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Sherwin-Williams Co. – Paint and Coating Manufacturing
Founded in 1866, The Sherwin-Williams Company is a global leader in the manufacture, development, distribution, and sale of paints, coatings and related products to professional, industrial, commercial, and retail customers. Sherwin-Williams manufactures products under well-known brands such as Sherwin-Williams®, Valspar®, HGTV HOME® by Sherwin-Williams, Dutch Boy®, Krylon®, Minwax®, Thompson's® Water Seal®, Cabot® and many more. With global headquarters in Cleveland, Ohio, Sherwin-Williams® branded products are sold exclusively through a chain of more than 4,900 company operated stores and facilities, while the company's other brands are sold through leading mass merchandisers, home centers, independent paint dealers, hardware stores, automotive retailers, and industrial distributors. The Sherwin-Williams Performance Coatings Group supplies a broad range of highly-engineered solutions for the construction, industrial, packaging and transportation markets in more than 120 countries around the world.
Analysis Results
Intrinsic Value $291.15
Latest Price $229.14
Relative Value 21% undervalued
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Cash Flow (Billions)
Analysis Parameters
New Ticker
Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 14.1%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 8.2%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 14.1%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2023 3.32 3.07
2024 3.79 3.24
2025 4.32 3.42
2026 4.93 3.6
2027 5.63 3.8
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 92.9 billion. This corresponds to a present value of 58.0 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 17.1 billion. Adding in the terminal value gives a total present value of 75.1 billion.

There are presently 258.0 million outstanding shares, so the intrinsic value per share is 291.15.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 5,907,700,000
Current Cash 198,800,000
Current Liabilities 5,960,700,000
Current Debt 978,700,000
Non-Cash Working Capital (NCWC) 726,900,000
Change in NCWC 534,300,000
EBIT 3,000,600,000
Tax Provision 553,000,000
Depreciation and Amortization 581,100,000
Capital Expenditure -644,500,000
Unlevered Free Cash Flow 2,826,623,469
Current Assets 5,053,700,000
Current Cash 165,700,000
Current Liabilities 5,719,500,000
Current Debt 1,024,100,000
Non-Cash Working Capital (NCWC) 192,600,000
Change in NCWC 397,000,000
EBIT 2,664,700,000
Tax Provision 384,200,000
Depreciation and Amortization 572,600,000
Capital Expenditure -372,000,000
Unlevered Free Cash Flow 2,807,004,376
Current Assets 4,591,400,000
Current Cash 226,600,000
Current Liabilities 4,594,400,000
Current Debt 25,200,000
Non-Cash Working Capital (NCWC) -204,400,000
Change in NCWC -786,900,000
EBIT 2,854,200,000
Tax Provision 488,800,000
Depreciation and Amortization 581,400,000
Capital Expenditure -303,800,000
Unlevered Free Cash Flow 1,791,100,000
Current Assets 4,631,700,000
Current Cash 161,800,000
Current Liabilities 4,521,900,000
Current Debt 634,500,000
Non-Cash Working Capital (NCWC) 582,500,000
Change in NCWC 55,671,000
EBIT 2,425,400,000
Tax Provision 440,500,000
Depreciation and Amortization 574,900,000
Capital Expenditure -328,900,000
Unlevered Free Cash Flow 2,187,970,838
Current Assets 4,344,487,000
Current Cash 155,505,000
Current Liabilities 4,297,747,000
Current Debt 635,594,000
Non-Cash Working Capital (NCWC) 526,829,000
Change in NCWC -382,528,000
EBIT 1,890,373,000
Tax Provision 250,904,000
Depreciation and Amortization 596,281,000
Capital Expenditure -250,957,000
Unlevered Free Cash Flow 1,504,327,645
Current Assets 4,465,840,000
Current Cash 204,213,000
Current Liabilities 3,987,180,000
Current Debt 634,910,000
Non-Cash Working Capital (NCWC) 909,357,000
Change in NCWC 259,817,000
EBIT 1,773,589,000
Tax Provision -285,583,000
Depreciation and Amortization 491,761,000
Capital Expenditure -222,767,000
Unlevered Free Cash Flow 2,302,400,000
Current Assets 3,627,298,000
Current Cash 889,793,000
Current Liabilities 2,829,179,000
Current Debt 741,214,000
Non-Cash Working Capital (NCWC) 649,540,000
Change in NCWC 295,653,000
EBIT 1,719,898,000
Tax Provision 462,530,000
Depreciation and Amortization 197,711,000
Capital Expenditure -239,026,000
Unlevered Free Cash Flow 1,475,559,993
Current Assets 2,658,874,000
Current Cash 205,744,000
Current Liabilities 2,141,859,000
Current Debt 42,616,000
Non-Cash Working Capital (NCWC) 353,887,000
Change in NCWC -174,196,000
EBIT 1,615,440,000
Tax Provision 495,117,000
Depreciation and Amortization 198,562,000
Capital Expenditure -234,340,000
Unlevered Free Cash Flow 889,101,014
Current Assets 2,566,780,000
Current Cash 40,732,000
Current Liabilities 2,680,666,000
Current Debt 682,701,000
Non-Cash Working Capital (NCWC) 528,083,000
Change in NCWC 43,313,000
EBIT 1,305,472,000
Tax Provision 392,339,000
Depreciation and Amortization 198,945,000
Capital Expenditure -200,545,000
Unlevered Free Cash Flow 940,113,791
Current Assets 3,158,717,000
Current Cash 744,889,000
Current Liabilities 2,528,557,000
Current Debt 599,499,000
Non-Cash Working Capital (NCWC) 484,770,000
Change in NCWC 1,834,000
EBIT 1,148,885,000
Tax Provision 333,397,000
Depreciation and Amortization 187,794,000
Capital Expenditure -166,680,000
Unlevered Free Cash Flow 819,116,953
Current Assets 3,149,238,000
Current Cash 862,590,000
Current Liabilities 1,876,436,000
Current Debt 72,724,000
Non-Cash Working Capital (NCWC) 482,936,000
Change in NCWC 62,564,000
EBIT 939,842,000
Tax Provision 276,275,000
Depreciation and Amortization 179,202,000
Capital Expenditure -157,112,000
Unlevered Free Cash Flow 738,314,722

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