SHW
The Sherwin-Williams Company (SHW)
Last Price$363.61.0%
Market Cap$90.8B
DCF value
$78.3
Overvalued (DCF value)
(78.5%)
Discount Rate
8.7%
Long-Term Growth Rate
2.0%
Stock quality
6/10
Good

SHW DCF Model

Free Cash Flow to Firm Model
NOPAT Model
Free Cash Flow to Equity Model
Net Income Model
Millions
Billions
Dec'20 ActualDec'21 ActualDec'22 ActualDec'23 ActualDec'24 ActualDec'25 EstimateDec'26 EstimateDec'27 EstimateDec'28 EstimateDec'29 EstimateDec'30 EstimateDec'31 EstimateDec'32 EstimateDec'33 EstimateDec'34 EstimateDec'35 Terminal
% growth
18,361.7
2.6%
19,944.6
8.6%
22,148.9
11.1%
23,051.9
4.1%
23,098.5
0.2%
22,971.3
(0.6%)
25,136.5
9.4%
26,288.2
4.6%
27,407.7
4.3%
28,486.6
3.9%
29,516.0
3.6%
30,487.3
3.3%
31,392.2
3.0%
32,222.6
2.6%
32,971.1
2.3%
33,630.5
2.0%
2,858.3
15.6%
2,583.3
13.0%
2,979.4
13.5%
3,517.2
15.3%
3,773.0
16.3%
3,236.9
14.1%
3,542.0
14.1%
3,704.3
14.1%
3,862.0
14.1%
4,014.1
14.1%
4,159.1
14.1%
4,296.0
14.1%
4,423.5
14.1%
4,540.5
14.1%
4,646.0
14.1%
4,738.9
14.1%
NOPAT
% effective tax rate
2,303.7
12.5%
2,141.9
10.7%
2,339.1
10.6%
2,701.7
11.7%
2,930.9
12.7%
2,514.5
10.9%
2,751.5
10.9%
2,877.5
10.9%
3,000.1
10.9%
3,118.2
10.9%
3,230.8
10.9%
3,337.2
10.9%
3,436.2
10.9%
3,527.1
10.9%
3,609.0
10.9%
3,681.2
10.9%
% of revenue
999.8
5.4%
973.3
4.9%
998.0
4.5%
622.5
2.7%
0.0
0.0%
551.8
2.4%
603.8
2.4%
631.5
2.4%
658.4
2.4%
684.3
2.4%
709.0
2.4%
732.3
2.4%
754.1
2.4%
774.0
2.4%
792.0
2.4%
807.8
2.4%
% of revenue
(303.8)
(1.7%)
(372.0)
(1.9%)
(644.5)
(2.9%)
(888.4)
(3.9%)
(1,070.0)
(4.6%)
(872.6)
(3.8%)
(954.9)
(3.8%)
(998.6)
(3.8%)
(1,041.1)
(3.8%)
(1,082.1)
(3.8%)
(1,121.2)
(3.8%)
(1,158.1)
(3.8%)
(1,192.5)
(3.8%)
(1,224.0)
(3.8%)
(1,252.5)
(3.8%)
(1,277.5)
(3.8%)
276.0
1.5%
(653.3)
(3.3%)
(1,150.3)
(5.2%)
(192.9)
(0.8%)
0.0
0.0%
(461.7)
(2.0%)
(505.3)
(2.0%)
(528.4)
(2.0%)
(550.9)
(2.0%)
(572.6)
(2.0%)
(593.3)
(2.0%)
(612.8)
(2.0%)
(631.0)
(2.0%)
(647.7)
(2.0%)
(662.8)
(2.0%)
(676.0)
(2.0%)
Free Cash Flow to Firm (FCFF)
% of revenue
3,275.7
17.8%
2,089.9
10.5%
1,542.3
7.0%
2,242.9
9.7%
1,860.9
8.1%
1,731.9
7.5%
1,895.1
7.5%
1,982.0
7.5%
2,066.4
7.5%
2,147.7
7.5%
2,225.3
7.5%
2,298.6
7.5%
2,366.8
7.5%
2,429.4
7.5%
2,485.8
7.5%
2,535.5
7.5%
% of FCFF used in calculation
81.9%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
Discount period
0.50
1.50
2.50
3.50
4.50
5.50
6.50
7.50
8.50
9.50
Discount factor
0.96
0.88
0.81
0.75
0.69
0.63
0.58
0.54
0.49
0.45
Discounted FCFF (DFCFF)
1,360.9
1,672.9
1,609.9
1,544.5
1,477.2
1,408.5
1,338.7
1,268.4
1,198.1
1,128.1

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SHW DCF Value

DCF Value Calculation

as of Mar 07, 2025
Sum of DFCFF
% share of EV
14.0B
44.8%
Terminal Value (TV)
38.0B
Discounted TV
% share of EV
17.2B
55.2%
Total Debt
11.9B
Shares outstanding
249.8M
FX rate
1.0
78.5% overvalued

Equity Value Bridge

SHW DCF Financials

Revenue
$23.1B -> $33.0B 3.6% CAGR
Operating Income
$3,773.0M -> $4,646.0M 2.1% CAGR
FCFF
$1,860.9M -> $2,485.8M 2.9% CAGR

SHW DCF sensitivity

DCF value
Long-term Terminal growth rate
1.0%
1.5%
2.0%
2.5%
3.0%
WACC
8.0%
$81.0
$86.0
$92.0
$100.0
$109.0
8.5%
$72.0
$76.0
$82.0
$88.0
$95.0
8.7%
$69.0
$73.0
$78.0
$84.0
$90.0
9.5%
$58.0
$61.0
$64.0
$68.0
$73.0
10.0%
$52.0
$54.0
$57.0
$61.0
$65.0
DCF value, undervalued / overvalued
Long-term Terminal growth rate
1.0%
1.5%
2.0%
2.5%
3.0%
WACC
8.0%
(78.0%)
(76.0%)
(75.0%)
(72.0%)
(70.0%)
8.5%
(80.0%)
(79.0%)
(77.0%)
(76.0%)
(74.0%)
8.7%
(81.0%)
(80.0%)
(79.0%)
(77.0%)
(75.0%)
9.5%
(84.0%)
(83.0%)
(82.0%)
(81.0%)
(80.0%)
10.0%
(86.0%)
(85.0%)
(84.0%)
(83.0%)
(82.0%)

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FAQ

What is The Sherwin-Williams Company DCF (discounted cash flow) valuation?

As of Mar 07, 2025, The Sherwin-Williams Company's Discounted Cash Flow (DCF) valuation estimates its share price at $78.3. This suggests it may be overvalued by (78.5%) compared to its current price of around $363.6, using a WACC of 8.7% and growth rates of 2.0%.

What is The Sherwin-Williams Company WACC?

As of Mar 07, 2025, The Sherwin-Williams Company's Weighted Average Cost of Capital (WACC) is approximately 8.7%.

What is The Sherwin-Williams Company Enterprise Value?

As of Mar 07, 2025, The Sherwin-Williams Company's Enterprise Value (EV) is approximately $31.3B. This value reflects the company's total market capitalization plus debt, minus cash and cash equivalents, providing a comprehensive measure of its overall value in the market.