SHWCAUTIOUS

SHW PEG Ratio Analysis

5.40x

Updated 533h ago·SEC filings & market data

Key Takeaway

The PEG ratio combines a stock’s price-to-earnings (P/E) multiple with its expected earnings growth rate — a lower PEG suggests the stock’s price is more justified by future growth.

Sector Performance

91th percentile

SHW

5.40x

Sector Median

0.97x

Sector Avg

2.92x

Prior Period

5.16x(Jun 2026)

↓ Declining
📊

Deep Analysis

The PEG ratio combines a stock’s price-to-earnings (P/E) multiple with its expected earnings growth rate — a lower PEG suggests the stock’s price is more justified by future growth.

At 5.40x, SHW’s PEG is far above the sector median of 0.98x, placing it in the 90th percentile among peers, meaning it is more expensive relative to growth than most comparable companies. The metric lacks a year-over-year comparison (N/A), but it rose 4.7% quarter over quarter from 5.16x to 5.40x, indicating increasing premium. This combination — a very high level coupled with a rising trend — implies elevated valuation risk: investors are paying a lot for each unit of expected earnings growth, and the recent uptick adds further caution. The elevated PEG directly supports the overall CAUTIOUS verdict, as the stock appears richly valued compared to both its sector and its own recent history.

Frequently Asked Questions

What does the PEG Ratio tell investors about SHW?

The PEG ratio adjusts P/E for expected growth. A PEG below 1.0 may signal undervaluation; above 2.0 may suggest the growth story is priced in.

How is the PEG Ratio calculated?

PEG Ratio is calculated as: P/E Ratio / EPS Growth Rate.

Who are SHW's closest peers by PEG Ratio?

The closest peers by PEG Ratio include: EBAY (8.15x), VTR (8.27x), DOV (8.39x), MTD (8.61x), KR (9.25x).

The Formula

P/E Ratio / EPS Growth Rate

Why It Matters

The PEG ratio adjusts P/E for expected growth. A PEG below 1.0 may signal undervaluation; above 2.0 may suggest the growth story is priced in.

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SHW

5.40x

Sector Median

0.97x

Sector Avg

2.92x

How SHW's PEG Ratio compares to sector peers.

Not financial advice. Research tool only. Data may be delayed.