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

As of today, Sherwin-Williams Co's current share price is $212.65. Sherwin-Williams Co's E10 for the quarter that ended in Jun. 2014 was $5.51. Sherwin-Williams Co's Shiller P/E Ratio for today is 38.60.

SHW' s 10-Year Shiller P/E Ratio Range
Min: 11.46   Max: 40.09
Current: 38.6

11.46
40.09

During the past 13 years, Sherwin-Williams Co's highest Shiller P/E Ratio was 40.09. The lowest was 11.46. And the median was 23.46.

SHW's Shiller P/E Ratiois ranked higher than
84% of the 705 Companies
in the Global Building Materials industry.

( Industry Median: 9999.00 vs. SHW: 38.60 )

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 Jun. 2014 was $2.945. 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 $5.51 for the trailing six years ended in Jun. 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
=212.65/5.51
=38.59

* 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 Jun. 2014 was:

Adj_EPS=Earnigns per Share/CPI of Jun. 2014*CPI of Current
=2.94/238.343*238.786
=2.945

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

Current CPI = 238.786.

Sherwin-Williams Co Quarterly Data

201203201206201209201212201303201306201309201312201403201406
per share eps 0.9502.1702.2400.6681.1102.4602.5501.1671.1402.940
CPI 229.392229.478231.407229.601232.773233.504234.149233.049236.293238.343
Adj_EPS 0.9892.2582.3110.6951.1392.5162.6001.1961.1522.945
200909200912201003201006201009201012201103201106201109201112
per share eps 1.5100.5910.3001.6401.6000.6760.6301.6601.7100.143
CPI 215.969215.949217.631217.965218.439219.179223.467225.722226.889225.672
Adj_EPS 1.6700.6530.3291.7971.7490.7360.6731.7561.8000.151
200809200812200903200906
per share eps 1.5000.4240.3201.350
CPI 218.783210.228212.709215.693
Adj_EPS 1.6370.4820.3591.495

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 27.2024.0224.4618.2216.2715.5719.8720.3132.8135.89

Sherwin-Williams Co Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
ShillerPE 24.2628.8331.2932.8135.4635.7935.9535.8937.6537.62
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