Intrinsic value of Sherwin-Williams - SHW

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$357.10

  Intrinsic Value

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  Value-price divergence*

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*Intrinsic value change (in %) minus stock price change (in %) in the past 12 months.

We calculate the intrinsic value of SHW stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 2016), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 33.1

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2016(a)
   2017
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  4.56
  6.80
  6.62
  6.46
  6.31
  6.18
  6.06
  5.96
  5.86
  5.77
  5.70
  5.63
  5.56
  5.51
  5.46
  5.41
  5.37
  5.33
  5.30
  5.27
  5.24
  5.22
  5.20
  5.18
  5.16
  5.14
  5.13
  5.12
  5.10
  5.09
  5.08
Revenue, $m
  11,856
  12,662
  13,500
  14,372
  15,280
  16,224
  17,208
  18,233
  19,301
  20,416
  21,579
  22,793
  24,062
  25,387
  26,773
  28,222
  29,737
  31,323
  32,983
  34,722
  36,542
  38,449
  40,447
  42,542
  44,737
  47,038
  49,450
  51,980
  54,634
  57,417
  60,336
Variable operating expenses, $m
 
  9,590
  10,218
  10,870
  11,549
  12,256
  12,992
  13,760
  14,560
  15,394
  16,264
  17,061
  18,010
  19,002
  20,039
  21,124
  22,258
  23,445
  24,688
  25,989
  27,352
  28,779
  30,275
  31,842
  33,485
  35,207
  37,013
  38,907
  40,893
  42,976
  45,161
Fixed operating expenses, $m
 
  1,184
  1,213
  1,244
  1,275
  1,307
  1,339
  1,373
  1,407
  1,442
  1,478
  1,515
  1,553
  1,592
  1,632
  1,673
  1,715
  1,757
  1,801
  1,846
  1,893
  1,940
  1,988
  2,038
  2,089
  2,141
  2,195
  2,250
  2,306
  2,364
  2,423
Total operating expenses, $m
  10,116
  10,774
  11,431
  12,114
  12,824
  13,563
  14,331
  15,133
  15,967
  16,836
  17,742
  18,576
  19,563
  20,594
  21,671
  22,797
  23,973
  25,202
  26,489
  27,835
  29,245
  30,719
  32,263
  33,880
  35,574
  37,348
  39,208
  41,157
  43,199
  45,340
  47,584
Operating income, $m
  1,740
  1,888
  2,069
  2,258
  2,455
  2,661
  2,876
  3,100
  3,334
  3,580
  3,836
  4,217
  4,498
  4,793
  5,101
  5,425
  5,764
  6,121
  6,494
  6,886
  7,298
  7,730
  8,184
  8,661
  9,162
  9,689
  10,242
  10,824
  11,435
  12,077
  12,752
EBITDA, $m
  1,938
  2,115
  2,304
  2,501
  2,706
  2,920
  3,144
  3,377
  3,621
  3,877
  4,144
  4,423
  4,716
  5,022
  5,343
  5,680
  6,033
  6,403
  6,792
  7,200
  7,628
  8,078
  8,550
  9,046
  9,566
  10,114
  10,689
  11,293
  11,928
  12,596
  13,297
Interest expense (income), $m
  154
  96
  118
  141
  165
  190
  216
  243
  271
  301
  332
  364
  397
  432
  468
  507
  547
  588
  632
  678
  726
  776
  828
  883
  941
  1,001
  1,065
  1,131
  1,201
  1,274
  1,351
Earnings before tax, $m
  1,595
  1,792
  1,951
  2,117
  2,290
  2,471
  2,660
  2,857
  3,063
  3,279
  3,505
  3,854
  4,101
  4,361
  4,633
  4,918
  5,218
  5,532
  5,862
  6,209
  6,572
  6,955
  7,356
  7,778
  8,221
  8,688
  9,177
  9,692
  10,234
  10,803
  11,402
Tax expense, $m
  462
  484
  527
  572
  618
  667
  718
  771
  827
  885
  946
  1,040
  1,107
  1,177
  1,251
  1,328
  1,409
  1,494
  1,583
  1,676
  1,775
  1,878
  1,986
  2,100
  2,220
  2,346
  2,478
  2,617
  2,763
  2,917
  3,078
Net income, $m
  1,133
  1,308
  1,424
  1,546
  1,672
  1,804
  1,942
  2,085
  2,236
  2,393
  2,558
  2,813
  2,994
  3,183
  3,382
  3,590
  3,809
  4,039
  4,279
  4,532
  4,798
  5,077
  5,370
  5,678
  6,002
  6,342
  6,699
  7,075
  7,471
  7,886
  8,323

