Using the PEG framework with analyst consensus forward EPS growth of 13.0% plus 1.0% dividend yield, The Sherwin-Williams Company has a fair value of $155.29 based on NTM EPS (FY2026) of $11.90. The current PEG ratio is 2.06.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG works well for steady growers with predictable earnings.
| EPS Growth RateForward | 12.0% |
| Dividend Yield | +1.0% |
| Adjusted Growth (clamped 8–25%) | 13.0% |
| Fair P/E | 13.0x |
| NTM EPS (FY2026) | $11.90 |
| Fair Value | $155.29 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $10.27 | — | — |
| FY2026E | $11.90 | +15.9% | 16 |
| FY2027E | $13.45 | +13.0% | 16 |
| FY2028E | $15.07 | +12.1% | 11 |
| FY2029E | $16.19 | +7.4% | 5 |
4Y Forward EPS CAGR: 12.0%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $1.9B | $6.98 | — |
| FY2022 | $2.0B | $7.72 | +10.6% |
| FY2023 | $2.4B | $9.25 | +19.8% |
| FY2024 | $2.7B | $10.55 | +14.1% |
| FY2025 | $2.6B | $10.27 | -2.7% |
4Y Historical EPS CAGR: 10.1%
The PEG Fair Value uses the Price/Earnings-to-Growth framework. A stock is fairly valued when its P/E ratio equals its earnings growth rate (PEG = 1.0). This model adds dividend yield to the growth rate per the original PEGY formula.
Growth rate priority: analyst consensus forward EPS CAGR (when ≥ 3 analysts cover the stock), falling back to historical EPS CAGR. Using EPS rather than net income avoids distortion from share buybacks. The growth rate is clamped between 8% and 25% — below 8% would undervalue stable earners, while above 25% would overvalue unsustainable spikes.