WW Grainger Inc (GWW) fair value: what the stock is really worth
As of Nov 5, 2026: fair value (intrinsic value) of WW Grainger Inc stock $635, price $1,451, that is 56.3% below the price, quality 71 out of 100. Rating: strongly overvalued. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
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Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 5, 2026.
How to read this chart
60‑month range $374.06 – $1,489 · fair‑value band $374.43 – $870.61 · the $1,451 price screens above the $634.60 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 5, 2026.
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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.
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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.
Stock analysis
WW Grainger Inc (GWW) currently trades at $1,451, while our model-based Fair Value estimate is $634.60, 56% below the price, so the stock looks overvalued today.
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Valuation
Bull case: the Growth Earnings group reads highest at a median of $669.70 per share, and 0 of the 26 models we run sit above the $1,451 price.
Bear case: the Dividend Discount group reads lowest at $146.98, and 26 of the 26 models stay below the price. Data coverage for this calculation is high.
Scenario range: $374.43 (bear) to $870.61 (bull), the price of $1,451 sits above it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 71/100 (solid quality), in the Industrials sector.
Healthy Growth: Revenue growth appears healthy and is supported by profitability and cash-flow quality.
WW 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.
Key figures
Market cap $68.7B Large · P/E ratio 37.0 · P/S ratio 3.64 · EPS (TTM) $39.21 · Dividend yield 0.6% · Net margin 9.9% · Return on equity 46.1% · Return on assets (EBIT) 28.8%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 79 out of 100 (medium confidence).
What moves the price
The share trades about 3% below its 52-week high and 59% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Industrials peers we cover trades at −22% fair-value upside, at −56%, GWW screens richer than that median.
Fair Value models
Bear$374.43Fair Value $634.60Bull$870.61
Price $1,451 · Downside -56.3%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2025 figures (about 10 months old). Earnings retained since then ($25.43 per share) are deliberately not added.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. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
In the last 6 months, 3 officers or directors sold shares worth $3.2M and none bought.
SalePaige K RobbinsSr. VP1,457 shares at $1,232$1.8MMay 12, 2026
SaleLaurie R ThomsonVP, Controller313 shares at $1,232$385,519May 12, 2026
SaleJonny M LeRoySVP, Chief Technology Officer854 shares at $1,231$1.1MMay 12, 2026
SaleDeidra C MerriwetherSr. VP & CFO2× since Mar 24, 2026: 3,827 shares, avg. $1,084$4.1MApr 2, 202610b5-1 plan
SaleKrantz Nancy L BerardinelliSr. VP & CLO195 shares at $1,024$199,666Dec 16, 2025
SaleDonald G MacphersonChairman and CEO, Director26,686 shares at $972.70$26.0MDec 5, 202510b5-1 plan
Plus one other filing such as a grant, option exercise or tax withholding. It is not a market purchase or sale.
Sales are often planned (taxes, diversification, 10b5-1 plans). Purchases with their own money are seen as the stronger sign. For information only: not part of the quality score or Fair Value.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.78/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Revenue growth 1 year
+4.5%
Revenue growth 3 years ⓘ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. Per-share growth (which does include buybacks) is in the value-creation card.
+5.6%
Revenue growth 5 years ⓘ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. Per-share growth (which does include buybacks) is in the value-creation card.
+8.7%
Start year 2020 (pandemic). Over 10 years: +6.0% a year
Revenue growth 40 years ⓘ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. Per-share growth (which does include buybacks) is in the value-creation card.
+7.2%
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What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Basis: adjusted.
+15.8%
Earnings growth per share plus dividend.
Earnings per share, growth per year+15.2%
Dividend (yield on the price)0.6%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.18.1% vs 11.9%, picking up
Profit margin 2020 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.9% → 15%
Pace: the 5-year rate starts in 2020 (pandemic)
Growth Forecast
A lot of optimism in the price
The price assumes more growth than the company has delivered so far and more than analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+26.3%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+6.9%
Yearly sales growth analysts expect, extended to five years.
After inflation (USA: IMF forecast 2.4% a year to 2030, 3.1% from 2016 to 2025) that is about +23.3% a year for the price and +4.4% for the forecasts.
News mood ⓘNews mood, the average tone of recent news (98 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation.Hype
Recent news coverage is unusually upbeat, far more positive than stocks are typically covered.
AI conclusion: Grainger's scale and distribution efficiency underpin solid returns, yet limited innovation and human capital signals constrain further quality gains.
