Stock Analysis on Net

Sherwin-Williams Co. (NYSE:SHW)

$24.99

Price to Earnings (P/E)
since 2005

Microsoft Excel

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Calculation

Sherwin-Williams Co., P/E, long-term trends, calculation

Microsoft Excel

Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).

1 US$

2 Data adjusted for splits and stock dividends.

3 Closing price as at the filing date of Sherwin-Williams Co. Annual Report.


The price-to-earnings (P/E) ratio for the observed period demonstrates considerable fluctuation. Initially, the ratio exhibited volatility, moving from 12.72 to 15.53, then decreasing to 10.62 before a slight recovery to 11.36. A subsequent increase is noted, peaking at 19.17, followed by a continued rise to 23.80 and 26.48. The ratio remained relatively stable around 26.50 for two years before increasing significantly to 31.54.

Overall Trend
From 2006 to 2013, the P/E ratio generally trended upwards, indicating investors were willing to pay more for each dollar of earnings. However, this trend was not linear, with periods of decline and stagnation. A substantial increase occurred between 2013 and 2014, followed by a decrease in 2015. The period from 2015 to 2017 showed moderate fluctuation. A significant peak was observed in 2018 at 36.79, followed by a decline in 2019. From 2019 to 2024, the ratio fluctuated between approximately 28 and 37, with no clear directional trend.

The period between 2018 and 2020 shows a particularly notable shift. The P/E ratio increased sharply in 2018, then decreased in 2019, suggesting a potential correction or change in market sentiment. The subsequent years demonstrate a more stable, albeit fluctuating, P/E ratio. The most recent observations indicate a slight decrease in the P/E ratio from 37.32 in 2021 to 34.50 in 2026.

Recent Performance (2020-2026)
The P/E ratio experienced a high of 37.32 in 2021, followed by a decrease to 28.48 in 2022. It then recovered to 33.16 in 2023 and settled at 34.50 in 2026. This recent period suggests a degree of market stabilization, although volatility remains present. The fluctuations may be linked to changes in earnings expectations or broader market conditions.

The observed P/E ratio values suggest the market’s valuation of the company’s earnings has varied considerably over the analyzed timeframe. The fluctuations likely reflect changes in investor confidence, growth expectations, and overall economic conditions. The ratio’s movement should be considered in conjunction with other financial metrics and qualitative factors to gain a comprehensive understanding of the company’s valuation.


Comparison to Competitors


Comparison to Sector (Chemicals)


Comparison to Industry (Materials)