We’ve recently updated our valuation analysis.

Graco Valuation

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

[object Object] Score

0/6

Valuation Score 0/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

GGG key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue5.4x
Enterprise Value/EBITDA18.6x
PEG Ratio3.2x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for GGG vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average20.5x
SWK Stanley Black & Decker
20.2x39.7%US$12.1b
SNA Snap-on
14.3x-0.08%US$12.8b
NDSN Nordson
28.1x10.7%US$13.5b
LECO Lincoln Electric Holdings
19.5x4.3%US$8.5b
GGG Graco
25.9x8.0%US$11.8b

Price-To-Earnings vs Peers: GGG is expensive based on its Price-To-Earnings Ratio (25.9x) compared to the peer average (20.5x).


Price to Earnings Ratio vs Industry

How does GGG's PE Ratio compare vs other companies in the US Machinery Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a11.2%
n/an/an/a

Price-To-Earnings vs Industry: GGG is expensive based on its Price-To-Earnings Ratio (25.9x) compared to the US Machinery industry average (20.6x)


Price to Earnings Ratio vs Fair Ratio

What is GGG'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.

GGG PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio25.9x
Fair PE Ratio18.2x

Price-To-Earnings vs Fair Ratio: GGG is expensive based on its Price-To-Earnings Ratio (25.9x) compared to the estimated Fair Price-To-Earnings Ratio (18.2x).


Share Price vs Fair Value

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

Below Fair Value: GGG ($69.97) is trading above our estimate of fair value ($65.97)

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


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 GGG forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$69.97
US$71.75
+2.5%
6.4%US$80.00US$66.00n/a8
Nov ’23US$70.22
US$71.38
+1.6%
6.0%US$80.00US$66.00n/a8
Oct ’23US$59.95
US$71.25
+18.8%
5.9%US$80.00US$64.00n/a8
Sep ’23US$64.00
US$71.25
+11.3%
5.9%US$80.00US$64.00n/a8
Aug ’23US$67.00
US$71.25
+6.3%
5.9%US$80.00US$64.00n/a8
Jul ’23US$59.50
US$71.63
+20.4%
6.1%US$79.00US$63.00n/a8
Jun ’23US$62.71
US$73.38
+17.0%
5.8%US$80.00US$67.00n/a8
May ’23US$62.02
US$77.38
+24.8%
9.0%US$90.00US$67.00n/a8
Apr ’23US$70.74
US$80.88
+14.3%
5.4%US$90.00US$75.00n/a8
Mar ’23US$70.81
US$81.38
+14.9%
5.8%US$90.00US$75.00n/a8
Feb ’23US$74.30
US$81.50
+9.7%
7.4%US$95.00US$73.00n/a8
Jan ’23US$80.62
US$81.50
+1.1%
8.0%US$95.00US$73.00n/a8
Dec ’22US$71.68
US$80.88
+12.8%
6.6%US$90.00US$73.00US$69.978
Nov ’22US$76.43
US$80.88
+5.8%
6.6%US$90.00US$73.00US$70.228
Oct ’22US$70.30
US$81.38
+15.8%
7.8%US$90.00US$72.00US$59.958
Sep ’22US$78.41
US$82.25
+4.9%
7.2%US$90.00US$72.00US$64.008
Aug ’22US$78.08
US$82.25
+5.3%
7.2%US$90.00US$72.00US$67.008
Jul ’22US$75.89
US$81.38
+7.2%
8.2%US$90.00US$70.00US$59.508
Jun ’22US$75.97
US$81.38
+7.1%
8.2%US$90.00US$70.00US$62.718
May ’22US$76.80
US$81.38
+6.0%
8.2%US$90.00US$70.00US$62.028
Apr ’22US$72.90
US$76.50
+4.9%
10.0%US$90.00US$64.00US$70.748
Mar ’22US$70.96
US$77.29
+8.9%
11.0%US$90.00US$64.00US$70.817
Feb ’22US$69.37
US$77.29
+11.4%
11.0%US$90.00US$64.00US$74.307
Jan ’22US$72.35
US$67.00
-7.4%
11.3%US$78.00US$57.00US$80.627
Dec ’21US$67.47
US$67.00
-0.7%
11.3%US$78.00US$57.00US$71.687

Analyst Forecast: Target price is less than 20% higher than the current share price.


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