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

As of today, Sherwin-Williams Co's current share price is $277.76. Sherwin-Williams Co's E10 for the quarter that ended in Jun. 2015 was $6.48. Sherwin-Williams Co's Shiller P/E Ratio for today is 42.86.

SHW' s 10-Year Shiller P/E Ratio Range
Min: 11.46   Max: 49.7
Current: 43.11

11.46
49.7

During the past 13 years, Sherwin-Williams Co's highest Shiller P/E Ratio was 49.70. The lowest was 11.46. And the median was 23.75.

SHW's Shiller P/E Ratiois ranked lower than
77% of the 469 Companies
in the Global Specialty Chemicals industry.

( Industry Median: 21.89 vs. SHW: 43.11 )

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. 2015 was $3.705. 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 $6.48 for the trailing six years ended in Jun. 2015.


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
=277.76/6.48
=42.86

* 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 Dec14 is calculated as:

For example, Sherwin-Williams Co's adjusted earnings per share data for the three months ended in Jun. 2015 was:

Adj_EPS=Earnigns per Share/CPI of Jun. 2015*CPI of Current
=3.7/238.408*238.709
=3.705

Since most companies do not have as long as 10 years history, GuruFocus uses 6 years to do the calculation.

Current CPI = 238.709.

Sherwin-Williams Co Quarterly Data

201303201306201309201312201403201406201409201412201503201506
per share eps 1.1102.4602.5501.1441.1402.9403.3501.3791.3803.700
CPI 232.773233.504234.149233.049236.293238.343238.031234.812236.119238.408
Adj_EPS 1.1382.5152.6001.1721.1522.9453.3601.4021.3953.705
201009201012201103201106201109201112201203201206201209201212
per share eps 1.6000.6760.6301.6601.7100.1430.9502.1702.2400.655
CPI 218.439219.179223.467225.722226.889225.672229.392229.478231.407229.601
Adj_EPS 1.7480.7360.6731.7561.7990.1510.9892.2572.3110.681
200909200912201003201006
per share eps 1.5100.5910.3001.640
CPI 215.969215.949217.631217.965
Adj_EPS 1.6690.6530.3291.796

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

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
ShillerPE 24.0524.4818.2516.2915.5919.9020.3332.8435.9345.11

Sherwin-Williams Co Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
ShillerPE 35.5035.8335.9735.9337.7037.5737.8045.1146.5042.41
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