Sherwin-Williams

Methodology

Sherwin-Williams' architectural coatings business generates relatively stable earnings from professional and DIY paint demand tied to housing activity. Store density and pricing power create visibility. The calculation works reasonably well when normalizing for housing cycle impacts and raw material cost fluctuations in the paint and coatings business.

Methodology

Sherwin-Williams consistently commands premium PEG ratios reflecting market leadership in architectural paint, store network advantages, and pricing discipline. While expensive versus commodity chemical companies, the brand strength and professional contractor relationships justify valuations. Compare to Sherwin's historical range and PPG while considering the architectural versus industrial mix.

Methodology

Sherwin-Williams offers a meaningful dividend with decades of consecutive increases, making PEGY important for total return evaluation. The dividend provides reliable income alongside steady market share gains. For this paint leader, dividend consistency matters as much as earnings growth in attracting long-term investors.