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

As of today, Sherwin-Williams Co's current share price is $213.47. Sherwin-Williams Co's E10 for the quarter that ended in Mar. 2014 was $5.25. Sherwin-Williams Co's Shiller P/E Ratio for today is 40.70.

SHW' s 10-Year Shiller P/E Ratio Range
Min: 11.55   Max: 40.9
Current: 40.7

11.55
40.9

During the past 13 years, Sherwin-Williams Co's highest Shiller P/E Ratio was 40.90. The lowest was 11.55. And the median was 23.52.

SHW's Shiller P/E Ratiois ranked higher than
84% of the 704 Companies
in the Global Building Materials industry.

( Industry Median: 9999.00 vs. SHW: 40.70 )

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. 2014 was $1.156. 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 $5.25 for the trailing six years ended in Mar. 2014.


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
=213.47/5.25
=40.66

* 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 Dec13 is calculated as:

For example, Sherwin-Williams Co's adjusted earnings per share data for the three months ended in Mar. 2014 was:

Adj_EPS=Earnigns per Share/CPI of Mar. 2014*CPI of Current
=1.14/236.293*239.556
=1.156

Since most companies do not have as long as 10 years history, here we use 6 years to calculate:

Current CPI = 239.556.

Sherwin-Williams Co Quarterly Data

201112201203201206201209201212201303201306201309201312201403
per share eps 0.1430.9502.1702.2400.6681.1102.4602.5501.1671.140
CPI 225.672229.392229.478231.407229.601232.773233.504234.149233.049236.293
Adj_EPS 0.1520.9922.2652.3190.6971.1422.5242.6091.2001.156
200906200909200912201003201006201009201012201103201106201109
per share eps 1.3501.5100.5910.3001.6401.6000.6760.6301.6601.710
CPI 215.693215.969215.949217.631217.965218.439219.179223.467225.722226.889
Adj_EPS 1.4991.6750.6560.3301.8021.7550.7390.6751.7621.805
200806200809200812200903
per share eps 1.4501.5000.4240.320
CPI 218.815218.783210.228212.709
Adj_EPS 1.5871.6420.4830.360

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

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ShillerPE 27.3724.1724.6118.1916.2415.5519.8420.2832.7436.13

Sherwin-Williams Co Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
ShillerPE 20.2824.2128.7831.5132.7435.3936.0535.8536.1337.54
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