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W.W. Grainger, Inc (GWW) Fair Value & Analysis

Industrials · US · Market cap $65.0B

WW W.W. Grainger, Inc logo W.W. Grainger, Inc GWW · US
Price$1,321
Fair Value$613.88
Upside-53.5%
Quality71/100
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Healthy Growth
Thin margins · 9.7% net margin
Moderate debt · generates free cash flow
0.66% dividend yield
Mixed vs. peers (6/15)
Wide moat 80/100
Evidence: High Range $361.27 – $948.52 Share as image

Fair value as of: Aug 13, 2026

From 26 valuation models · updated yesterday

Fair value updated Aug 13, 2026, revised from $625.61 to $613.88 (−1.9%) since Jul 12, 2026. Share price −3.6% over the past month.

A solid business, but screening 54% overvalued on our models.

What matters now

  • A high-quality business (quality 71/100), yet the market already pays well above fair value. Quality at a full price, with little margin of safety.
  • The price sits above even our optimistic bull case ($948.52). The favourable scenario is already priced in.
  • The model range is unusually wide ($361.27 to $948.52). The outcome hinges heavily on assumptions, so read the point estimate with caution.
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Price vs Fair Value (5 years)

$1,402 $374.79 Fair Value $613.88 May 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

60‑month range $374.79 – $1,402 · fair‑value band $361.27 – $948.52 · the $1,321 price screens above the $613.88 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 13, 2026.

Full chart & analysis →

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Analysis

W.W. Grainger, Inc (GWW) currently trades at $1,321, while our model-based Fair Value estimate is $613.88, implying the stock looks roughly 53.5% overvalued today. The Quality Score stands at 71/100 (solid quality), in the Industrials sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, W.W. Grainger, Inc generated revenue of $18.4B at a net margin of 9.7%. Revenue grew 10.1% year over year. It earns a return on equity of 46.1%. Net debt stands at $2.6B. Fundamentals as of Aug 13, 2026

Our scenario range runs from $361.27 (bear case) to $948.52 (bull case); at $1,321, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades near its 52-week high and 46% above its 52-week low, currently above its 200-day average. For context, the median of 10 Industrials peers we cover trades at -39% fair-value upside, at -54%, GWW screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Growth DCF $286.75 $442.01 $663.78 80
Residual Income $279.47 $426.19 $5,446 76
Rev-Margin DCF $370.40 $637.47 $941.64 74
All 26 models by family
DCF Models
FCF DCF $280.98 $455.79 $721.31 38
Owner Earnings $267.81 $435.40 $689.95 31
5Y Revenue Exit $370.40 $639.80 $985.05 39
5Y EBITDA Exit $425.43 $742.38 $1,112 41
5Y P/E Exit $402.83 $700.26 $1,012 38
10Y Revenue Exit $320.37 $558.56 $880.16 36
10Y EBITDA Exit $369.93 $629.65 $976.84 37
10Y P/E Exit $355.55 $600.46 $900.48 35
Earnings-Based
Graham-Dodd $245.71 $751.14 $997.18 54
Lynch FV $161.37 $230.54 $299.70 50
PEG = 1.0 $161.37 $230.54 $299.70 46
EPV $379.72 $449.28 $510.14 59
Dividend Discount
Gordon GGM $90.82 $188.83 $299.57 70
DDM Multi-Stage $90.82 $149.00 $198.19 61
Multiples
P/E Multiple $569.11 $758.81 $948.52 63
P/S Multiple $460.71 $614.28 $767.85 58
P/B Multiple $296.02 $394.69 $493.36 55
EV/EBIT $689.07 $931.31 $1,174 53
EV/EBITDA $570.54 $773.26 $975.98 54
EV/Revenue $441.19 $646.40 $851.61 43
Asset-Based
NCAV (Graham) $43.85 $58.76 $87.71 50
Growth DCF
Growth DCF $286.75 $442.01 $663.78 80
Rev-Margin DCF $370.40 $637.47 $941.64 74
Economic Profit
Residual Income $279.47 $426.19 $5,446 76
ROIC Compounder $404.20 $508.66 $622.27 72
Growth Earnings
Growth-Adj P/E $467.68 $668.11 $868.54 68

Widest divergence: Growth Earnings ($668.11) versus Asset-Based ($58.76). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) $18.4B
Revenue growth (YoY) +10.1%
Net margin 9.7%
Return on equity 46.1%
Free cash flow $1.3B FY2025
P/E ratio 35.6
More key figures
Operating margin 16.7%
EPS (TTM) $37.15
Dividend yield 0.7%
EPS growth (YoY) +18.2%
Net debt $2.6B FY2025

