237.056.

Sherwin-Williams Co Quarterly Data

201203201206201209201212201303201306201309201312201403201406
per share eps 0.9502.1702.2400.6681.1102.4602.5501.1671.1402.940
CPI 229.392229.478231.407229.601232.773233.504234.149233.049236.293238.343
Adj_EPS 0.9822.2422.2950.6901.1302.4972.5821.1871.1442.924
200909200912201003201006201009201012201103201106201109201112
per share eps 1.5100.5910.3001.6401.6000.6760.6301.6601.7100.143
CPI 215.969215.949217.631217.965218.439219.179223.467225.722226.889225.672
Adj_EPS 1.6570.6490.3271.7841.7360.7310.6681.7431.7870.150
200809200812200903200906
per share eps 1.5000.4240.3201.350
CPI 218.783210.228212.709215.693
Adj_EPS 1.6250.4780.3571.484

Add all the adjusted EPS together and divide 6 will get our E10.


Explanation

Compared with the regular P/E ratio, which works poorly for cyclical businesses, the Shiller P/E smoothed out the fluctuations of profit margins during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Shiller P/E should give similar results to regular P/E.

Compared with the P/S ratio, the Shiller P/E makes the comparison between different industries more meaningful.


Be Aware

The Shiller P/E assumes that over the long term, businesses and profitability revert to their means. If a company’s business model does not work in the future compared with the past, the Shiller P/E and P/S ratio will give false valuations.


Related Terms

P/E Ratio, P/B Ratio, P/S Ratio, Price-to-Free-Cash-Flow ratio, E10


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Sherwin-Williams Co Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ShillerPE 27.3924.0024.4418.2116.2615.5619.8520.2932.7836.17

Sherwin-Williams Co Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
ShillerPE 24.2328.8031.2532.7835.4236.0835.8836.1737.5737.44
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