Main risk: Agentic AI agents that autonomously search, compare and order supplies could bypass traditional distributor relationships and erode Grainger's customer loyalty and margins in its High-Touch and Endless Assortment segments.
Bull case: Grainger could integrate its data and platforms with emerging AI procurement agents while expanding KeepStock and onsite services to deepen embedded relationships that automated tools cannot easily replicate.
Bear case: If agentic AI and Amazon Business gain traction, Grainger could lose significant volume in transactional and low-touch segments, compressing margins and slowing growth as customers shift to automated or lower-cost alternatives.
Grainger continues to post strong volume growth across its High Touch and Endless Assortment segments while expanding distribution centers and acquiring inventory technology assets to lift efficiency in MRO supply. Macro pressures like higher fuel and oil costs still weigh on sentiment for cyclical industrials. Will these internal improvements protect margins better than external cost headwinds erode them?
Price, fair value, quality and upside side by side.
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Peer Groupⓘ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.Industrial Distribution · 108 stocks
Beats the industry median on 6/15 measures
A mixed picture versus its industry peers.
Valuation
Quality Score71 · Top 25%
Fair Value upside−56.3% · Bottom 25%
Profitability
Return on equity (12 months)46.1% · Top 25%
Return on assets19.0% · Top 25%
Net margin (12 months)9.9% · Top 25%
Operating margin (12 months)16.1% · Top 25%
Growth and dividend
Revenue growth (quarter YoY)10.3% · Above median
Dividend yield (12 months)0.6% · Bottom 25%
Balance sheet
Debt / equity0.57× · Highest 25%
Valuation Multiplesvs Industrial Distribution median · lower = cheaper
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Is WW Grainger Inc (GWW) overvalued or undervalued?
As of Nov 5, 2026, our model estimates a fair value of $634.60 versus a price of $1,451, about 56% lower (overvalued).
What is the fair value of GWW?
Our model-based fair value for WW Grainger Inc is $634.60 (as of Nov 5, 2026), built from audited fundamentals. The current price: $1,451.
What is the quality score of GWW?
WW 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 price target for WW Grainger Inc (GWW)?
Our model-based price target is the fair value of $634.60 (as of Nov 5, 2026) from 26 valuation models. Cautious scenario $374.43, optimistic scenario $870.61. It is a calculation from audited fundamentals, not an analyst target.
What is the WW Grainger Inc stock forecast for 2026?
Our models put fair value at $634.60, about 56% lower versus a price of $1,451 (overvalued). Cautious scenario $374.43, optimistic scenario $870.61. The calculation is refreshed regularly with new filings.
What is the revenue of WW Grainger Inc (GWW)?
WW Grainger Inc reported trailing-twelve-month revenue of about $18.8B (latest available figure, as of Nov 5, 2026).
Does WW Grainger Inc pay a dividend?
WW Grainger Inc currently shows a dividend yield of 0.64% relative to its recent price (as of Nov 5, 2026).
What growth is priced into WW Grainger Inc (GWW)?
For today's price to be fair in a discounted-cash-flow model, WW Grainger Inc would have to grow free cash flow by +26.3 % per year for five years (discount rate 9.1 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +8.8 % per year. As of Nov 5, 2026.
What discount rate (WACC) does the fair value of GWW use?
Our models discount WW Grainger Inc at 9.1 %: a base by market capitalisation (large), damped by beta 0.96, country premium for USA. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For WW Grainger Inc that is +26.3 % per year a year over ten years, using the same discount rate (9.1 %) and the same formula as our fair value.
How much growth has WW Grainger Inc (GWW) delivered so far?
Over the past 5 years revenue at WW Grainger Inc grew +8.8 % a year. The price currently implies +26.3 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of WW Grainger Inc (GWW) growing?
The median revenue growth in the sector is +7.9 % a year. That is the yardstick for the growth priced into WW Grainger Inc (+26.3 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of WW Grainger Inc (GWW)?
The free-cash-flow yield on the price is 1.94 %: that much free cash flow WW Grainger Inc produces per unit of market value. When it exceeds the discount rate of our models (9.1 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of WW Grainger Inc (GWW)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For WW Grainger Inc it is $634.60 per share (as of Nov 5, 2026), against a price of $1,451. It is the blended result of 26 valuation models (cash flow, earnings, asset, dividend).
Is WW Grainger Inc stock overvalued or undervalued in 2026?
As of Nov 5, 2026, GWW trades above its calculated fair value: price $1,451, fair value $634.60, a gap of about −56% (overvalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of GWW?
