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

As of today, Sherwin-Williams Co's current share price is $291.79. Sherwin-Williams Co's E10 for the quarter that ended in Mar. 2016 was $6.22. Sherwin-Williams Co's Shiller P/E Ratio for today is 46.91.

SHW' s Shiller P/E Ratio Range Over the Past 10 Years
Min: 15.46   Max: 54.36
Current: 46.94

15.46
54.36

During the past 13 years, Sherwin-Williams Co's highest Shiller P/E Ratio was 54.36. The lowest was 15.46. And the median was 27.62.

SHW's Shiller P/E Ratio is ranked lower than
76% of the 164 Companies
in the Global Specialty Chemicals industry.

( Industry Median: 28.97 vs. SHW: 46.94 )

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 $6.22 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
=291.79/6.22
=46.91

* 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

201312201403201406201409201412201503201506201509201512201603
per share eps 1.0981.1402.9403.3501.3721.3803.7003.9702.1141.570
CPI 233.049236.293238.343238.031234.812236.119238.638237.945236.525238.132
Adj_EPS 1.1221.1492.9373.3511.3911.3923.6923.9732.1281.570
201106201109201112201203201206201209201212201303201306201309
per share eps 1.6601.7100.1430.9502.1702.2400.6551.1102.4602.550
CPI 225.722226.889225.672229.392229.478231.407229.601232.773233.504234.149
Adj_EPS 1.7511.7950.1510.9862.2522.3050.6791.1362.5092.593
200812200903200906200909200912201003201006201009201012201103
per share eps 0.4240.3201.3501.5100.5910.3001.6401.6000.6760.630
CPI 210.228212.709215.693215.969215.949217.631217.965218.439219.179223.467
Adj_EPS 0.4800.3581.4901.6650.6520.3281.7921.7440.7340.671
200606200609200612200703200706200709200712200803200806200809
per share eps 1.3301.3000.7260.8301.5201.5500.8010.6401.4501.500
CPI 202.900202.900201.800205.352208.352208.490210.036213.528218.815218.783
Adj_EPS 1.5611.5260.8570.9621.7371.7700.9080.7141.5781.633

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 29.4822.8621.9220.9324.4924.0235.9138.5849.3242.56

Sherwin-Williams Co Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
ShillerPE 38.5840.0740.1540.7649.3252.1847.8837.0542.5645.77
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