SHWCAUTIOUS

EV/EBITDA

22.1x

Updated 320h ago

Sector Performance

78th percentile

SHW

22.1x

Sector Median

13.7x

Sector Avg

18.7x

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Deep Analysis

The current EV/EBITDA of 22.1x means the company's enterprise value (market cap plus debt minus cash) is 22.1 times its earnings before interest, taxes, depreciation, and amortization — a common valuation measure that shows how expensive the stock is relative to its operating profits.

This ratio sits well above the sector median of 13.9x, placing SHW in the 80th percentile among its peers, indicating it trades at a premium valuation compared to most similar companies. The year-over-year change is not available, but quarter-over-quarter the multiple rose by +3.4% from 21.4x to 22.1x, reflecting a recent upward move in valuation. The combination of an already high valuation level with a rising quarterly trend suggests increased risk, as investors are paying more for each unit of operating profit without a corresponding boost in earnings. This metric directly supports the overall CAUTIOUS verdict, because the stock's elevated and strengthening EV/EBITDA implies limited upside potential and greater vulnerability to negative surprises.

Frequently Asked Questions

What does the EV/EBITDA tell investors about SHW?

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.

How is the EV/EBITDA calculated?

EV/EBITDA is calculated as: Enterprise Value / EBITDA.

Who are SHW's closest peers by EV/EBITDA?

The closest peers by EV/EBITDA include: LSPD (-24.2x), BRZE (-24.5x), EVGO (-25.7x), NIO (-36.8x), SNAP (-38.8x).

The Formula

Enterprise Value / EBITDA

Why It Matters

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.