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The Sherwin-Williams Company (SHW) Fair Value & Analysis

Basic Materials · US · Market cap $82.4B

TS The Sherwin-Williams Company logo The Sherwin-Williams Company SHW · US
Price$363.42
Fair Value$143.38
Upside-60.6%
Quality63/100
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Healthy Growth
Solidly profitable · 10.9% net margin
High debt · generates free cash flow
0.95% dividend yield
Mixed vs. peers (6/15)
Wide moat 74/100
Evidence: High Range $92.08 – $204.81 Share as image

Fair value as of: Jul 11, 2026

From 24 valuation models · updated 27 days ago

Share price +6.2% over the past month.

A solid business, but screening 61% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case ($204.81). The favourable scenario is already priced in.
  • Solid but not exceptional quality (63/100) and above fair value, neither a clear bargain nor a standout compounder.
  • A fairly wide model range ($92.08 to $204.81) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

$394.28 $194.42 Fair Value $143.38 May 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 11, 2026.

How to read this chart

60‑month range $194.42 – $394.28 · fair‑value band $92.08 – $204.81 · the $363.42 price screens above the $143.38 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 11, 2026.

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Analysis

The Sherwin-Williams Company (SHW) currently trades at $363.42, while our model-based Fair Value estimate is $143.38, implying the stock looks roughly 60.6% overvalued today. We read business quality at 63/100 (solid quality), in the Basic Materials sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, The Sherwin-Williams Company generated revenue of $23.9B at a net margin of 10.9%. Revenue grew 6.8% year over year. It earns a return on equity of 60.7%. Net debt stands at $14.3B. Fundamentals as of Jul 11, 2026

Our scenario range runs from $92.08 (bear case) to $204.81 (bull case); at $363.42, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 4% below its 52-week high and 25% above its 52-week low, currently above its 200-day average. For context, the median of 10 Basic Materials peers we cover trades at -58% fair-value upside, at -61%, SHW screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model BearBaseBull Evidence
Highest evidence
Growth DCF $85.96 $143.30 $224.62 80
Residual Income $94.29 $159.79 $3,429 76
Rev-Margin DCF $91.91 $170.29 $258.93 74
All 24 models by family
DCF Models
FCF DCF $83.57 $147.70 $244.16 38
Owner Earnings $74.21 $133.35 $222.32 31
5Y Revenue Exit $91.91 $170.26 $269.65 39
5Y EBITDA Exit $107.30 $198.75 $304.39 41
5Y P/E Exit $95.25 $176.44 $260.54 38
10Y Revenue Exit $83.50 $154.05 $247.42 36
10Y EBITDA Exit $97.50 $173.72 $273.68 37
10Y P/E Exit $89.85 $158.32 $240.54 35
Earnings-Based
Graham-Dodd $70.82 $208.75 $276.08 54
Lynch FV $43.74 $62.48 $81.23 50
PEG = 1.0 $43.74 $62.48 $81.23 46
EPV $80.25 $99.78 $116.87 59
Multiples
P/E Multiple $156.21 $208.28 $260.35 63
P/S Multiple $132.78 $177.04 $221.30 58
P/B Multiple $41.95 $55.93 $69.92 55
EV/EBIT $171.31 $240.73 $310.15 53
EV/EBITDA $140.22 $199.28 $258.33 54
EV/Revenue $103.43 $163.60 $223.76 43
Asset-Based
NCAV (Graham) $9.32 $12.49 $18.64 50
Growth DCF
Growth DCF $85.96 $143.30 $224.62 80
Rev-Margin DCF $91.91 $170.29 $258.93 74
Economic Profit
Residual Income $94.29 $159.79 $3,429 76
ROIC Compounder $87.92 $119.58 $155.60 72
Growth Earnings
Growth-Adj P/E $127.43 $182.04 $236.65 68

Widest divergence: Growth Earnings ($182.04) versus Asset-Based ($12.49). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) $23.9B
Revenue growth (YoY) +6.8%
Net margin 10.9%
Return on equity 60.7%
Free cash flow $2.7B FY2025
P/E ratio 31.8
More key figures
Operating margin 14.2%
EPS (TTM) $10.49
Dividend yield 1.0%
EPS growth (YoY) +7.5%
Net debt $14.3B FY2025

Figures from reported company fundamentals · as of Jul 11, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 63/100

Of which business quality 60 · Market factors (momentum, volatility) 57

Profitability 72
Margins and returns on capital today
Quality Growth 35
Are margins and returns improving?
Cashflow 59
Earnings quality: real cash, not paper profit
Fin. Strength 35
Balance sheet, leverage, solvency risk
Investment 66
Disciplined investing over empire-building
Low Volatility 63
Calm price path (market factor)
Momentum 50
Price trend over the last 3–12 months (market factor)
52W Momentum 63
Distance to the 52-week high (market factor)
Net Issuance 100
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

The Sherwin-Williams Company engages in the development, manufacture, distribution, and sale of paint, coatings, and related products to professional, industrial, commercial and retail customers. The company operates through three segments: Paint Stores Group, Consumer Brands Group, and Performance Coatings Group.

