Sherwin-Williams Co., FCFF 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)
Net noncash charges	678,900)	780,800)	926,400)	705,245)	93,670)
Change in working capital accounts	(298,700)	597,400)	(146,400)	129,709)	18,036)
Net operating cash	2,244,600)	3,408,600)	2,321,300)	1,943,700)	1,883,968)
Interest paid on debt, net of tax¹	280,865)	274,685)	261,486)	306,950)	165,252)
Capital expenditures	(372,000)	(303,800)	(328,900)	(250,957)	(222,767)
Free cash flow to the firm (FCFF)	2,153,465)	3,379,485)	2,253,886)	1,999,693)	1,826,453)

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 »

Download chart

Item	Description	The company
FCFF	Free cash flow to the firm is the cash flow available to the Sherwin-Williams Co. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made.	Sherwin-Williams Co. FCFF increased from 2019 to 2020 but then decreased significantly from 2020 to 2021.

Sherwin-Williams Co., interest paid, net of tax calculation

US$ in thousands

12 months ended:	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Effective Income Tax Rate (EITR)
EITR¹	17.10%	19.40%	22.20%	16.60%	25.10%
Interest Paid, Net of Tax
Interest paid on debt, before tax	338,800)	340,800)	336,100)	368,045)	220,630)
Less: Interest paid on debt, tax²	57,935)	66,115)	74,614)	61,095)	55,378)
Interest paid on debt, net of tax	280,865)	274,685)	261,486)	306,950)	165,252)

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 2021 Calculation
Interest paid on debt, tax = Interest paid on debt × EITR
= 338,800 × 17.10% = 57,935

Download chart

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

Selected Financial Data (US$ in thousands)
Enterprise value (EV)	69,571,993)
Free cash flow to the firm (FCFF)	2,153,465)
Valuation Ratio
EV/FCFF	32.31
Benchmarks
EV/FCFF, Competitors¹
Linde plc	39.97
EV/FCFF, Industry
Materials	23.99

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

¹ Click competitor name to see calculations.

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

Sherwin-Williams Co., historical EV/FCFF 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)
Free cash flow to the firm (FCFF)²	2,153,465)	3,379,485)	2,253,886)	1,999,693)	1,826,453)
Valuation Ratio
EV/FCFF³	36.70	21.39	27.24	24.99	26.14
Benchmarks
EV/FCFF, Competitors⁴
Linde plc	23.60	34.03	44.72	—	—
EV/FCFF, Industry
Materials	18.19	36.43	79.74	—	—

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/FCFF = EV ÷ FCFF
= 79,026,380 ÷ 2,153,465 = 36.70

⁴ Click competitor name to see calculations.

Download chart

Valuation ratio	Description	The company
EV/FCFF	Enterprise value to free cash flow to the firm is whole company valuation indicator.	Sherwin-Williams Co. EV/FCFF ratio decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.

Sherwin-Williams Co. (NYSE:SHW)

Enterprise Value to FCFF (EV/FCFF)

Free Cash Flow to The Firm (FCFF)

Interest Paid, Net of Tax

Enterprise Value to FCFF Ratio, Current

Enterprise Value to FCFF Ratio, Historical