Sherwin-Williams CoSHW +0.59%87 ROC (Joel Greenblatt) % is 43.67% as of Mar. 2026, which is 36% below its 10-year median of 68.54. GuruFocus rates SHW with a GF Score™ of 87/100 and a GF Value™ of $355.74 (Fairly Valued). Among 1,602 Chemicals companies, Sherwin-Williams Co ranks better than 95.57% on this metric.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits). He defines ROC (Joel Greenblatt) % as EBIT divided by the total of Property, Plant and Equipment and net working capital. Sherwin-Williams Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 43.67%.
The historical rank and industry rank for Sherwin-Williams Co's ROC (Joel Greenblatt) % or its related term are showing as below:
SHW'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 53.57 Med: 68.54 Max: 111.44
Current: 53.57
During the past 13 years, Sherwin-Williams Co's highest ROC (Joel Greenblatt) % was 111.44%. The lowest was 53.57%. And the median was 68.54%.
SHW's ROC (Joel Greenblatt) % is ranked better than 95.57% of 1602
companies
in the Chemicals industry
Industry Median: 9.385
vs SHW: 53.57
Sherwin-Williams Co's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was -1.70% per year.
Sherwin-Williams Co (NYSE:SHW) ROC (Joel Greenblatt) % Explanation
The way Joel Greenblatt defines Return on Capital is a more accurate measure of how efficiently the company generates returns onthe capital actually invested in the business. EBIT is used instead of net income because the tax and interest payment may be affected by factors other than the core business operation. Intangible assets are not included in the calculation because they don't need to be replaced.
Sherwin-Williams Co ROC (Joel Greenblatt) % Related Terms
Sherwin-Williams Co ROC (Joel Greenblatt) % Historical Data
* Premium members only.
The historical data trend for Sherwin-Williams Co's ROC (Joel Greenblatt) % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
SHW vs ECL, APD, PPG: ROC (Joel Greenblatt) % Comparison
For the Specialty Chemicals subindustry, Sherwin-Williams Co's ROC (Joel Greenblatt) %, along with its competitors' market caps and ROC (Joel Greenblatt) % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Sherwin-Williams Co ROC (Joel Greenblatt) % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Sherwin-Williams Co's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Sherwin-Williams Co's ROC (Joel Greenblatt) % falls into.
Sherwin-Williams Co ROC (Joel Greenblatt) % Calculation
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits) . He defines Return on Capital as follows:
EBIT stands for Earnings Before Interest and Taxes.
Fixed Assets are also known as non-current assets. They include the Property, Plant and Equipment that the firm needs in its operation.
GuruFocus calculates net working capital as: (Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Deferred Revenue + Other Current Liabilities). We're trying to account for OPERATING assets and liabilities (part of daily business) when calculating working capital. Cash and marketable securities are considered NON-OPERATING assets and are not included in calculation. We will also back out all interest bearing debt, short term debt and the portion of long term debt that is due in the current period from the current liabilities. This debt will be considered when computing cost of capital and it would be inappropriate to count it twice.
Note:
The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
What does a ROC (Joel Greenblatt) % of 43.67% mean?
Sherwin-Williams Co (SHW) has a ROC (Joel Greenblatt) % of 43.67% as of Mar. 2026. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Sherwin-Williams Co and its competitors. This is 36% below median its historical median of 68.54. Over the past decade, Sherwin-Williams Co's ROC (Joel Greenblatt) % has ranged from 53.57 to 111.44. According to the industry distribution chart, Sherwin-Williams Co ranks #71 out of 1602 companies in the Chemicals industry, placing it in the top 4.4%.
Is Sherwin-Williams Co's ROC (Joel Greenblatt) % too high?
