W.W. Grainger, Inc.

DB:GWW Stock Report

Market Cap: €56.1b

W.W. Grainger Valuation

Is GWW undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of GWW when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: GWW (€1151.5) is trading above our estimate of fair value (€496.4)

Significantly Below Fair Value: GWW is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for GWW?

Key metric: As GWW is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for GWW. This is calculated by dividing GWW's market cap by their current earnings.
What is GWW's PE Ratio?
PE Ratio32.1x
EarningsUS$1.83b
Market CapUS$59.28b

Price to Earnings Ratio vs Peers

How does GWW's PE Ratio compare to its peers?

The above table shows the PE ratio for GWW vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average23.9x
BNR Brenntag
16.5x15.6%€9.0b
ENR Siemens Energy
32.1x23.4%€38.0b
DTG Daimler Truck Holding
8.1x11.9%€27.3b
RHM Rheinmetall
39x29.0%€26.7b
GWW W.W. Grainger
32.1x8.2%€59.3b

Price-To-Earnings vs Peers: GWW is expensive based on its Price-To-Earnings Ratio (32.1x) compared to the peer average (23.9x).

Price to Earnings Ratio vs Industry

How does GWW's PE Ratio compare vs other companies in the European Trade Distributors Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
GWW 32.1xIndustry Avg. 14.4xNo. of Companies11PE01020304050+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: GWW is expensive based on its Price-To-Earnings Ratio (32.1x) compared to the European Trade Distributors industry average (14.4x).

Price to Earnings Ratio vs Fair Ratio

What is GWW's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

GWW PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio32.1x
Fair PE Ratio20.9x

Price-To-Earnings vs Fair Ratio: GWW is expensive based on its Price-To-Earnings Ratio (32.1x) compared to the estimated Fair Price-To-Earnings Ratio (20.9x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst GWW forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€1,151.50
€1,012.85
-12.0%
15.6%€1,208.06€622.91n/a13
Nov ’25€1,018.00
€933.34
-8.3%
14.1%€1,135.04€609.05n/a12
Oct ’25€930.40
€872.97
-6.2%
15.5%€1,119.75€528.52n/a12
Sep ’25€868.80
€892.84
+2.8%
15.9%€1,136.75€536.55n/a11
Aug ’25€898.40
€906.11
+0.9%
16.7%€1,158.38€528.22n/a11
Jul ’25€835.60
€892.82
+6.8%
16.6%€1,149.50€524.17n/a11
Jun ’25€834.00
€907.77
+8.8%
16.1%€1,157.38€527.76n/a11
May ’25€869.00
€913.90
+5.2%
15.6%€1,169.13€533.12n/a12
Apr ’25€939.60
€862.30
-8.2%
14.0%€1,033.31€505.18n/a12
Mar ’25€898.80
€844.51
-6.0%
14.8%€994.38€508.75n/a12
Feb ’25€826.20
€743.11
-10.1%
13.8%€882.00€481.26n/a13
Jan ’25€744.00
€712.78
-4.2%
11.2%€813.80€483.08n/a12
Dec ’24€717.00
€717.26
+0.04%
10.8%€819.85€486.67n/a13
Nov ’24€685.80
€733.78
+7.0%
10.8%€829.05€492.13€1,018.0012
Oct ’24€657.00
€703.54
+7.1%
13.2%€814.40€440.01€930.4013
Sep ’24€654.80
€703.54
+7.4%
13.2%€814.40€440.01€868.8013
Aug ’24€668.40
€697.14
+4.3%
13.4%€799.16€431.78€898.4013
Jul ’24€716.60
€658.24
-8.1%
13.6%€758.37€431.14€835.6013
Jun ’24€604.40
€658.24
+8.9%
13.6%€758.37€431.14€834.0013
May ’24€632.00
€658.24
+4.2%
13.6%€758.37€431.14€869.0013
Apr ’24€625.40
€654.94
+4.7%
13.7%€756.40€444.39€939.6013
Mar ’24€627.60
€654.21
+4.2%
14.3%€758.32€445.51€898.8012
Feb ’24€538.00
€546.88
+1.7%
14.6%€638.71€403.44€826.2012
Jan ’24€529.00
€575.13
+8.7%
14.6%€673.11€425.17€744.0012
Dec ’23€573.20
€575.13
+0.3%
14.6%€673.11€425.17€717.0012
Nov ’23€588.60
€588.98
+0.07%
15.5%€678.31€444.44€685.8013

Analyst Forecast: Target price is lower than the current share price.

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