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

As of today, Sherwin-Williams Co's current share price is $285.82. Sherwin-Williams Co's E10 for the quarter that ended in Jun. 2016 was $6.52. Sherwin-Williams Co's Shiller P/E Ratio for today is 43.84.

SHW' s Shiller P/E Ratio Range Over the Past 10 Years
Min: 15.41   Max: 53.86
Current: 43.8

15.41
53.86

During the past 13 years, Sherwin-Williams Co's highest Shiller P/E Ratio was 53.86. The lowest was 15.41. And the median was 28.29.

SHW's Shiller P/E Ratio is ranked lower than
68% of the 176 Companies
in the Global Specialty Chemicals industry.

( Industry Median: 32.01 vs. SHW: 43.80 )

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. 2016 was $3.990. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $6.52 for the trailing ten years ended in Jun. 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
=285.82/6.52
=43.84

* 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 Jun. 2016 was:

Adj_EPS=Earnigns per Share/CPI of Jun. 2016 (Change)*Current CPI (Jun. 2016)
=3.99/241.038*241.038
=3.990

Current CPI (Jun. 2016) = 241.038.

Sherwin-Williams Co Quarterly Data

201403201406201409201412201503201506201509201512201603201606
per share eps 1.1402.9403.3501.3901.3803.7003.9702.1201.5703.990
CPI 236.293238.343238.031234.812236.119238.638237.945236.525238.132241.038
Adj_EPS 1.1632.9733.3921.4271.4093.7374.0222.1601.5893.990
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 1.8170.1710.9982.2792.3330.6821.1492.5392.6251.189
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 0.3631.5091.6850.6810.3321.8141.7660.7480.6801.773
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 1.5440.8720.9741.7581.7920.9410.7221.5971.6530.493

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 29.3622.5921.6620.7024.5324.0535.9738.2448.8642.57

Sherwin-Williams Co Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
ShillerPE 40.1040.1840.7948.8652.2047.9037.0642.5745.7845.04
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