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  890
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  6,753
  6,262
  6,677
  7,108
  7,557
  8,024
  8,510
  9,017
  9,546
  10,097
  10,672
  11,273
  11,900
  12,555
  13,241
  13,957
  14,707
  15,491
  16,312
  17,172
  18,072
  19,015
  20,004
  21,039
  22,125
  23,263
  24,456
  25,707
  27,020
  28,396
  29,840
Adjusted assets (=assets-cash), $m
  5,863
  6,262
  6,677
  7,108
  7,557
  8,024
  8,510
  9,017
  9,546
  10,097
  10,672
  11,273
  11,900
  12,555
  13,241
  13,957
  14,707
  15,491
  16,312
  17,172
  18,072
  19,015
  20,004
  21,039
  22,125
  23,263
  24,456
  25,707
  27,020
  28,396
  29,840
Revenue / Adjusted assets
  2.022
  2.022
  2.022
  2.022
  2.022
  2.022
  2.022
  2.022
  2.022
  2.022
  2.022
  2.022
  2.022
  2.022
  2.022
  2.022
  2.022
  2.022
  2.022
  2.022
  2.022
  2.022
  2.022
  2.022
  2.022
  2.022
  2.022
  2.022
  2.022
  2.022
  2.022
Average production assets, $m
  1,324
  1,418
  1,512
  1,610
  1,711
  1,817
  1,927
  2,042
  2,162
  2,287
  2,417
  2,553
  2,695
  2,843
  2,999
  3,161
  3,331
  3,508
  3,694
  3,889
  4,093
  4,306
  4,530
  4,765
  5,010
  5,268
  5,538
  5,822
  6,119
  6,431
  6,758
Working capital, $m
  798
  696
  743
  790
  840
  892
  946
  1,003
  1,062
  1,123
  1,187
  1,254
  1,323
  1,396
  1,472
  1,552
  1,636
  1,723
  1,814
  1,910
  2,010
  2,115
  2,225
  2,340
  2,461
  2,587
  2,720
  2,859
  3,005
  3,158
  3,318
Total debt, $m
  1,953
  1,493
  1,785
  2,089
  2,405
  2,735
  3,078
  3,435
  3,808
  4,196
  4,602
  5,025
  5,467
  5,930
  6,413
  6,918
  7,446
  7,999
  8,578
  9,184
  9,819
  10,484
  11,181
  11,911
  12,676
  13,478
  14,320
  15,202
  16,127
  17,097
  18,115
Total liabilities, $m
  4,874
  4,415
  4,707
  5,011
  5,327
  5,657
  6,000
  6,357
  6,730
  7,118
  7,524
  7,947
  8,389
  8,852
  9,335
  9,840
  10,368
  10,921
  11,500
  12,106
  12,741
  13,406
  14,103
  14,833
  15,598
  16,400
  17,242
  18,124
  19,049
  20,019
  21,037
Total equity, $m
  1,878
  1,847
  1,970
  2,097
  2,229
  2,367
  2,511
  2,660
  2,816
  2,979
  3,148
  3,325
  3,510
  3,704
  3,906
  4,117
  4,339
  4,570
  4,812
  5,066
  5,331
  5,610
  5,901
  6,207
  6,527
  6,863
  7,215
  7,584
  7,971
  8,377
  8,803
Total liabilities and equity, $m
  6,752
  6,262
  6,677
  7,108
  7,556
  8,024
  8,511
  9,017
  9,546
  10,097
  10,672
  11,272
  11,899
  12,556
  13,241
  13,957
  14,707
  15,491
  16,312
  17,172
  18,072
  19,016
  20,004
  21,040
  22,125
  23,263
  24,457
  25,708
  27,020
  28,396
  29,840
Debt-to-equity ratio
  1.040
  0.810
  0.910
  1.000
  1.080
  1.160
  1.230
  1.290
  1.350
  1.410
  1.460
  1.510
  1.560
  1.600
  1.640
  1.680
  1.720
  1.750
  1.780
  1.810
  1.840
  1.870
  1.890
  1.920
  1.940
  1.960
  1.980
  2.000
  2.020
  2.040
  2.060
Adjusted equity ratio
  0.176
  0.295
  0.295
  0.295
  0.295
  0.295
  0.295
  0.295
  0.295
  0.295
  0.295
  0.295
  0.295
  0.295
  0.295
  0.295
  0.295
  0.295
  0.295
  0.295
  0.295
  0.295
  0.295
  0.295
  0.295
  0.295
  0.295
  0.295
  0.295
  0.295
  0.295