No. The price is what the market pays today ($1,451); the fair value is what the company's own numbers justify ($634.60). For WW Grainger Inc the two are $816.79 per share apart. That gap is exactly why we show both numbers side by side.
How much is WW Grainger Inc worth?
The market values WW Grainger Inc at about $68.7B (market capitalisation, as of Nov 5, 2026). Per share that is $1,451; our models calculate a fair value of $634.60 per share.
What do the bullish and bearish scenarios say about GWW?
Our models span a range for WW Grainger Inc: cautious scenario $374.43, base $634.60, optimistic $870.61 per share (as of Nov 5, 2026, price $1,451). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of GWW?
WW Grainger Inc trades at a price-to-earnings ratio of 37.0 (as of Nov 5, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $634.60 is built from several models across several years. Excluding one-off items of fiscal year 2025 it is 36.8 (reported for FY2025: 40.5). Median P/E at fiscal year-end, 10 fiscal years (2016 to 2025), earnings ex one-offs: 21.3. Other multiples: PEG 1.9, P/B 16.6, P/S 3.6, EV/EBITDA 21.9.
What is the PEG ratio of GWW?
The PEG ratio of WW Grainger Inc is 1.91 (P/E divided by earnings growth, as of Nov 5, 2026). That is above 1, so the growth is already paid for in the price.
How solid is the balance sheet of WW Grainger Inc (GWW)?
Balance-sheet figures for WW Grainger Inc (as of Nov 5, 2026): return on equity 46.1%, debt of 0.57 per unit of equity. They feed the Quality Score of 71/100, which measures business quality independently of the share price.
How far is GWW from its 52-week high?
WW Grainger Inc trades at $1,451, about 3% below its 52-week high of $1,489 and 59% above the low of $912.82 (as of Nov 5, 2026). Distance from the high says nothing about value: that is what the fair value of $634.60 is for.
Which stocks are comparable to WW Grainger Inc?
From the same area (Industrials) we also value Fastenal Company, Ferguson Enterprises Inc, WESCO International, Inc, Watsco, Inc, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is WW Grainger Inc stock attractive at the current price?
The data as of Nov 5, 2026: price $1,451, calculated fair value $634.60 (−56%), Quality Score 71/100, from 26 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of GWW calculated?
We run WW Grainger Inc through 26 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of $634.60, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 15.5% above its aggregate fair value. WW Grainger Inc itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of WW Grainger Inc (GWW)?
The closing price on Nov 5, 2026 was $1,451. Our model-based fair value is $634.60, about 56% lower (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with WW Grainger Inc right now?
The price sits above even our optimistic bull case ($870.61). The favourable scenario is already priced in. Solid but not exceptional quality (71/100) and above fair value, neither a clear bargain nor a standout compounder. A fairly wide model range ($374.43 to $870.61) leaves room in how you read the outcome.
Where does the earnings growth of WW Grainger Inc (GWW) come from?
Earnings per share at WW Grainger Inc grew +14.3 % a year from 2014 to 2025. Broken into its drivers: revenue per share +9.6 %, EBIT margin +2.2 %, tax rate +2.3 %, residual (interest, one-offs) −0.3 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of WW Grainger Inc
How large is the market capitalisation of WW Grainger Inc (GWW)?
The market capitalisation of WW Grainger Inc is $68.7B. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of WW Grainger Inc (GWW)?
The price-to-sales ratio of WW Grainger Inc is 3.64 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of WW Grainger Inc (GWW)?
Earnings per share at WW Grainger Inc are $39.21 (price ÷ EPS = P/E 37.0). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of WW Grainger Inc (GWW)?
The dividend yield of WW Grainger Inc is 0.6% (payout 21.5%, on adjusted earnings, reported 23.6%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of WW Grainger Inc (GWW)?
The net margin of WW Grainger Inc is 9.9% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of WW Grainger Inc (GWW)?
The return on equity (ROE) of WW Grainger Inc is 46.1% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of WW Grainger Inc (GWW)?
On an EBIT basis the return on assets of WW Grainger Inc is 28.8% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of WW Grainger Inc (GWW)?
The operating margin of WW Grainger Inc is 16.1% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at WW Grainger Inc (GWW)?
Revenue at WW Grainger Inc is growing +10.3% versus a year earlier (3y avg +5.6%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at WW Grainger Inc (GWW)?
Earnings per share at WW Grainger Inc are growing +20.5% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does WW Grainger Inc (GWW) carry?
The net debt of WW Grainger Inc is $2.6B (fiscal year 2025, ≈ 1.9 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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Broad data
Nov 5, 2026