The Sherwin-Williams Company (SHW) Stock Valuation — PE Analysis
Chemicals - Specialty · NYSE
Current Price
$317.30
PE Ratio (TTM)
30.0x
Intrinsic Value
$331.26
+4.2% margin of safety
COMPETITIVE MOAT
↑Brand Recognition and Loyalty
Sherwin-Williams benefits from strong brand recognition among consumers and professionals. This allows for premium pricing and repeat business, creating a loyal customer base.
↑Extensive Distribution Network
The company operates a vast network of company-owned stores, providing direct access to customers and control over product placement. This is a significant barrier to entry for competitors.
↑Scale and Purchasing Power
Its large operational scale grants Sherwin-Williams significant purchasing power for raw materials. This leads to cost advantages over smaller rivals in the specialty chemicals sector.
INVESTMENT RISKS
↓Housing Market Sensitivity
The company's performance is closely tied to the cyclical nature of the housing market. A prolonged downturn, as suggested by recent outlooks, could negatively impact sales and profitability.
↓Raw Material Price Volatility
Fluctuations in the cost of key raw materials can impact margins. While scale helps, significant price swings can still pose a challenge to profitability.
↓Intense Competition
The paints and coatings industry is highly competitive, with both large global players and smaller regional companies. This can pressure pricing and market share.
Base case
SHW base case PE valuation
A base case PE valuation for SHW estimates a fair value of about $331.26 per share, against a current price of $317.3. The model assumes 7.4% annual earnings growth, a 30x target PE multiple, and a 10% discount rate.
Intrinsic Value
$331.26
Margin of safety
+4.2%
Expected annual return
+0.9%
Base case assumptions: 7.4% annual earnings growth, 30x target PE, 10% discount rate, 5 year projection. Data as of 2026-06-12.
This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the SHW PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for The Sherwin-Williams Company respond.
Open PE Calculator for SHWCompany Overview
Cleveland, Ohio-based The Sherwin-Williams Company, established in 1866, is a prominent global player in the development, manufacturing, distribution, and sale of paints, coatings, and related merchandise. Its extensive customer base encompasses professionals, industrial enterprises, commercial clients, and individual consumers. The company's operations are organized into three key segments: 1. The Americas Group: This division provides architectural paints and coatings, protective and marine products, and original equipment manufacturer (OEM) finishes, catering to architectural and industrial painting contractors, as well as do-it-yourself homeowners. 2. Consumer Brands Group: This segment supplies a broad portfolio of both branded and private-label offerings, including architectural paints, stains, varnishes, wood finishes, and various related items like applicators, adhesives, and aerosols, to retailers and distributors. 3. Performance Coatings Group: Focused on specialized applications, this group develops and sells industrial coatings for wood finishing and general industrial use, automotive refinish products, high-performance protective and marine coatings, coil and packaging coatings, and advanced resins and colorants. Sherwin-Williams reaches its global clientele through its approximately 5,000 company-operated stores and facilities (as of February 17, 2022), alongside direct sales personnel and external representatives. The company maintains a significant international footprint, operating across North and South America, the Caribbean, Europe, Asia, and Australia.
Financial Metrics — SHW PE Stock Valuation Data
PE Ratio (TTM)
30.0x
PEG Ratio
n/m
Earnings Yield
3.33%
ROE (TTM)
58.2%
Revenue/Share (TTM)
$97.42
Dividend Yield
1.00%
Debt/Equity
3.11x
Frequently Asked Questions
What is the PE ratio of SHW?
The trailing twelve-month PE ratio of SHW reflects how much investors pay per dollar of The Sherwin-Williams Company's earnings. This metric is most useful when compared to Chemicals - Specialty peers and the company's own historical range.
Is SHW overvalued based on PE ratio?
SHW's PE of 30.0x combined with a PEG ratio of -18.90 provides a growth-adjusted perspective. SHW has negative earnings, so its PE and PEG ratios are not meaningful here and cannot tell you whether the stock is over or undervalued. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Chemicals - Specialty, a DCF analysis may be more appropriate.
How do I value SHW stock using PE ratio?
To value The Sherwin-Williams Company using PE: (1) Compare the current PE (30.0x) against the Chemicals - Specialty median to assess relative pricing, (2) check the PEG ratio (-18.90) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
What is the PEG ratio of SHW?
SHW's PEG ratio is -18.90, calculated by dividing the PE ratio (30.0x) by the expected earnings growth rate. Because SHW has negative earnings, its PEG ratio is not meaningful and should not be read as a sign of under or overvaluation. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for SHW stock valuation?
PE ratio gives a quick relative read — how SHW is priced versus Chemicals - Specialty peers. DCF provides an absolute value based on projected free cash flows. For SHW, with a strong ROE of 58.2%, both methods are worth using — PE for a market-relative check, DCF to stress-test whether fundamentals justify the price. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
Learn More
- See SHW DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
- PE Methodology — Step-by-step guide to PE ratio stock valuation
- DCF Methodology — Guide to discounted cash flow analysis
- PE Ratio — Understanding the price-to-earnings ratio
- Intrinsic Value — How to evaluate stock fair value
Related PE Valuations
All Basic Materials valuationsP/E and DCF value SHW with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-06-12. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.