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  1,133
  1,308
  1,424
  1,546
  1,672
  1,804
  1,942
  2,085
  2,236
  2,393
  2,558
  2,813
  2,994
  3,183
  3,382
  3,590
  3,809
  4,039
  4,279
  4,532
  4,798
  5,077
  5,370
  5,678
  6,002
  6,342
  6,699
  7,075
  7,471
  7,886
  8,323
Depreciation, amort., depletion, $m
  198
  227
  235
  243
  251
  259
  268
  277
  287
  297
  308
  206
  217
  229
  242
  255
  269
  283
  298
  314
  330
  347
  365
  384
  404
  425
  447
  469
  493
  519
  545
Funds from operations, $m
  1,121
  1,535
  1,659
  1,788
  1,923
  2,063
  2,210
  2,363
  2,523
  2,691
  2,866
  3,019
  3,211
  3,413
  3,624
  3,845
  4,078
  4,321
  4,577
  4,846
  5,128
  5,424
  5,735
  6,062
  6,406
  6,767
  7,146
  7,545
  7,964
  8,405
  8,868
Change in working capital, $m
  -188
  44
  46
  48
  50
  52
  54
  56
  59
  61
  64
  67
  70
  73
  76
  80
  83
  87
  91
  96
  100
  105
  110
  115
  121
  127
  133
  139
  146
  153
  161
Cash from operations, $m
  1,309
  1,519
  1,613
  1,740
  1,873
  2,011
  2,156
  2,306
  2,464
  2,629
  2,802
  2,952
  3,142
  3,340
  3,548
  3,766
  3,994
  4,234
  4,486
  4,750
  5,028
  5,319
  5,625
  5,947
  6,285
  6,640
  7,013
  7,406
  7,818
  8,252
  8,708
Maintenance CAPEX, $m
  0
  -107
  -114
  -122
  -130
  -138
  -147
  -155
  -165
  -174
  -184
  -195
  -206
  -217
  -229
  -242
  -255
  -269
  -283
  -298
  -314
  -330
  -347
  -365
  -384
  -404
  -425
  -447
  -469
  -493
  -519
New CAPEX, $m
  -239
  -95
  -94
  -98
  -102
  -106
  -110
  -115
  -120
  -125
  -130
  -136
  -142
  -148
  -155
  -162
  -170
  -178
  -186
  -195
  -204
  -214
  -224
  -235
  -246
  -258
  -270
  -283
  -297
  -312
  -327
Cash from investing activities, $m
  -304
  -202
  -208
  -220
  -232
  -244
  -257
  -270
  -285
  -299
  -314
  -331
  -348
  -365
  -384
  -404
  -425
  -447
  -469
  -493
  -518
  -544
  -571
  -600
  -630
  -662
  -695
  -730
  -766
  -805
  -846
Free cash flow, $m
  1,005
  1,317
  1,405
  1,521
  1,641
  1,767
  1,899
  2,036
  2,180
  2,330
  2,487
  2,621
  2,794
  2,974
  3,163
  3,362
  3,570
  3,788
  4,017
  4,258
  4,510
  4,776
  5,054
  5,347
  5,655
  5,978
  6,318
  6,676
  7,052
  7,447
  7,862
Issuance/(repayment) of debt, $m
  -2
  281
  292
  304
  316
  329
  343
  357
  373
  389
  406
  423
  442
  462
  483
  505
  528
  553
  579
  606
  635
  665
  697
  730
  765
  802
  841
  882
  925
  970
  1,018
Issuance/(repurchase) of shares, $m
  87
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  5
  281
  292
  304
  316
  329
  343
  357
  373
  389
  406
  423
  442
  462
  483
  505
  528
  553
  579
  606
  635
  665
  697
  730
  765
  802
  841
  882
  925
  970
  1,018
Total cash flow (excl. dividends), $m
  996
  1,598
  1,697
  1,825
  1,958
  2,097
  2,242
  2,394
  2,552
  2,719
  2,893
  3,045
  3,236
  3,436
  3,646
  3,867
  4,098
  4,341
  4,596
  4,864
  5,145
  5,441
  5,751
  6,077
  6,420
  6,781
  7,160
  7,558
  7,977
  8,417
  8,880
Retained Cash Flow (-), $m
  -1,010
  -118
  -122
  -127
  -132
  -138
  -144
  -150
  -156
  -163
  -170
  -177
  -185
  -193
  -202
  -211
  -221
  -231
  -242
  -254
  -266
  -278
  -292
  -306
  -320
  -336
  -352
  -369
  -387
  -406
  -426
Prev. year cash balance distribution, $m
 
  149
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
 
  1,629
  1,575
  1,697
  1,825
  1,959
  2,098
  2,244
  2,397
  2,556
  2,723
  2,868
  3,051
  3,243
  3,444
  3,655
  3,877
  4,110
  4,354
  4,610
  4,879
  5,162
  5,459
  5,772
  6,100
  6,445
  6,808
  7,189
  7,590
  8,011
  8,454
Discount rate, %
 
