Question 1

What is The Sherwin-Williams Company's WACC?

Accepted Answer

The Sherwin-Williams Company (SHW) has a Weighted Average Cost of Capital (WACC) of 7.68%. This is calculated using a Cost of Equity of 8.29% (via CAPM with a beta of 0.82) and a pre-tax Cost of Debt of 4.21%, with an equity weight of 87.70% in the capital structure.

Question 2

Is The Sherwin-Williams Company's WACC high or low?

Accepted Answer

The Sherwin-Williams Company's WACC of 7.68% is below the typical range of 8-12% for most companies, indicating relatively low cost of capital and lower risk. WACC is used as the discount rate in DCF valuations — a lower WACC results in higher present values of future cash flows.

Question 3

How is The Sherwin-Williams Company's WACC calculated?

Accepted Answer

The Sherwin-Williams Company's WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 8.29% is derived from the CAPM model using a beta of 0.82. The pre-tax Cost of Debt (Rd) is 4.21%. The capital structure is 87.70% equity and 12.30% debt.

The Sherwin-Williams Company (SHW) — WACC 分析

WACC 构成

解读

The Sherwin-Williams Company（SHW）WACC：7.68%

WACC计算器

The Sherwin-Williams Company（SHW） WACC 解读

SHW 公司分析

SHW DCF 估值

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