GWW Valuation

WW Grainger Inc

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979.000

+22.76(2.380%)1D

GWW Relative Valuation

GWW's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, GWW is overvalued; if below, it's undervalued.

Historical Valuation

WW Grainger Inc (GWW) is now in the Fair zone, suggesting that its current forward PE ratio of 22.96 is considered Fairly compared with the five-year average of 21.34. The fair price of WW Grainger Inc (GWW) is between 881.27 to 1093.62 according to relative valuation methord.

Relative Value

Fair Zone

881.27-1093.62

Current Price：979.00

Fair

22.96

Trailing

Forward

15.73

EV/EBITDA

WW Grainger Inc. (GWW) has a current EV/EBITDA of 15.73. The 5-year average EV/EBITDA is 14.63. The thresholds are as follows: Strongly Undervalued below 10.34, Undervalued between 10.34 and 12.48, Fairly Valued between 16.78 and 12.48, Overvalued between 16.78 and 18.92, and Strongly Overvalued above 18.92. The current Forward EV/EBITDA of 15.73 falls within the Historic Trend Line -Fairly Valued range.

17.21

EV/EBIT

WW Grainger Inc. (GWW) has a current EV/EBIT of 17.21. The 5-year average EV/EBIT is 15.93. The thresholds are as follows: Strongly Undervalued below 11.29, Undervalued between 11.29 and 13.61, Fairly Valued between 18.25 and 13.61, Overvalued between 18.25 and 20.57, and Strongly Overvalued above 20.57. The current Forward EV/EBIT of 17.21 falls within the Historic Trend Line -Fairly Valued range.

979.00

WW Grainger Inc. (GWW) has a current PS of 979.00. The 5-year average PS is 4.50. The thresholds are as follows: Strongly Undervalued below -90.50, Undervalued between -90.50 and -43.00, Fairly Valued between 52.00 and -43.00, Overvalued between 52.00 and 99.50, and Strongly Overvalued above 99.50. The current Forward PS of 979.00 falls within the Strongly Overvalued range.

21.19

P/OCF

WW Grainger Inc. (GWW) has a current P/OCF of 21.19. The 5-year average P/OCF is 20.20. The thresholds are as follows: Strongly Undervalued below 14.63, Undervalued between 14.63 and 17.42, Fairly Valued between 22.98 and 17.42, Overvalued between 22.98 and 25.77, and Strongly Overvalued above 25.77. The current Forward P/OCF of 21.19 falls within the Historic Trend Line -Fairly Valued range.

28.01

P/FCF

WW Grainger Inc. (GWW) has a current P/FCF of 28.01. The 5-year average P/FCF is 26.93. The thresholds are as follows: Strongly Undervalued below 19.47, Undervalued between 19.47 and 23.20, Fairly Valued between 30.66 and 23.20, Overvalued between 30.66 and 34.40, and Strongly Overvalued above 34.40. The current Forward P/FCF of 28.01 falls within the Historic Trend Line -Fairly Valued range.

WW Grainger Inc (GWW) has a current Price-to-Book (P/B) ratio of 13.02. Compared to its 3-year average P/B ratio of 13.73 , the current P/B ratio is approximately -5.19% higher. Relative to its 5-year average P/B ratio of 13.10, the current P/B ratio is about -0.62% higher. WW Grainger Inc (GWW) has a Forward Free Cash Flow (FCF) yield of approximately 2.63%. Compared to its 3-year average FCF yield of 3.42%, the current FCF yield is approximately -22.97% lower. Relative to its 5-year average FCF yield of 3.47% , the current FCF yield is about -24.15% lower.

13.02

P/B

Median3y

13.73

Median5y

13.10

2.63

FCF Yield

Median3y

3.42

Median5y

3.47

Competitors Valuation Multiple

The average P/S ratio for GWW's competitors is 278.86, providing a benchmark for relative valuation. WW Grainger Inc Corp (GWW) exhibits a P/S ratio of 979.00, which is 251.07% above the industry average. Given its robust revenue growth of 6.13%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Ferguson Enterprises Inc

Wesco International Inc

259.53

12.93%

12.63B

Performance Decomposition

Market capitalization of GWW decreased by 18.78% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 23.83 to 27.46.

The secondary factor is the Revenue Growth, contributed 6.13%to the performance.

Overall, the performance of GWW in the past 1 year is driven by P/E Change. Which is more unsustainable.

6.13%

4.39B → 4.66B

Revenue Growth

-40.14%

11.51 → 6.89

Margin Expansion

15.23%

23.83 → 27.46

P/E Change

-18.78%