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

As of today, Sherwin-Williams Co's current share price is $295.19. Sherwin-Williams Co's E10 for the quarter that ended in Mar. 2016 was $6.29. Sherwin-Williams Co's Shiller P/E Ratio for today is 46.93.

SHW' s Shiller P/E Ratio Range Over the Past 10 Years
Min: 15.35   Max: 54.26
Current: 46.92

15.35
54.26

During the past 13 years, Sherwin-Williams Co's highest Shiller P/E Ratio was 54.26. The lowest was 15.35. And the median was 28.23.

SHW's Shiller P/E Ratio is ranked lower than
71% of the 171 Companies
in the Global Specialty Chemicals industry.

( Industry Median: 31.40 vs. SHW: 46.92 )

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 Mar. 2016 was $1.570. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $6.29 for the trailing ten years ended in Mar. 2016.


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
=295.19/6.29
=46.93

* 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 Dec15 is calculated as:

For example, Sherwin-Williams Co's adjusted earnings per share data for the three months ended in Mar. 2016 was:

Adj_EPS=Earnigns per Share/CPI of Mar. 2016 (Change)*Current CPI (Mar. 2016)
=1.57/238.132*238.132
=1.570

Current CPI (Mar. 2016) = 238.132.

Sherwin-Williams Co Quarterly Data

201403201406201409201412201503201506201509201512201603201606
per share eps 1.1402.9403.3501.3901.3803.7003.9702.1201.5703.990
CPI 236.293238.343238.031234.812236.119238.638237.945236.525238.132240.724
Adj_EPS 1.1492.9373.3511.4101.3923.6923.9732.1341.5703.947
201109201112201203201206201209201212201303201306201309201312
per share eps 1.7100.1600.9502.1702.2400.6501.1102.4602.5501.150
CPI 226.889225.672229.392229.478231.407229.601232.773233.504234.149233.049
Adj_EPS 1.7950.1690.9862.2522.3050.6741.1362.5092.5931.175
200903200906200909200912201003201006201009201012201103201106
per share eps 0.3201.3501.5100.6100.3001.6401.6000.6800.6301.660
CPI 212.709215.693215.969215.949217.631217.965218.439219.179223.467225.722
Adj_EPS 0.3581.4901.6650.6730.3281.7921.7440.7390.6711.751
200609200612200703200706200709200712200803200806200809200812
per share eps 1.3000.7300.8301.5201.5500.8200.6401.4501.5000.430
CPI 202.900201.800205.352208.352208.490210.036213.528218.815218.783210.228
Adj_EPS 1.5260.8610.9621.7371.7700.9300.7141.5781.6330.487

Add all the adjusted EPS together and divide 10 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

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
ShillerPE 29.3122.7321.7920.8124.4523.9835.8738.1449.2242.48

Sherwin-Williams Co Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
ShillerPE 40.0040.0940.7049.2252.0747.7936.9842.4845.250.00
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