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Sherwin-Williams Co (NYSE:SHW)
Shiller PE Ratio
46.72 (As of Today)

As of today, Sherwin-Williams Co's current share price is $334.95. Sherwin-Williams Co's E10 for the quarter that ended in Mar. 2017 was $7.17. Sherwin-Williams Co's Shiller P/E Ratio for today is 46.72.

SHW' s Shiller PE Ratio Range Over the Past 10 Years
Min: 15.41   Max: 54.06
Current: 46.71

15.41
54.06

During the past 13 years, Sherwin-Williams Co's highest Shiller P/E Ratio was 54.06. The lowest was 15.41. And the median was 28.77.

SHW's Shiller PE Ratio is ranked lower than
66% of the 182 Companies
in the Global Specialty Chemicals industry.

( Industry Median: 36.52 vs. SHW: 46.71 )

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. 2017 was $2.530. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $7.17 for the trailing ten years ended in Mar. 2017.


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
=334.95/7.17
=46.72

* 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 Dec16 is calculated as:

For example, Sherwin-Williams Co's adjusted earnings per share data for the three months ended in Mar. 2017 was:

Adj_EPS=Earnigns per Share/CPI of Mar. 2017 (Change)*Current CPI (Mar. 2017)
=2.53/243.985*243.985
=2.530

Current CPI (Mar. 2017) = 243.985.

Sherwin-Williams Co Quarterly Data

201412201503201506201509201512201603201606201609201612201703
per share eps 1.3801.3803.7003.9702.1201.7503.9904.0802.1402.530
CPI 234.812236.119238.638237.945236.525238.132241.018241.428241.432243.985
Adj_EPS 1.4341.4263.7834.0712.1871.7934.0394.1232.1632.530
201206201209201212201303201306201309201312201403201406201409
per share eps 2.1702.2400.6501.1102.4602.5501.1501.1402.9403.350
CPI 229.478231.407229.601232.773233.504234.149233.049236.293238.343238.031
Adj_EPS 2.3072.3620.6911.1632.5702.6571.2041.1773.0103.434
200912201003201006201009201012201103201106201109201112201203
per share eps 0.6100.3001.6401.6000.6800.6301.6601.7100.1600.950
CPI 215.949217.631217.965218.439219.179223.467225.722226.889225.672229.392
Adj_EPS 0.6890.3361.8361.7870.7570.6881.7941.8390.1731.010
200706200709200712200803200806200809200812200903200906200909
per share eps 1.5201.5500.8200.6401.4501.5000.4300.3201.3501.510
CPI 208.352208.490210.036213.528218.815218.783210.228212.709215.693215.969
Adj_EPS 1.7801.8140.9530.7311.6171.6730.4990.3671.5271.706

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

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ShillerPE 22.6421.7120.7424.3723.9135.7738.3949.0842.3638.30

Sherwin-Williams Co Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
ShillerPE 49.0851.9347.6737.2442.3645.8744.7040.5538.3043.26
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