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DCF Valuation
Base-case fair value
$193.98
Intrinsic $258.64 · 25% MOS
Current price: $320.79
Base-case summary
Our base-case DCF for Sherwin Williams Co (SHW) projects 10 years of free cash flow growth at 9.2% for years 1–5 and 4.6% for years 6–10, anchored to 9.2% historical FCF growth, then applies a 2.5% perpetual growth rate and a 8.0% discount rate. Starting from $2.9B in trailing free cash flow, this produces an intrinsic value of $258.64 per share. A 25% safety margin gives a fair value of $193.98, suggesting the stock is currently 40% overvalued against the $320.79 market price.
See 3 scenarios side by side
Conservative, Base, and Optimistic fair values, plus the sensitivity matrix and FCF history. Free account.
Model inputs
TTM Free Cash Flow
$2.9B
Cash & equivalents
$217M
Total debt
$13.8B
Shares outstanding
248M