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

As of today, Sherwin-Williams Co's current share price is $265.06. Sherwin-Williams Co's E10 for the quarter that ended in Sep. 2016 was $6.81. Sherwin-Williams Co's Shiller P/E Ratio for today is 38.92.

SHW' s Shiller P/E Ratio Range Over the Past 10 Years
Min: 15.46   Max: 54.06
Current: 38.93

15.46
54.06

During the past 13 years, Sherwin-Williams Co's highest Shiller P/E Ratio was 54.06. The lowest was 15.46. And the median was 28.73.

SHW's Shiller P/E Ratio is ranked lower than
57% of the 181 Companies
in the Global Specialty Chemicals industry.

( Industry Median: 34.73 vs. SHW: 38.93 )

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 Sep. 2016 was $4.080. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $6.81 for the trailing ten years ended in Sep. 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
=265.06/6.81
=38.92

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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 Sep. 2016 was:

Adj_EPS=Earnigns per Share/CPI of Sep. 2016 (Change)*Current CPI (Sep. 2016)
=4.08/241.428*241.428
=4.080

Current CPI (Sep. 2016) = 241.428.

Sherwin-Williams Co Quarterly Data

201406201409201412201503201506201509201512201603201606201609
per share eps 2.9403.3501.3901.3803.7003.9702.1201.5703.9904.080
CPI 238.343238.031234.812236.119238.638237.945236.525238.132241.018241.428
Adj_EPS 2.9783.3981.4291.4113.7434.0282.1641.5923.9974.080
201112201203201206201209201212201303201306201309201312201403
per share eps 0.1600.9502.1702.2400.6501.1102.4602.5501.1501.140
CPI 225.672229.392229.478231.407229.601232.773233.504234.149233.049236.293
Adj_EPS 0.1711.0002.2832.3370.6831.1512.5432.6291.1911.165
200906200909200912201003201006201009201012201103201106201109
per share eps 1.3501.5100.6100.3001.6401.6000.6800.6301.6601.710
CPI 215.693215.969215.949217.631217.965218.439219.179223.467225.722226.889
Adj_EPS 1.5111.6880.6820.3331.8171.7680.7490.6811.7761.820
200612200703200706200709200712200803200806200809200812200903
per share eps 0.7300.8301.5201.5500.8200.6401.4501.5000.4300.320
CPI 201.800205.352208.352208.490210.036213.528218.815218.783210.228212.709
Adj_EPS 0.8730.9761.7611.7950.9430.7241.6001.6550.4940.363

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 local exchange's currency.

Sherwin-Williams Co Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
ShillerPE 29.0822.6721.7220.7524.3723.9135.7638.3949.0542.34

Sherwin-Williams Co Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
ShillerPE 39.9740.9649.0551.9047.6337.2242.3445.9844.7940.63
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