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Sherwin-Williams Co (NYSE:SHW)
EV/EBIT
22.01 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its EBIT. As of today, Sherwin-Williams Co's enterprise value is $29,166 Mil. Sherwin-Williams Co's operating income for the trailing twelve months (TTM) ended in Mar. 2015 was $1,325 Mil. Therefore, Sherwin-Williams Co's EV/EBIT ratio for today is 22.01.

SHW' s 10-Year EV/EBIT Range
Min: 7.8   Max: 22.8
Current: 22.01

7.8
22.8

During the past 13 years, the highest EV/EBIT Ratio of Sherwin-Williams Co was 22.80. The lowest was 7.80. And the median was 11.70.

SHW's EV/EBITis ranked higher than
71% of the 1616 Companies
in the Global Specialty Chemicals industry.

( Industry Median: 23.27 vs. SHW: 22.01 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Sherwin-Williams Co's enterprise value for the quarter that ended in Mar. 2015 was $29,463 Mil. Sherwin-Williams Co's Operating Income for the trailing twelve months (TTM) ended in Mar. 2015 was $1,325 Mil. Sherwin-Williams Co's Earnings Yield (Joel Greenblatt) for the quarter that ended in Mar. 2015 was 4.50%.


Definition

Sherwin-Williams Co's EV/EBIT for today is calculated as:

EV/EBIT=Enterprise Value (Today)/Operating Income (TTM)
=29166.040/1324.903
=22.01

Sherwin-Williams Co's current Enterprise Value is $29,166 Mil.
Sherwin-Williams Co's Operating Income for the trailing twelve months (TTM) ended in Mar. 2015 was 439.7 (Jun. 2014 ) + 474.716 (Sep. 2014 ) + 207.235 (Dec. 2014 ) + 203.252 (Mar. 2015 ) = $1,325 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.


Explanation

This is a more accurate valuation of companies' operation because it consider the debt and cash on its balance sheet, and non-operating items such as interest payment, tax, and one-time items are not included in the Operating Income.

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt).

Sherwin-Williams Co's Earnings Yield (Joel Greenblatt) for the quarter that ended in Mar. 2015 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Mar. 2015 )=Operating Income (TTM)/Enterprise Value (Q: Mar. 2015 )
=1324.903/29463.445
=4.50 %

Sherwin-Williams Co's Enterprise Value for the quarter that ended in Mar. 2015 was $29,463 Mil.
Sherwin-Williams Co's Operating Income for the trailing twelve months (TTM) ended in Mar. 2015 was 439.7 (Jun. 2014 ) + 474.716 (Sep. 2014 ) + 207.235 (Dec. 2014 ) + 203.252 (Mar. 2015 ) = $1,325 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.


Related Terms

Enterprise Value, Operating Income, Earnings Yield (Joel Greenblatt)


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
ev2ebit 9.0710.548.8310.2511.3313.6313.4017.9616.9220.73

Sherwin-Williams Co Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
ev2ebit 17.9619.1618.6117.8916.9218.3018.1817.8020.7322.24
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