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

As of today, Sherwin-Williams Co's current share price is $288.35. Sherwin-Williams Co's E10 for the quarter that ended in Mar. 2015 was $6.08. Sherwin-Williams Co's Shiller P/E Ratio for today is 47.43.

SHW' s 10-Year Shiller P/E Ratio Range
Min: 11.55   Max: 49.53
Current: 47.6

11.55
49.53

During the past 13 years, Sherwin-Williams Co's highest Shiller P/E Ratio was 49.53. The lowest was 11.55. And the median was 23.76.

SHW's Shiller P/E Ratiois ranked lower than
82% of the 593 Companies
in the Global Specialty Chemicals industry.

( Industry Median: 24.60 vs. SHW: 47.60 )

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. 2015 was $1.386. 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 $6.08 for the trailing six years ended in Mar. 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
=288.35/6.08
=47.43

* 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 Mar. 2015 was:

Adj_EPS=Earnigns per Share/CPI of Mar. 2015*CPI of Current
=1.38/236.119*237.167
=1.386

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

Current CPI = 237.167.

Sherwin-Williams Co Quarterly Data

201212201303201306201309201312201403201406201409201412201503
per share eps 0.6551.1102.4602.5501.1441.1402.9403.3501.3791.380
CPI 229.601232.773233.504234.149233.049236.293238.343238.031234.812236.119
Adj_EPS 0.6771.1312.4992.5831.1641.1442.9253.3381.3931.386
201006201009201012201103201106201109201112201203201206201209
per share eps 1.6401.6000.6760.6301.6601.7100.1430.9502.1702.240
CPI 217.965218.439219.179223.467225.722226.889225.672229.392229.478231.407
Adj_EPS 1.7841.7370.7310.6691.7441.7870.1500.9822.2432.296
200906200909200912201003
per share eps 1.3501.5100.5910.300
CPI 215.693215.969215.949217.631
Adj_EPS 1.4841.6580.6490.327

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 24.1724.6218.1916.2515.5519.8420.2732.7736.1944.93

Sherwin-Williams Co Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
ShillerPE 32.7735.4236.0735.8836.1937.5937.8138.0144.9346.77
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