GWW PE Ratio & Valuation,Is GWW Overvalued

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 24.08 is considered Fairly compared with the five-year average of 21.33. The fair price of WW Grainger Inc (GWW) is between 890.53 to 1101.38 according to relative valuation methord.

Relative Value

Fair Zone

890.53-1101.38

Current Price：1022.54

Fair

24.08

16.57

EV/EBITDA

WW Grainger Inc. (GWW) has a current EV/EBITDA of 16.57. The 5-year average EV/EBITDA is 14.66. The thresholds are as follows: Strongly Undervalued below 10.39, Undervalued between 10.39 and 12.53, Fairly Valued between 16.80 and 12.53, Overvalued between 16.80 and 18.94, and Strongly Overvalued above 18.94. The current Forward EV/EBITDA of 16.57 falls within the Historic Trend Line -Fairly Valued range.

17.98

EV/EBIT

WW Grainger Inc. (GWW) has a current EV/EBIT of 17.98. The 5-year average EV/EBIT is 15.95. The thresholds are as follows: Strongly Undervalued below 11.33, Undervalued between 11.33 and 13.64, Fairly Valued between 18.26 and 13.64, Overvalued between 18.26 and 20.58, and Strongly Overvalued above 20.58. The current Forward EV/EBIT of 17.98 falls within the Historic Trend Line -Fairly Valued range.

2.62

WW Grainger Inc. (GWW) has a current PS of 2.62. The 5-year average PS is 2.18. The thresholds are as follows: Strongly Undervalued below 1.22, Undervalued between 1.22 and 1.70, Fairly Valued between 2.65 and 1.70, Overvalued between 2.65 and 3.13, and Strongly Overvalued above 3.13. The current Forward PS of 2.62 falls within the Historic Trend Line -Fairly Valued range.

22.44

P/OCF

WW Grainger Inc. (GWW) has a current P/OCF of 22.44. The 5-year average P/OCF is 20.23. The thresholds are as follows: Strongly Undervalued below 14.69, Undervalued between 14.69 and 17.46, Fairly Valued between 22.99 and 17.46, Overvalued between 22.99 and 25.76, and Strongly Overvalued above 25.76. The current Forward P/OCF of 22.44 falls within the Historic Trend Line -Fairly Valued range.

29.35

P/FCF

WW Grainger Inc. (GWW) has a current P/FCF of 29.35. The 5-year average P/FCF is 26.95. The thresholds are as follows: Strongly Undervalued below 19.53, Undervalued between 19.53 and 23.24, Fairly Valued between 30.66 and 23.24, Overvalued between 30.66 and 34.37, and Strongly Overvalued above 34.37. The current Forward P/FCF of 29.35 falls within the Historic Trend Line -Fairly Valued range.

WW Grainger Inc (GWW) has a current Price-to-Book (P/B) ratio of 13.68. Compared to its 3-year average P/B ratio of 13.73 , the current P/B ratio is approximately -0.34% higher. Relative to its 5-year average P/B ratio of 13.17, the current P/B ratio is about 3.90% higher. WW Grainger Inc (GWW) has a Forward Free Cash Flow (FCF) yield of approximately 2.53%. Compared to its 3-year average FCF yield of 3.40%, the current FCF yield is approximately -25.44% lower. Relative to its 5-year average FCF yield of 3.44% , the current FCF yield is about -26.30% lower.

13.68

P/B

Median3y

13.73

Median5y

13.17

2.53

FCF Yield

Median3y

3.40

Median5y

3.44

Competitors Valuation Multiple

The average P/S ratio for GWW's competitors is 2.01, providing a benchmark for relative valuation. WW Grainger Inc Corp (GWW) exhibits a P/S ratio of 2.62, which is 30.19% above the industry average. Given its robust revenue growth of 6.13%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of GWW decreased by 2.99% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 21.88 to 28.66.

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

31.02%

21.88 → 28.66

P/E Change

-2.99%

1.05K → 1.02K

Mkt Cap Growth

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Frequently Asked Questions

Is WW Grainger Inc (GWW) currently overvalued or undervalued?

What is WW Grainger Inc (GWW) fair value?

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. The fair price of WW Grainger Inc (GWW) is between 890.53 to 1101.38 according to relative valuation methord.

How does GWW's valuation metrics compare to the industry average?

What is the current P/B ratio for WW Grainger Inc (GWW) as of Dec 15 2025?

As of Dec 15 2025, WW Grainger Inc (GWW) has a P/B ratio of 13.68. This indicates that the market values GWW at 13.68 times its book value.

What is the current FCF Yield for WW Grainger Inc (GWW) as of Dec 15 2025?

As of Dec 15 2025, WW Grainger Inc (GWW) has a FCF Yield of 2.53%. This means that for every dollar of WW Grainger Inc’s market capitalization, the company generates 2.53 cents in free cash flow.

What is the current Forward P/E ratio for WW Grainger Inc (GWW) as of Dec 15 2025?

As of Dec 15 2025, WW Grainger Inc (GWW) has a Forward P/E ratio of 24.08. This means the market is willing to pay $24.08 for every dollar of WW Grainger Inc’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for WW Grainger Inc (GWW) as of Dec 15 2025?

As of Dec 15 2025, WW Grainger Inc (GWW) has a Forward P/S ratio of 2.62. This means the market is valuing GWW at $2.62 for every dollar of expected revenue over the next 12 months.

GWW Valuation