What is The Sherwin-Williams Company (SHW) DCF Fair Value and Intrinsic Value in 2026?

The Sherwin-Williams Company (SHW) intrinsic value is calculated using conservative multi-stage Discounted Cash Flow (DCF) models, 5-year free cash flow trajectories, Graham Numbers, and owner earnings multiples. LocalAlpha tracks real-time margin of safety against live market prices.

What is The Sherwin-Williams Company's historical Return on Invested Capital (ROIC) and Moat Rating?

The Sherwin-Williams Company operates in the Basic Materials sector (Specialty Chemicals) with an economic moat rating of WIDE. LocalAlpha tracks 5-year audited quarterly ROIC, operating margin stability, and balance sheet solvency ratios.

What is The Sherwin-Williams Company's financial health rating and Piotroski F-Score?

The Sherwin-Williams Company's balance sheet quality is evaluated using the 9-point Piotroski F-Score, Altman Z-Score solvency model, debt-to-equity ratio, and quick/current liquidity coverage to guard against financial distress.

How does LocalAlpha monitor The Sherwin-Williams Company (SHW) for quarterly SEC filing thesis breaks?

LocalAlpha audits The Sherwin-Williams Company's 10-K, 10-Q, and 8-K regulatory filings on SEC EDGAR within 15 minutes of release. If reported metrics breach an investor's custom ROIC floor, operating margin boundary, or qualitative risk criteria, an autonomous breach audit is dispatched immediately.

StocksSHW

SHW

Sherwin-Williams Company (The)Basic Materials / Specialty ChemicalsINTACT

The Sherwin-Williams Company engages in the development, manufacture, distribution, and sale of paint, coatings, and related products to professional, industrial, commercial and retail customers. The company operates through three segments: Paint Stores Group, Consumer Brands Group, and Performance Coatings Group. The Paint Stores Group segment offers architectural paint and coatings; protective and marine products; and OEM product finishes and related products for architectural and industrial paint contractors, and do-it-yourself homeowners under the Sherwin-Williams brand. The Consumer Brands Group segment supplies a portfolio of branded and private-label architectural paints, stains, varnishes, industrial products, wood finishes products, wood preservatives, applicators, corrosion inhibitors, aerosols, caulks, and adhesives to retailers, including home centers and hardware stores, and dedicated dealers and distributors. The Performance Coatings Group segment develops and sells industrial coatings for wood finishing and general industrial applications; automotive refinish products; protective and marine coatings; coil coatings; packaging coatings; and performance-based resins and colorants. This segment serves retailers, dealers, jobbers, licensees, and other third-party distributors. The company operates in North America, South America, the Caribbean, Europe, Asia, and Australia. The Sherwin-Williams Company was founded in 1866 and is headquartered in Cleveland, Ohio.

Share Price

$323.31

52W: $289.86 - $377.77

DCF Fair Value

$168.95

-91.4% Premium

Thesis Hub

P/E (TTM)

29.9x

ROIC

13.6%

Operating Margin

18.1%

FCF Yield

3.2%

Debt / Equity

3.9x

Piotroski Score

6/9

Altman Z-Score

3.42

Market Cap

$78.5B

Price vs. Intrinsic Value Corridor

Overvalued vs DCF ($168.95)

Historical market price overlaid against conservative DCF Fair Value & Benjamin Graham Margin of Safety bands.

Period Return (1Y)

—()

Period Range

$— - $—

DCF Fair Value

$168.95

MOS Buy Target (-25%)

$126.71

Valuation Overlays: DCF Fair Value ($168.95) 25% MOS Buy Target ($126.71) Revised Graham ($219.20) Graham Number ($62.36)

2-Stage Discounted Cash Flow (DCF) Workbench

Conservative intrinsic value model based on owner cash generation over a 10-year investment horizon. Opens with LocalAlpha's baseline assumptions (matching the fair value shown above) — adjust any input to stress-test.

Current Market Price

$323.31

DCF Fair Value

$169.26

-91% Premium

Starting Free Cash Flow ($M)$2,506M

$100M$2,506M (Reported)$50,000M

Stage 1 Growth (Years 1-5)9.1%

-5%10% (Target)35%

Stage 2 Growth (Years 6-10)4.5%

0%5%20%

Discount Rate (WACC / Hurdle)9.0%

6%9% (Standard)15% (High Risk)

Terminal Perpetual Growth2.5%

1% (GDP Floor)2.5% (Inflation)4.0%

Net Debt ($M)$14,700M

-$100B CashBalance Sheet+$150B Debt

10-Yr PV of Cash Flows

$23.7B

PV of Terminal Value

$32.2B

Implied Enterprise Value

$55.8B

Implied Equity Value

$41.1B

Year	Yr 1	Yr 2	Yr 3	Yr 4	Yr 5	Yr 6	Yr 7	Yr 8	Yr 9	Yr 10
Projected FCF ($M)	$2,734	$2,983	$3,254	$3,550	$3,874	$4,048	$4,230	$4,420	$4,619	$4,827
Present Value (PV)	$2,508	$2,511	$2,513	$2,515	$2,518	$2,414	$2,314	$2,218	$2,127	$2,039

Benjamin Graham & Buffett Value Models

Classical deep value metrics based on asset backing, normalized earnings power, and owner cash yield.

Graham Number-418.5% Premium

$62.35

Calculated as √(22.5 × EPS × BVPS). The maximum theoretical price a defensive investor should pay based purely on asset book value and current earnings.

EPS: $10.82BVPS: $15.97

Revised Graham Formula-47.5% Premium

$219.20

Formula: V = (EPS × (8.5 + 2g) × 4.4) / Y where g is the conservative 7-10 yr growth rate and Y is AAA Bond Yield.

Growth Rate (g%)

Bond Yield (Y%)

Buffett Owner Earnings3% Yield

$9.80 / share

True distributable cash flow: Net Income + D&A - Maintenance CapEx. Reflects the cash Buffett would extract without hurting unit volume.

Total: $2.4BYield: 3%

Reverse DCF: Market Growth Expectation

FAIR BARRIER

11.6% CAGR (Next 10 Yrs)

At the current price of $323.31, the market is assuming the business will compound Free Cash Flow at 11.6% per year for the next decade with a 9% hurdle rate.

Value Investor Verdict

ℹ Fair expectations: Requires steady execution.

Autonomous Thesis Underwriting

Surveil SHW with Mathematical Margin of Safety Rules

Set non-negotiable floor rules for Sherwin-Williams Company (The). If a newly filed quarterly 10-Q breaks your ROIC floor, operating margin boundary, or balance sheet leverage rules, receive an autonomous breach audit within 15 minutes.

Buffett Quality

ROIC > 15% • Margin > 15% • D/E < 0.5x

Margin Floor Guard

Current Margin 18.1% • Floor > 10%

Solvency Guard

Altman-Z > 2.6 • Current Ratio > 1.5x

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Frequently Asked Questions: Sherwin-Williams Company (The) (SHW) Intrinsic Valuation

Audited fundamentals, DCF intrinsic value sensitivity, and thesis break detection parameters for Sherwin-Williams Company (The).

Based on institutional multi-stage Discounted Cash Flow (DCF) modeling on audited SEC cash flows, Sherwin-Williams Company (The) has an estimated DCF intrinsic fair value of $168.95 per share compared to its current market price of $323.31. This represents an estimated 91.4% premium over fair value. Additionally, its classic Benjamin Graham Number stands at $62.36.