Full company description

The Sherwin-Williams Company engages in the development, manufacture, distribution, and sale of paint, coatings, and related products to professional, industrial, commercial and retail customers. The company operates through three segments: Paint Stores Group, Consumer Brands Group, and Performance Coatings Group. The Paint Stores Group segment offers architectural paint and coatings; protective and marine products; and OEM product finishes and related products for architectural and industrial paint contractors, and do-it-yourself homeowners under the Sherwin-Williams brand. The Consumer Brands Group segment supplies a portfolio of branded and private-label architectural paints, stains, varnishes, industrial products, wood finishes products, wood preservatives, applicators, corrosion inhibitors, aerosols, caulks, and adhesives to retailers, including home centers and hardware stores, and dedicated dealers and distributors. The Performance Coatings Group segment develops and sells industrial coatings for wood finishing and general industrial applications; automotive refinish products; protective and marine coatings; coil coatings; packaging coatings; and performance-based resins and colorants. This segment serves retailers, dealers, jobbers, licensees, and other third-party distributors. The company operates in North America, South America, the Caribbean, Europe, Asia, and Australia. The Sherwin-Williams Company was founded in 1866 and is headquartered in Cleveland, Ohio.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

The Sherwin-Williams Company reported revenue of $23.6B in FY2025 versus $19.9B in FY2021, a compound +4.3%/yr. Reported net income was $2.6B in FY2025, compounding +8.3%/yr from FY2021.

Growth Quality 79/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
$23.6B
Latest YoY
+2.1%
Avg. growth/yr (3Y)
+2.1%
Avg. growth/yr (5Y)
+5.1%
Avg. growth/yr (40Y)
+6.1%
Revenue +4.3%/yr
FY21 $19.9B
FY22 $22.1B
FY23 $23.1B
FY24 $23.1B
FY25 $23.6B
Net income +8.3%/yr
FY21 $1.9B
FY22 $2.0B
FY23 $2.4B
FY24 $2.7B
FY25 $2.6B

SHW screens 61% overvalued. Compare with Linde plc →

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Cite: Fair Value Calculator (2026). "The Sherwin-Williams Company Fair Value". https://www.fairvalue-calculator.com/stock/SHW

Recent news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

Peer Group

Specialty Chemicals · 680 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 63 · Top 25%
Fair Value upside −61% · Bottom 25%
Return on equity (TTM) 61% · Top 25%
Return on assets 9% · Top 25%
Net margin (TTM) 11% · Top 25%
Operating margin (TTM) 14% · Top 25%
Revenue growth 7% · Above median
Dividend yield (TTM) 1.0% · Below median
Debt / equity 2.03× · Higher than 75% of peers

Valuation Multiples vs Specialty Chemicals median · lower = cheaper

P/E (TTM) 31.8× · Pricier than median
P/B 17.91× · Pricier than 75% of peers
P/S (TTM) 3.44× · Pricier than 75% of peers
P/FCF 31.0× · Pricier than 75% of peers
EV/EBITDA 20.1× · Pricier than 75% of peers
PEG 2.55× · Pricier than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 0 · sector 0
FUTURE 34 · sector 19
PAST 100 · sector 23
HEALTH 0 · sector 95
DIVIDEND 19 · sector 24

VALUE 0: the price sits above our fair-value range.

Insider activity: 44/100

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Specialty Chemicals stocks, each showing price versus our Fair Value estimate (as of Jul 11, 2026).

Stock Price Fair Value vs Fair Value
Linde plc LIN $520.74 $226.27 -57%
Nan Ya Plastics Corporation 1303 181.50 TWD 255.83 TWD +41%
Wanhua Chemical Group 600309 ¥70.04 ¥68.03 -3%
Novozymes A/S NSISB kr 428.20 kr 179.66 -58%
Asian Paints Limited ASIANPAINT ₹2,689 ₹668.81 -75%
Solar Industries India Limited SOLARINDS ₹18,236 ₹2,793 -85%
Pidilite Industries Limited PIDILITIND ₹1,560 ₹351.84 -77%
PT Chandra Asri Pacific Tbk TPIA 1,805 IDR 2,888 IDR +60%
Linde India Limited LINDEINDIA ₹7,115 ₹757.93 -89%
Berger Paints India Limited BERGEPAINT ₹493.70 ₹164.29 -67%

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Frequently asked questions

Is The Sherwin-Williams Company (SHW) overvalued or undervalued?
As of Jul 11, 2026, our model estimates a fair value of $143.38 versus a price of $363.42, about −61% (overvalued).
What is the fair value of SHW?
Our model-based fair value for The Sherwin-Williams Company is $143.38 (as of Jul 11, 2026), built from audited fundamentals. The current price is $363.42.
What is the quality score of SHW?
The Sherwin-Williams Company has a Quality Score of 63/100. It combines two groups: business quality (profitability, growth, cash flow, balance-sheet strength) and market factors (price momentum, distance to the 52-week high, volatility). Both subtotals are shown separately in the detail view.
What is the revenue of The Sherwin-Williams Company (SHW)?
The Sherwin-Williams Company reported trailing-twelve-month revenue of about $23.9B (latest available figure, as of Jul 11, 2026).
What is the net profit margin of SHW?
The net profit margin of The Sherwin-Williams Company is about 10.9%, meaning it keeps roughly 10.9% of revenue as net income. Based on the latest reported figures.
Does The Sherwin-Williams Company pay a dividend?
The Sherwin-Williams Company currently shows a dividend yield of about 1.07% relative to its recent price (as of Jul 11, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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