Sherwin-Williams Co., FCFF calculation

US$ in thousands

12 months ended:	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	2,681,400)	2,388,800)	2,020,100)	1,864,400)	2,030,400)
Net noncash charges	535,700)	565,900)	612,300)	678,900)	780,800)
Change in working capital accounts	(63,900)	567,200)	(712,500)	(298,700)	597,400)
Net operating cash	3,153,200)	3,521,900)	1,919,900)	2,244,600)	3,408,600)
Interest paid, net of tax¹	316,161)	319,872)	291,314)	280,865)	274,685)
Capitalized interest, net of tax²	46,309)	23,578)	—)	—)	—)
Capital expenditures	(1,070,000)	(888,400)	(644,500)	(372,000)	(303,800)
Free cash flow to the firm (FCFF)	2,445,671)	2,976,950)	1,566,714)	2,153,465)	3,379,485)

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

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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 2022 to 2023 but then slightly decreased from 2023 to 2024.

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

US$ in thousands

12 months ended:	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Effective Income Tax Rate (EITR)
EITR¹	22.30%	23.20%	21.50%	17.10%	19.40%
Interest Paid, Net of Tax
Interest paid, before tax	406,900)	416,500)	371,100)	338,800)	340,800)
Less: Interest paid, tax²	90,739)	96,628)	79,787)	57,935)	66,115)
Interest paid, net of tax	316,161)	319,872)	291,314)	280,865)	274,685)
Interest Costs Capitalized, Net of Tax
Capitalized interest, before tax	59,600)	30,700)	—)	—)	—)
Less: Capitalized interest, tax³	13,291)	7,122)	—)	—)	—)
Capitalized interest, net of tax	46,309)	23,578)	—)	—)	—)

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

¹ See details »

² 2024 Calculation
Interest paid, tax = Interest paid × EITR
= 406,900 × 22.30% = 90,739

³ 2024 Calculation
Capitalized interest, tax = Capitalized interest × EITR
= 59,600 × 22.30% = 13,291

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

Selected Financial Data (US$ in thousands)
Enterprise value (EV)	100,941,555)
Free cash flow to the firm (FCFF)	2,445,671)
Valuation Ratio
EV/FCFF	41.27
Benchmarks
EV/FCFF, Competitors¹
Linde plc	45.10
EV/FCFF, Sector
Chemicals	43.89
EV/FCFF, Industry
Materials	39.14

Based on: 10-K (reporting date: 2024-12-31).

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, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Selected Financial Data (US$ in thousands)
Enterprise value (EV)¹	97,849,775)	88,778,727)	67,907,905)	79,026,380)	72,301,976)
Free cash flow to the firm (FCFF)²	2,445,671)	2,976,950)	1,566,714)	2,153,465)	3,379,485)
Valuation Ratio
EV/FCFF³	40.01	29.82	43.34	36.70	21.39
Benchmarks
EV/FCFF, Competitors⁴
Linde plc	44.50	39.46	31.63	23.60	34.03
EV/FCFF, Sector
Chemicals	43.08	36.22	34.12	26.76	28.47
EV/FCFF, Industry
Materials	38.72	40.02	34.36	20.85	30.81

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

¹ See details »

² See details »

³ 2024 Calculation
EV/FCFF = EV ÷ FCFF
= 97,849,775 ÷ 2,445,671 = 40.01

⁴ Click competitor name to see calculations.

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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 2022 to 2023 but then increased from 2023 to 2024 not reaching 2022 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