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 71/100

Of which business quality 68 · Market factors (momentum, volatility) 69

Profitability 89
Margins and returns on capital today
Quality Growth 44
Are margins and returns improving?
Cashflow 46
Earnings quality: real cash, not paper profit
Fin. Strength 72
Balance sheet, leverage, solvency risk
Investment 55
Disciplined investing over empire-building
Low Volatility 70
Calm price path (market factor)
Momentum 62
Price trend over the last 3–12 months (market factor)
52W Momentum 81
Distance to the 52-week high (market factor)
Net Issuance 100
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

W.W. Grainger, Inc., together with its subsidiaries, distributes maintenance, repair, and operating products and services primarily in North America, Japan, and the United Kingdom. The company operates through two segments, High-Touch Solutions North America and Endless Assortment.

Full company description

W.W. Grainger, Inc., together with its subsidiaries, distributes maintenance, repair, and operating products and services primarily in North America, Japan, and the United Kingdom. The company operates through two segments, High-Touch Solutions North America and Endless Assortment. It provides safety, security, material handling and storage equipment, pumps and plumbing equipment, cleaning and maintenance, and metalworking and hand tools. The company also offers technical support and inventory management services. It serves smaller businesses to large corporations, government entities, and other institutions, as well as commercial, healthcare, and manufacturing industries through sales and service representatives, and electronic and ecommerce channels. W.W. Grainger, Inc. was founded in 1927 and is headquartered in Lake Forest, Illinois.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

W.W. Grainger, Inc reported revenue of $17.9B in FY2025 versus $13.0B in FY2021, a compound +8.3%/yr. Reported net income was $1.7B in FY2025, compounding +13.1%/yr from FY2021.

Growth Quality 78/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
$17.9B
Latest YoY
+4.5%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+5.6%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+8.7%
Avg. growth/yr (40Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+7.2%
Revenue +8.3%/yr
FY21 $13.0B
FY22 $15.2B
FY23 $16.5B
FY24 $17.2B
FY25 $17.9B
Net income +13.1%/yr
FY21 $1.0B
FY22 $1.5B
FY23 $1.8B
FY24 $1.9B
FY25 $1.7B
Character of growth · EPS growth decomposed (2014-2025) +14.3 % p.a.
Revenue per share +9.6 pp

of which total revenue +6.2 pp · buybacks/dilution +3.4 pp

EBIT margin +2.2 pp
Tax rate +2.3 pp
Residual (interest, one-offs) +0.2 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

GWW screens 54% overvalued. Compare with Fastenal Company →

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Cite: Fair Value Calculator (2026). "W.W. Grainger, Inc Fair Value". https://www.fairvalue-calculator.com/stock/GWW

Recent news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

Peer Group

Industrial Distribution · 107 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 71 · Top 25%
Fair Value upside −54% · Bottom 25%
Return on equity (TTM) 46% · Top 25%
Return on assets 20% · Top 25%
Net margin (TTM) 10% · Top 25%
Operating margin (TTM) 17% · Top 25%
Revenue growth 10% · Above median
Dividend yield (TTM) 0.7% · Bottom 25%
Debt / equity 0.57× · Higher than 75% of peers

Valuation Multiples vs Industrial Distribution median · lower = cheaper

P/E (TTM) 35.6× · Pricier than 75% of peers
P/B 15.69× · Pricier than 75% of peers
P/S (TTM) 3.53× · Pricier than 75% of peers
P/FCF 48.8× · Pricier than 75% of peers
EV/EBITDA 21.6× · Pricier than 75% of peers
PEG 2.15× · Pricier than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 0 · sector 22
FUTURE 51 · sector 19
PAST 100 · sector 35
HEALTH 72 · sector 91
DIVIDEND 13 · sector 31

VALUE 0: the price sits above our fair-value range.

Insider activity: 46/100

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

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Frequently asked questions

Is W.W. Grainger, Inc (GWW) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of $613.88 versus a price of $1,321, about −54% (overvalued).
What is the fair value of GWW?
Our model-based fair value for W.W. Grainger, Inc is $613.88 (as of Aug 13, 2026), built from audited fundamentals. The current price is $1,321.
What is the quality score of GWW?
W.W. Grainger, Inc has a Quality Score of 71/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of W.W. Grainger, Inc (GWW)?
W.W. Grainger, Inc reported trailing-twelve-month revenue of about $18.4B (latest available figure, as of Aug 13, 2026).
What is the net profit margin of GWW?
The net profit margin of W.W. Grainger, Inc is about 9.7%, meaning it keeps roughly 9.7% of revenue as net income. Based on the latest reported figures.
Does W.W. Grainger, Inc pay a dividend?
W.W. Grainger, Inc currently shows a dividend yield of about 0.70% relative to its recent price (as of Aug 13, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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