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

As of today, Sherwin-Williams Co's current share price is $281.13. Sherwin-Williams Co's E10 for the quarter that ended in Mar. 2015 was $6.07. Sherwin-Williams Co's Shiller P/E Ratio for today is 46.31.

SHW' s 10-Year Shiller P/E Ratio Range
Min: 11.46   Max: 49.61
Current: 46.32

11.46
49.61

During the past 13 years, Sherwin-Williams Co's highest Shiller P/E Ratio was 49.61. The lowest was 11.46. And the median was 23.71.

SHW's Shiller P/E Ratiois ranked lower than
81% of the 471 Companies
in the Global Specialty Chemicals industry.

( Industry Median: 22.18 vs. SHW: 46.32 )

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 $1.385. 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 $6.07 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
=281.13/6.07
=46.31

* 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*236.959
=1.385

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

Current CPI = 236.959.

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 0.6761.1302.4962.5811.1631.1432.9233.3351.3921.385
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 1.7831.7360.7310.6681.7431.7860.1500.9812.2412.294
200906200909200912201003
per share eps 1.3501.5100.5910.300
CPI 215.693215.969215.949217.631
Adj_EPS 1.4831.6570.6480.327

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 24.0224.4418.2116.2615.5619.8720.3032.8136.2645.04

Sherwin-Williams Co Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
ShillerPE 32.8135.4635.7935.9536.2637.6737.5338.1145.0446.88
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