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Sherwin-Williams Co (Sherwin-Williams Co) Cyclically Adjusted PB Ratio : 26.95 (As of Apr. 28, 2024)


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What is Sherwin-Williams Co Cyclically Adjusted PB Ratio?

As of today (2024-04-28), Sherwin-Williams Co's current share price is $306.45. Sherwin-Williams Co's Cyclically Adjusted Book per Share for the quarter that ended in Dec. 2023 was $11.37. Sherwin-Williams Co's Cyclically Adjusted PB Ratio for today is 26.95.

The historical rank and industry rank for Sherwin-Williams Co's Cyclically Adjusted PB Ratio or its related term are showing as below:

SHW' s Cyclically Adjusted PB Ratio Range Over the Past 10 Years
Min: 12.2   Med: 22.81   Max: 37.74
Current: 26.95

During the past years, Sherwin-Williams Co's highest Cyclically Adjusted PB Ratio was 37.74. The lowest was 12.20. And the median was 22.81.

SHW's Cyclically Adjusted PB Ratio is ranked worse than
98.76% of 1048 companies
in the Chemicals industry
Industry Median: 1.57 vs SHW: 26.95

The Shiller PE Ratio was first used by professor Robert Shiller. He uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings per share of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PB Ratio. The Cyclically Adjusted Book per Share is the average of the inflation adjusted book value per share of a company over the past 10 years.

Sherwin-Williams Co's adjusted book value per share data for the three months ended in Dec. 2023 was $14.598. Add all the adjusted book value per share for the past 10 years together and divide the count will get our Cyclically Adjusted Book per Share, which is $11.37 for the trailing ten years ended in Dec. 2023.

Shiller PE for Stocks: The True Measure of Stock Valuation


Sherwin-Williams Co Cyclically Adjusted PB Ratio Historical Data

The historical data trend for Sherwin-Williams Co's Cyclically Adjusted PB Ratio 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.

* Premium members only.

Sherwin-Williams Co Cyclically Adjusted PB Ratio Chart

Sherwin-Williams Co Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Cyclically Adjusted PB Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 26.29 29.40 37.35 22.86 27.43

Sherwin-Williams Co Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Cyclically Adjusted PB Ratio Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 21.03 24.22 22.70 27.43 -

Competitive Comparison of Sherwin-Williams Co's Cyclically Adjusted PB Ratio

For the Specialty Chemicals subindustry, Sherwin-Williams Co's Cyclically Adjusted PB Ratio, along with its competitors' market caps and Cyclically Adjusted PB Ratio 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's Cyclically Adjusted PB Ratio Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Sherwin-Williams Co's Cyclically Adjusted PB Ratio distribution charts can be found below:

* The bar in red indicates where Sherwin-Williams Co's Cyclically Adjusted PB Ratio falls into.



Sherwin-Williams Co Cyclically Adjusted PB Ratio Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted PB Ratio takes the Book Value per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/B calculation. Because it considers this 10-year average, it's often referred to as the CAPB Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PB Ratio.

Sherwin-Williams Co's Cyclically Adjusted PB Ratio for today is calculated as

Cyclically Adjusted PB Ratio=Share Price/ Cyclically Adjusted Book per Share
=306.45/11.37
=26.95

* 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.

Sherwin-Williams Co's Cyclically Adjusted Book per Share for the quarter that ended in Dec. 2023 is calculated as:

For example, Sherwin-Williams Co's adjusted Book Value per Share data for the three months ended in Dec. 2023 was:

Adj_Book=Book Value per Share/CPI of Dec. 2023 (Change)*Current CPI (Dec. 2023)
=14.598/129.4194*129.4194
=14.598

Current CPI (Dec. 2023) = 129.4194.

