Stock Analysis on Net

Sherwin-Williams Co. (NYSE:SHW)

$24.99

Price to Sales (P/S)
since 2005

Microsoft Excel

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Calculation

Sherwin-Williams Co., P/S, 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-sales (P/S) ratio for the period examined demonstrates considerable fluctuation. Initially, the ratio exhibited volatility, followed by a period of relative stability, and then a significant increase before experiencing a recent decline.

Initial Period (2006-2008)
The P/S ratio began at 0.82 in 2006, increased to 1.15 in 2007, and then decreased back to 0.82 in 2008. This suggests initial investor optimism followed by a correction, potentially influenced by broader economic conditions.
Period of Stability (2009-2011)
From 2009 through 2011, the P/S ratio remained relatively stable, ranging from 0.68 to 1.14. This indicates a period of consistent valuation relative to sales during a time of economic recovery following the 2008 financial crisis.
Increasing Valuation (2012-2018)
Starting in 2012, the P/S ratio began a sustained upward trend, increasing from 1.20 to a peak of 2.50 in 2018. This suggests growing investor confidence and a willingness to pay more for each dollar of sales, potentially driven by improved company performance or market expectations. The ratio experienced its highest values between 2015 and 2018, ranging from 2.11 to 2.50.
Recent Fluctuations (2019-2026)
Following the peak in 2018, the P/S ratio experienced a decline to 2.33 in 2019. It then increased significantly to 3.81 in 2024, before decreasing to 3.76 in 2025 and 3.57 in 2026. This recent volatility could be attributed to factors such as changing market conditions, investor sentiment, or company-specific events. The ratio in 2026 is still higher than the levels observed before 2019.
Sales per Share Trend
Concurrent with the P/S ratio trends, sales per share generally increased over the period, rising from 17.72 in 2006 to 95.14 in 2025 and 91.89 in 2026. This growth in sales per share likely contributed to the increasing P/S ratio observed during much of the period, as investors were willing to pay a premium for increasing sales.

Overall, the P/S ratio demonstrates a dynamic relationship with sales per share, reflecting changing investor perceptions and market conditions. The recent fluctuations warrant further investigation to determine the underlying drivers and potential implications for future valuation.


Comparison to Competitors


Comparison to Sector (Chemicals)


Comparison to Industry (Materials)