Sherwin-Williams Co's current ROC (Joel Greenblatt) % of 43.67% is 36% below median its 10-year median of 68.54. Over the past 10 years, this metric has ranged from a low of 53.57 to a high of 111.44. The Chemicals industry median ROC (Joel Greenblatt) % is 9.39. Sherwin-Williams Co's value of 43.67% is 365.3% above this industry median. Based on the distribution chart, Sherwin-Williams Co ranks #71 out of 1602 companies in the Chemicals industry, which is in the top quartile — a strong position relative to peers. Overall, Sherwin-Williams Co has a GF Score™ of 87/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Sherwin-Williams Co's ROC (Joel Greenblatt) % compare to ECL and APD?
According to the Chemicals industry distribution chart, Sherwin-Williams Co ranks #71 out of 1602 companies for ROC (Joel Greenblatt) %. This places Sherwin-Williams Co in the top 4% of its industry — outperforming the majority of peers. The industry median ROC (Joel Greenblatt) % is 9.39. Sherwin-Williams Co's value of 43.67% is 365.3% above this benchmark. Historically, Sherwin-Williams Co's own ROC (Joel Greenblatt) % has ranged from 53.57 to 111.44 over the past decade. While the company's 10-year median is 68.54 vs. the industry median of 9.39, Sherwin-Williams Co has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROC (Joel Greenblatt) % for a Chemicals company?
The median ROC (Joel Greenblatt) % among Chemicals companies is 9.39, based on 1,602 companies in the industry. Companies in the top quartile (top 25%) have a ROC (Joel Greenblatt) % significantly above this median, while those in the bottom quartile fall well below. However, ROC (Joel Greenblatt) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Sherwin-Williams Co's current ROC (Joel Greenblatt) % of 43.67% is 365.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROC (Joel Greenblatt) % mean?
A high ROC (Joel Greenblatt) % can signal that a stock is expensive relative to its fundamentals. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Sherwin-Williams Co and its competitors. For the Chemicals industry, the median ROC (Joel Greenblatt) % is 9.39 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sherwin-Williams Co's current ROC (Joel Greenblatt) % is 43.67%, which is 36% below median its own 10-year median of 68.54. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sherwin-Williams Co stock overvalued right now?
Based on GuruFocus' analysis, Sherwin-Williams Co (SHW) is currently considered Fairly Valued. The stock's GF Value™ is $355.74, compared to a current price of $333.99 — trading 6.1% below its estimated fair value. The current ROC (Joel Greenblatt) % is 43.67%, which is 36% below median its 10-year median of 68.54 and 365.3% above the Chemicals industry median of 9.39. Sherwin-Williams Co's overall GF Score™ is 87/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROC (Joel Greenblatt) % calculated?
ROC (Joel Greenblatt) % is calculated from a company's financial statements. For Sherwin-Williams Co (SHW), the current ROC (Joel Greenblatt) % is 43.67% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Sherwin-Williams Co (SHW) Overvalued in 2026?
Based on GuruFocus' analysis, Sherwin-Williams Co stock appears to be undervalued.
The current stock price of $333.99 is trading 6.1% below its estimated GF Value™ of $355.74.
GuruFocus considers Sherwin-Williams Co to be Fairly Valued.
Key valuation signals for SHW:
ROC (Joel Greenblatt) %: 43.67% (36% below median its 10-year median of 68.54)
GF Value™: $355.74 vs. price of $333.99 (6.1% below fair value)
Industry Position: 365.3% above the Chemicals median (#71 of 1602)
No single metric tells the full story. See the SHW stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sherwin-Williams is the largest global manufacturer of paints and coatings. The company focuses on the development, manufacturing, and distribution of paint, coatings, and related products to customers ranging from professional painters and contractors to industrial manufacturers to do-it-yourself consumers. Sherwin organizes its operations into three primary segments: the paint stores group is the largest segment and includes the company's network of over 4,800 company-owned stores; the consumer brands group sells branded architectural paints through big-box retailers such as Lowe's, and the performance coatings group provides specialized coatings for industrial applications, such as automotive refinishing, packaging, and industrial wood.
87GF Score
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