Enterprise Value to EBITDA (EV/EBITDA)

Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
EV to EBITDA Ratio, Current
EV to EBITDA Ratio, Historical

Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)

Sherwin-Williams Co., EBITDA calculation

US$ in thousands

12 months ended:	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Net income	1,864,400)	2,030,400)	1,541,300)	1,108,746)	1,772,262)
Less: Net loss from discontinued operations	—)	—)	—)	—)	(41,540)
Add: Income tax expense	384,200)	488,800)	440,500)	250,904)	(285,583)
Earnings before tax (EBT)	2,248,600)	2,519,200)	1,981,800)	1,359,650)	1,528,219)
Add: Interest expense	334,700)	340,400)	349,300)	366,734)	263,471)
Earnings before interest and tax (EBIT)	2,583,300)	2,859,600)	2,331,100)	1,726,384)	1,791,690)
Add: Depreciation	263,100)	268,000)	262,100)	278,169)	284,997)
Add: Amortization of intangible assets	309,500)	313,400)	312,800)	318,112)	206,764)
Earnings before interest, tax, depreciation and amortization (EBITDA)	3,155,900)	3,441,000)	2,906,000)	2,322,665)	2,283,451)

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

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Item	Description	The company
EBITDA	To calculate EBITDA analysts start with net earnings. To that earnings number, interest, taxes, depreciation, and amortization are added. EBITDA as a pre-interest number is a flow to all providers of capital.	Sherwin-Williams Co. EBITDA increased from 2019 to 2020 but then slightly decreased from 2020 to 2021 not reaching 2019 level.

Enterprise Value to EBITDA Ratio, Current

Sherwin-Williams Co., current EV/EBITDA calculation, comparison to benchmarks

Selected Financial Data (US$ in thousands)
Enterprise value (EV)	69,571,993)
Earnings before interest, tax, depreciation and amortization (EBITDA)	3,155,900)
Valuation Ratio
EV/EBITDA	22.05
Benchmarks
EV/EBITDA, Competitors¹
Linde plc	18.65
EV/EBITDA, Industry
Materials	14.85

Based on: 10-K (reporting date: 2021-12-31).

¹ Click competitor name to see calculations.

If the company EV/EBITDA is lower then the EV/EBITDA of benchmark then company is relatively undervalued.
Otherwise, if the company EV/EBITDA is higher then the EV/EBITDA of benchmark then company is relatively overvalued.

Enterprise Value to EBITDA Ratio, Historical

Sherwin-Williams Co., historical EV/EBITDA calculation, comparison to benchmarks

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Selected Financial Data (US$ in thousands)
Enterprise value (EV)¹	79,026,380)	72,301,976)	61,400,310)	49,973,986)	47,743,830)
Earnings before interest, tax, depreciation and amortization (EBITDA)²	3,155,900)	3,441,000)	2,906,000)	2,322,665)	2,283,451)
Valuation Ratio
EV/EBITDA³	25.04	21.01	21.13	21.52	20.91
Benchmarks
EV/EBITDA, Competitors⁴
Linde plc	16.23	17.70	15.17	—	—
EV/EBITDA, Industry
Materials	11.65	17.12	14.98	—	—

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

¹ See details »

² See details »

³ 2021 Calculation
EV/EBITDA = EV ÷ EBITDA
= 79,026,380 ÷ 3,155,900 = 25.04

⁴ Click competitor name to see calculations.

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Valuation ratio	Description	The company
EV/EBITDA	Enterprise value to earnings before interest, tax, depreciation and amortization is a valuation indicator for the overall company rather than common stock.	Sherwin-Williams Co. EV/EBITDA ratio decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.

Sherwin-Williams Co. (NYSE:SHW)

Enterprise Value to EBITDA (EV/EBITDA)

Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)

Enterprise Value to EBITDA Ratio, Current

Enterprise Value to EBITDA Ratio, Historical