W.W. Grainger, Inc.

NYSE:GWW Stock Report

Market Cap: US$50.1b

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 ($1085.04) is trading above our estimate of fair value ($466.29)

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?

Other financial metrics that can be useful for relative valuation.

GWW 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/Revenue3.1x
Enterprise Value/EBITDA18.6x
PEG Ratio3.6x

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 Average30.1x
URI United Rentals
21.2x8.6%US$53.1b
FAST Fastenal
38.1x8.2%US$40.1b
FERG Ferguson Enterprises
23x8.7%US$39.8b
WSO Watsco
38.1x11.5%US$18.3b
GWW W.W. Grainger
29.1x8.1%US$50.1b

Price-To-Earnings vs Peers: GWW is expensive based on its Price-To-Earnings Ratio (29.1x) compared to the peer average (28.9x).

Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a8.6%
 n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a8.6%
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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 (14.5x).

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 Ratio25.6x

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 (25.7x).

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$1,085.04
US$978.09
-9.9%
15.3%US$1,250.00US$590.00n/a13
Oct ’25US$1,039.90
US$976.26
-6.1%
15.6%US$1,250.00US$590.00n/a12
Sep ’25US$984.92
US$983.70
-0.1%
16.0%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$520.00n/a13
Nov ’24US$742.10
US$775.33
+4.5%
10.8%US$876.00US$520.00n/a12
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
Nov ’23US$592.70
US$581.77
-1.8%
15.5%US$670.00US$439.00US$742.1013
Oct ’23US$489.19
US$561.08
+14.7%
15.2%US$650.00US$422.00US$691.8413

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

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