Valuation Overview

Growth Story

Over the next few years, revenue is expected to grow by 6.71%, lower than industry average of 8.49%.

Growth Trajectory

Profitability

In the growth phase company makes 15.44% profit on every dollar of sales, higher than industry average of 10.57%.

Profitability Trajectory

Risk Profile

Investors expect at least 8.45% return to justify the risk of holding stock.

Risk vs Return

Required Return (Cost of Capital) (%)
Return on Invested Capital (%)

Financial Health Overview

Enterprise Value
39.21B USD
Equity Value
26.71B USD
FCF Yield
29.33%
Average ROIC
16.32%
Cost of Capital
8.58%
P/E Ratio
30.80x
Financial MetricMost Recent 12 months (USD)Previous Year (USD)
Revenues23.08B USD23.10B USD
Operating Income or EBIT3.73B USD3.92B USD
Interest Expense418.10M USD415.70M USD
Book Value Of Equity4.40B USD4.05B USD
Book Value Of Debt12.77B USD11.91B USD
Cash and Marketable Securities269.80M USD210.40M USD
Number of Shares Outstanding249.33M--
Minority interests0 USD0 USD
Current Stock Price359.04 USD--
Effective Tax Rate22.00%--
Marginal Tax Rate25.00%--

Performance vs Industry

Revenue Growth
-8.57%
-0.09%Company
vs
8.49%Industry
Below Industry
Operating Margin
+5.57%
16.14%Company
vs
10.56%Industry
Above Industry
The Sherwin-Williams Company demonstrates superior operational efficiency with margins above industry average, indicating effective cost management.

Terminal Value Analysis

Growth Rate
4.59%
Cost of Capital
8.83%
Return on Capital
8.83%
Reinvestment Rate
52.09%
Terminal value represents 61% of total enterprise value, based on 4.59% perpetual growth and 8.83% discount rate.

Equity Value Breakdown

ComponentValueType
Present Value (Terminal Value) 23.85B USD Add
Present Value (Cash Flow Over Next 10 Years) 15.35B USD Add
Value of Operating Assets 39.21B USD Sub-total
Debt 12.77B USD Subtract
Minority Interests — Subtract
Cash 269.80M USD Add
Value of Equity 26.71B USD Sub-total
Number of Shares 249.33M shares Divisor
Estimated Value per Share (Fair Value) 107.13 USD Total
Current Market Price 359.04 USD Reference

Financial Projections

Total FCF Present Value
15.35B USD
Avg Revenue Growth
5.26%
Avg Operating Margin
15.28%
Avg ROIC
16.32%
Year 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Terminal Year
REVENUE
Revenue24.12B USD25.73B USD27.46B USD29.30B USD31.27B USD33.24B USD35.19B USD37.10B USD38.97B USD40.76B USD42.63B USD
Growth Rate 4.51% 6.70% 6.70% 6.70% 6.70% 6.28% 5.86% 5.44% 5.02% 4.59% 4.59%
PROFITABILITY
Operating Income3.89B USD4.03B USD4.24B USD4.45B USD4.68B USD4.97B USD5.27B USD5.55B USD5.83B USD6.10B USD6.38B USD
Operating Margin 16.14% 15.67% 15.44% 15.21% 14.97% 14.97% 14.97% 14.97% 14.97% 14.97% 14.97%
EBIT (1-tax)3.03B USD3.14B USD3.30B USD3.47B USD3.65B USD3.85B USD4.04B USD4.23B USD4.41B USD4.57B USD4.78B USD
CASH FLOW
Reinvestment975.74M USD1.04B USD1.11B USD1.18B USD1.18B USD1.71B USD1.68B USD1.64B USD1.58B USD1.65B USD2.49B USD
Free Cash Flow2.06B USD2.10B USD2.19B USD2.29B USD2.46B USD2.13B USD2.35B USD2.59B USD2.83B USD2.92B USD2.29B USD
Terminal Value--------------------54.24B USD
Present Value1.90B USD1.79B USD1.72B USD1.65B USD1.64B USD1.31B USD1.33B USD1.34B USD1.35B USD1.28B USD—
EFFICIENCY
ROIC 17.96% 17.60% 17.48% 17.36% 17.22% 17.20% 16.78% 16.41% 16.07% 15.77% 8.83%
Cost of Capital 8.44% 8.44% 8.44% 8.44% 8.44% 8.52% 8.59% 8.67% 8.75% 8.83% 8.83%
Sales/Capital 1.65x 1.65x 1.65x 1.65x 1.65x 1.13x 1.13x 1.13x 1.13x 1.13x —

Profitability & Efficiency

Operating Margin (%)
ROIC (%)

Value Creation Analysis

ROIC (%)
Cost of Capital (%)

Operational Cash Flow Analysis

Free Cash Flow ($B)
Reinvestment ($B)