  4.30
  4.52
  4.74
  4.98
  5.23
  5.49
  5.76
  6.05
  6.35
  6.67
  7.00
  7.35
  7.72
  8.11
  8.51
  8.94
  9.39
  9.86
  10.35
  10.87
  11.41
  11.98
  12.58
  13.21
  13.87
  14.56
  15.29
  16.05
  16.86
  17.70
PV of cash for distribution, $m
 
  1,562
  1,442
  1,477
  1,503
  1,518
  1,523
  1,516
  1,498
  1,468
  1,428
  1,362
  1,302
  1,233
  1,156
  1,073
  985
  894
  802
  710
  620
  534
  453
  378
  311
  251
  199
  154
  117
  87
  64
Current shareholders' claim on cash, %
  100
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0

The Sherwin-Williams Company develops, manufactures, distributes, and sells paints, coatings, and related products to professional, industrial, commercial, and retail customers primarily in North and South America, the Caribbean, Europe, and Asia. The company operates in four segments: Paint Stores Group, Consumer Group, Global Finishes Group, and Latin America Coatings Group. It offers architectural paint and coatings, protective and marine products, automotive finishes and refinish products, original equipment manufacturer product finishes, and related items under the Sherwin-Williams brand. The company also licenses technology and trade names. As of December 31, 2016, its Paint Stores Group segment operated 4,180 company-operated specialty paint stores; Global Finishes Group segment operated 288 company-operated branches; and Latin America Coatings Group segment operated 339 company-operated stores. The company also sells its products through direct sales staff and outside sales representatives to retailers, dealers, jobbers, licensees and other third party distributors. The Sherwin-Williams Company was founded in 1866 and is headquartered in Cleveland, Ohio.

FINANCIAL RATIOS  of  Sherwin-Williams (SHW)

Valuation Ratios
P/E Ratio 29.3
Price to Sales 2.8
Price to Book 17.7
Price to Tangible Book
Price to Cash Flow 25.4
Price to Free Cash Flow 31
Growth Rates
Sales Growth Rate 4.6%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 2.1%
Cap. Spend. - 3 Yr. Gr. Rate 7.4%
Financial Strength
Quick Ratio 1
Current Ratio 0.2
LT Debt to Equity 64.5%
Total Debt to Equity 104%
Interest Coverage 11
Management Effectiveness
Return On Assets 19.8%
Ret/ On Assets - 3 Yr. Avg. 18%
Return On Total Capital 34.1%
Ret/ On T. Cap. - 3 Yr. Avg. 33%
Return On Equity 82.5%
Return On Equity - 3 Yr. Avg. 86%
Asset Turnover 1.9
Profitability Ratios
Gross Margin 49.9%
Gross Margin - 3 Yr. Avg. 48.5%
EBITDA Margin 16.4%
EBITDA Margin - 3 Yr. Avg. 15.3%
Operating Margin 14.7%
Oper. Margin - 3 Yr. Avg. 13.5%
Pre-Tax Margin 13.5%
Pre-Tax Margin - 3 Yr. Avg. 12.8%
Net Profit Margin 9.6%
Net Profit Margin - 3 Yr. Avg. 8.9%
Effective Tax Rate 29%
Eff/ Tax Rate - 3 Yr. Avg. 30.7%
Payout Ratio 27.5%

SHW stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the SHW stock intrinsic value calculation we used $11856 million for the last fiscal year's total revenue generated by Sherwin-Williams. The default revenue input number comes from 2016 income statement of Sherwin-Williams. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our SHW stock valuation model: a) initial revenue growth rate of 6.8% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 4.3%, whose default value for SHW is calculated based on our internal credit rating of Sherwin-Williams, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Sherwin-Williams.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of SHW stock the variable cost ratio is equal to 75.8%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $1155 million in the base year in the intrinsic value calculation for SHW stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 7.9% for Sherwin-Williams.

Corporate tax rate of 27% is the nominal tax rate for Sherwin-Williams. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the SHW stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for SHW are equal to 11.2%.

Life of production assets of 12.4 years is the average useful life of capital assets used in Sherwin-Williams operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for SHW is equal to 5.5%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $1878 million for Sherwin-Williams - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 92.815 million for Sherwin-Williams is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Sherwin-Williams at the current share price and the inputted number of shares is $33.1 billion.


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Stock chart of SHW Financial statements of SHW Annual reports of SHW
Valuation of Stocks

The paper VALUATION OF STOCKS: The Quest for Intrinsic Value provides a detailed description of our valuation model and discloses the calculation algorithm.

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