W.W. Grainger, Inc.

NYSE:GWW Stock Report

Market Cap: US$52.7b

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 ($1092.96) is trading above our estimate of fair value ($491.01)

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 Ratio29.1x
EarningsUS$1.83b
Market CapUS$52.67b

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 Average28.6x
FAST Fastenal
37.1x7.8%US$42.4b
URI United Rentals
18.5x8.9%US$46.7b
FERG Ferguson Enterprises
21.1x9.7%US$34.9b
WSO Watsco
37.5x11.5%US$18.6b
GWW W.W. Grainger
29.1x8.0%US$52.7b

Price-To-Earnings vs Peers: GWW is expensive based on its Price-To-Earnings Ratio (29.1x) compared to the peer average (27.7x).

Price to Earnings Ratio vs Industry

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

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
BYU BAIYU Holdings
0.8xn/aUS$8.94m
No more companies available in this PE range
GWW 29.1xIndustry Avg. 16.7xNo. of Companies6PE01020304050+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: GWW is expensive based on its Price-To-Earnings Ratio (29.1x) compared to the US Trade Distributors industry average (16.7x).

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 Ratio29.1x
Fair PE Ratio25.3x

Price-To-Earnings vs Fair Ratio: GWW is expensive based on its Price-To-Earnings Ratio (29.1x) compared to the estimated Fair Price-To-Earnings Ratio (25.3x).

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
CurrentUS$1,092.96
US$1,082.08
-1.0%
15.1%US$1,280.00US$660.00n/a14
Dec ’25US$1,205.34
US$1,075.86
-10.7%
15.6%US$1,280.00US$660.00n/a13
Nov ’25US$1,105.07
US$1,011.43
-8.5%
14.1%US$1,230.00US$660.00n/a12
Oct ’25US$1,039.90
US$974.51
-6.3%
15.5%US$1,250.00US$590.00n/a12
Sep ’25US$984.92
US$981.79
-0.3%
15.9%US$1,250.00US$590.00n/a11
Aug ’25US$942.36
US$977.79
+3.8%
16.7%US$1,250.00US$570.00n/a11
Jul ’25US$896.19
US$970.88
+8.3%
16.6%US$1,250.00US$570.00n/a11
Jun ’25US$921.46
US$980.42
+6.4%
16.1%US$1,250.00US$570.00n/a11
May ’25US$920.30
US$977.12
+6.2%
15.6%US$1,250.00US$570.00n/a12
Apr ’25US$1,009.64
US$938.82
-7.0%
14.0%US$1,125.00US$550.00n/a12
Mar ’25US$980.90
US$912.98
-6.9%
14.8%US$1,075.00US$550.00n/a12
Feb ’25US$922.64
US$802.92
-13.0%
13.8%US$953.00US$520.00n/a13
Jan ’25US$828.69
US$767.25
-7.4%
11.2%US$876.00US$520.00n/a12
Dec ’24US$803.58
US$766.38
-4.6%
10.8%US$876.00US$520.00US$1,205.3413
Nov ’24US$742.10
US$775.33
+4.5%
10.8%US$876.00US$520.00US$1,105.0712
Oct ’24US$691.84
US$761.08
+10.0%
13.2%US$881.00US$476.00US$1,039.9013
Sep ’24US$710.78
US$761.08
+7.1%
13.2%US$881.00US$476.00US$984.9213
Aug ’24US$725.32
US$768.54
+6.0%
13.4%US$881.00US$476.00US$942.3613
Jul ’24US$788.59
US$722.15
-8.4%
13.6%US$832.00US$473.00US$896.1913
Jun ’24US$655.31
US$722.15
+10.2%
13.6%US$832.00US$473.00US$921.4613
May ’24US$695.96
US$722.15
+3.8%
13.6%US$832.00US$473.00US$920.3013
Apr ’24US$688.81
US$692.69
+0.6%
13.7%US$800.00US$470.00US$1,009.6413
Mar ’24US$671.01
US$690.17
+2.9%
14.3%US$800.00US$470.00US$980.9012
Feb ’24US$598.05
US$595.08
-0.5%
14.6%US$695.00US$439.00US$922.6412
Jan ’24US$556.25
US$593.83
+6.8%
14.6%US$695.00US$439.00US$828.6912
Dec ’23US$603.18
US$593.83
-1.5%
14.6%US$695.00US$439.00US$803.5812

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

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/20 22:45
End of Day Share Price 2024/12/20 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

W.W. Grainger, Inc. is covered by 45 analysts. 21 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Fabrizio SpagnaAxia Financial Research
David MantheyBaird
Ishan MajumdarBaptista Research