Is The Sherwin-Williams Co. overvalued or undervalued?

As of 3 October 2025, the valuation grade for The Sherwin-Williams Co. has moved from very expensive to expensive, indicating a shift towards a less favorable valuation outlook. The company appears to be overvalued based on several key metrics, including a P/E ratio of 37, a Price to Book Value of 24.05, and an EV to EBITDA ratio of 24.72. In comparison, its peer, which has a P/E of 38.53 and an EV to EBITDA of 26.02, suggests that while Sherwin-Williams is slightly lower, it still remains in the expensive range relative to its industry.
Additionally, the company has shown mixed performance against the S&P 500, with a year-to-date return of 1.96% compared to the index's 14.18%, and a one-year return of -7.10% versus 17.82% for the S&P 500. This underperformance reinforces the notion that the stock may be overvalued at its current price of 346.60.