Sherwin-Williams Co Quarterly Data

Book Value per Share CPI Adj_Book
201403 5.457 99.695 7.084
201406 5.179 100.560 6.665
201409 4.694 100.428 6.049
201412 3.507 99.070 4.581
201503 1.678 99.621 2.180
201506 2.708 100.684 3.481
201509 3.495 100.392 4.506
201512 3.136 99.792 4.067
201603 3.607 100.470 4.646
201606 4.506 101.688 5.735
201609 5.733 101.861 7.284
201612 6.732 101.863 8.553
201703 7.392 102.862 9.300
201706 8.533 103.349 10.685
201709 9.770 104.136 12.142
201712 12.952 104.011 16.116
201803 13.149 105.290 16.162
201806 13.376 106.317 16.283
201809 14.151 106.507 17.195
201812 13.355 105.998 16.306
201903 12.493 107.251 15.075
201906 13.540 108.070 16.215
201909 14.527 108.329 17.355
201912 14.916 108.420 17.805
202003 12.075 108.902 14.350
202006 14.168 108.767 16.858
202009 15.441 109.815 18.198
202012 13.439 109.897 15.826
202103 11.576 111.754 13.406
202106 10.788 114.631 12.180
202109 10.261 115.734 11.474
202112 9.333 117.630 10.268
202203 8.589 121.301 9.164
202206 8.583 125.017 8.885
202209 10.025 125.227 10.361
202212 11.983 125.222 12.385
202303 12.280 127.348 12.480
202306 14.121 128.729 14.197
202309 14.768 129.860 14.718
202312 14.598 129.419 14.598

Add all the adjusted book value per share together and divide the count will get our Cyclically Adjusted Book per Share.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.


Sherwin-Williams Co  (NYSE:SHW) Cyclically Adjusted PB Ratio Explanation

Compared with the regular PB Ratio, which works poorly for cyclical businesses, the Cyclically Adjusted PB Ratio smoothed out the fluctuations of book value during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Cyclically Adjusted PB Ratio should give similar results to regular PB Ratio.


Sherwin-Williams Co Cyclically Adjusted PB Ratio Related Terms

Thank you for viewing the detailed overview of Sherwin-Williams Co's Cyclically Adjusted PB Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


Sherwin-Williams Co (Sherwin-Williams Co) Business Description

Address
101 West Prospect Avenue, Cleveland, OH, USA, 44115-1075
Sherwin-Williams is the largest provider of architectural paint in the United States. The company has over 4,900 stores and sells premium paint at higher price points than most competitors. Sherwin-Williams also sells paint-related products in big-box stores and provides coatings for original equipment manufacturers.
Executives
Mary L Garceau officer: SVP, Gen. Counsel & Secretary 101 W. PROSPECT AVENUE, CLEVELAND OH 44115
Heidi G Petz officer: President, Consumer Brands Grp 101 W. PROSPECT AVENUE, CLEVELAND OH 44115
John G Morikis officer: President, Paint Stores Group C/O THE SHERWIN WILLIAMS CO, 101 W. PROSPECT AVENUE, CLEVELAND OH 44115
Thomas L Williams director 6035 PARKLAND BOULEVARD, CLEVELAND OH 44124
Gregory P. Sofish officer: SVP - Human Resources 101 WEST PROSPECT AVENUE, 1180 MIDLAND BUILDING, CLEVELAND OH 44115
Justin T Binns officer: President, Perf Coatings Grp 101 W. PROSPECT AVENUE, CLEVELAND OH 44115
Karl J Jorgenrud officer: President, Perf Coatings Group 101 WEST PROSPECT AVENUE, 1180 MIDLAND, CLEVELAND OH 44115
Todd D Rea officer: President, Consumer Brands Grp 101 W. PROSPECT AVENUE, 1180 MIDLAND, CLEVELAND OH 44115
Bryan J Young officer: SVP - Corp Strategy & Devel. 101 W. PROSPECT AVENUE, CLEVELAND OH 44115
Joseph F Sladek officer: Pres. & GM, Glob. Supply Chain 101 W. PROSPECT AVENUE, CLEVELAND OH 44115
Marta R Stewart director C/O NORFOLK SOUTHERN CORP, THREE COMMERCIAL PL, NORFOLK VA 23510-9219
Peter J. Ippolito officer: President, The Americas Group 101 W. PROSPECT AVENUE, CLEVELAND OH 44115
Jane M. Cronin officer: SVP - Corporate Controller 101 W. PROSPECT AVENUE, CLEVELAND OH 44115
Thomas P Gilligan officer: SVP-Human Resources 101 W. PROSPECT AVENUE, CLEVELAND OH 44115
Brian E Padden officer: President, Consumer Brands Grp 101 W. PROSPECT, CLEVELAND OH 44115