Recent performance and context for Sherwin-Williams
Sherwin-Williams (SHW) has seen mixed returns recently, with the stock up about 1.2% over the past day but down around 4% over the past week and month, and roughly 12% over the past 3 months.
See our latest analysis for Sherwin-Williams.
At a share price of US$296.49, Sherwin-Williams has experienced short-term share price weakness, with the 1-year total shareholder return also down, although the 3-year total shareholder return remains positive overall.
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With Sherwin-Williams shares down over the past year but still backed by ongoing revenue and net income growth, the key question for you is whether today’s valuation reflects a discount or whether the market is already pricing in future growth.
Most Popular Narrative: 23.6% Undervalued
At a last close of $296.49 versus a narrative fair value of $388.14, the current Sherwin-Williams price sits well below what this widely followed framework suggests, putting the spotlight on the assumptions behind that gap.
The analysts have a consensus price target of $379.524 for Sherwin-Williams based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $420.0, and the most bearish reporting a price target of just $258.0.
Want to see what is driving that valuation spread? The narrative leans on steady top line expansion, firmer margins, and a rich earnings multiple that hinges on consistent execution.
Result: Fair Value of $388.14 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, you also need to factor in risks, including prolonged weak demand in key end markets and ongoing supply chain inefficiencies that could pressure margins.
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Next Steps
Sentiment around Sherwin-Williams in this article is mixed. It may be useful to move quickly, review the underlying data, and decide where you stand by checking the 3 key rewards and 1 important warning sign
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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