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GuruFocus has detected 4 Warning Signs with Sherwin-Williams Co $SHW.
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Sherwin-Williams Co (NYSE:SHW)
EV-to-EBIT
17.47 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, Sherwin-Williams Co's enterprise value is $32,130 Mil. Sherwin-Williams Co's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2017 was $1,840 Mil. Therefore, Sherwin-Williams Co's EV/EBIT ratio for today is 17.47.

SHW' s EV-to-EBIT Range Over the Past 10 Years
Min: 7.9   Max: 23
Current: 17.47

7.9
23

During the past 13 years, the highest EV/EBIT Ratio of Sherwin-Williams Co was 23.00. The lowest was 7.90. And the median was 13.90.

SHW's EV-to-EBIT is ranked lower than
51% of the 1124 Companies
in the Global Specialty Chemicals industry.

( Industry Median: 16.80 vs. SHW: 17.47 )

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. 2017 was $29,824 Mil. Sherwin-Williams Co's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2017 was $1,840 Mil. Sherwin-Williams Co's Earnings Yield (Joel Greenblatt) for the quarter that ended in Mar. 2017 was 6.17%.


Definition

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

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=32129.724/1839.524
=17.47

Sherwin-Williams Co's current Enterprise Value is $32,130 Mil.
Sherwin-Williams Co's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2017 was 580.092 (Jun. 2016 ) + 579.72 (Sep. 2016 ) + 347.412 (Dec. 2016 ) + 332.3 (Mar. 2017 ) = $1,840 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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. 2017 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Mar. 2017 )=EBIT (TTM)/Enterprise Value (Q: Mar. 2017 )
=1839.524/29824.3937
=6.17 %

Sherwin-Williams Co's Enterprise Value for the quarter that ended in Mar. 2017 was $29,824 Mil.
Sherwin-Williams Co's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2017 was 580.092 (Jun. 2016 ) + 579.72 (Sep. 2016 ) + 347.412 (Dec. 2016 ) + 332.3 (Mar. 2017 ) = $1,840 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Related Terms

Enterprise Value, Earnings Yield (Joel Greenblatt), Earnings Before Interest and Taxes (EBIT)


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
ev2ebit 8.5210.2711.6313.5813.2517.7116.8820.1715.9514.90

Sherwin-Williams Co Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
ev2ebit 20.1721.5319.6015.0915.9517.1816.7915.6914.9016.21
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