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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$1,283
Fair Value$625.61
Upside-51.2%
Quality72/100
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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 $367.71 – $948.52 Share as image

Fair value as of: Jul 12, 2026

From 26 valuation models · updated 26 days ago

Fair value updated Jul 12, 2026, revised from $624.80 to $625.61 (+0.1%) since Jun 24, 2026. Share price −5.4% over the past month.

A solid business, but screening 51% overvalued on our models.

What matters now

  • A high-quality business (quality 72/100), 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.
  • A fairly wide model range ($367.71 to $948.52) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

$1,402 $374.79 Fair Value $625.61 May 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 12, 2026.

How to read this chart

60‑month range $374.79 – $1,402 · fair‑value band $367.71 – $948.52 · the $1,283 price screens above the $625.61 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 12, 2026.

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Analysis

W.W. Grainger, Inc (GWW) currently trades at $1,283, while our model-based Fair Value estimate is $625.61, implying the stock looks roughly 51.2% overvalued today. We read business quality at 72/100 (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 Jul 12, 2026

Our scenario range runs from $367.71 (bear case) to $948.52 (bull case); at $1,283, 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 about 1% below its 52-week high and 42% above its 52-week low, currently above its 200-day average. For context, the median of 10 Industrials peers we cover trades at -35% fair-value upside, at -51%, 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 BearBaseBull Evidence
Highest evidence
Growth DCF $286.75 $442.01 $663.78 80
Residual Income $279.47 $426.19 $5,446 76
Rev-Margin DCF $395.09 $682.80 $1,010 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 $395.09 $685.83 $1,059 39
5Y EBITDA Exit $425.43 $742.38 $1,112 41
5Y P/E Exit $387.16 $671.05 $968.21 38
10Y Revenue Exit $334.88 $590.45 $936.37 36
10Y EBITDA Exit $369.93 $629.65 $976.84 37
10Y P/E Exit $345.57 $580.21 $867.34 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 $542.01 $722.68 $903.35 63
P/S Multiple $460.71 $614.28 $767.85 58
P/B Multiple $197.34 $263.13 $328.91 55
EV/EBIT $731.82 $988.31 $1,245 53
EV/EBITDA $570.54 $773.26 $975.98 54
EV/Revenue $481.03 $703.32 $925.61 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 $395.09 $682.80 $1,010 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 $447.71 $639.59 $831.46 68

Widest divergence: Multiples ($703.32) versus Asset-Based ($58.76). Highest evidence: Growth DCF (80).

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 37.0
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 Jul 12, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 72/100

Of which business quality 68 · Market factors (momentum, volatility) 71

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 69
Calm price path (market factor)
Momentum 70
Price trend over the last 3–12 months (market factor)
52W Momentum 77
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)
+5.6%
Avg. growth/yr (5Y)
+8.7%
Avg. growth/yr (40Y)
+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

GWW screens 51% 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 · 102 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 72 · Top 25%
Fair Value upside −51% · 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) 37.0× · 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 19
FUTURE 51 · sector 19
PAST 100 · sector 37
HEALTH 72 · sector 90
DIVIDEND 13 · sector 29

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.

Similar stocks

10 more Industrial Distribution stocks, each showing price versus our Fair Value estimate (as of Jul 12, 2026).

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WESCO International, Inc WCC $326.71 $213.01 -35%
Watsco, Inc WSO $385.16 $268.10 -30%
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Core & Main, Inc CNM $44.66 $49.47 +11%
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Frequently asked questions

Is W.W. Grainger, Inc (GWW) overvalued or undervalued?
As of Jul 12, 2026, our model estimates a fair value of $625.61 versus a price of $1,283, about −51% (overvalued).
What is the fair value of GWW?
Our model-based fair value for W.W. Grainger, Inc is $625.61 (as of Jul 12, 2026), built from audited fundamentals. The current price is $1,283.
What is the quality score of GWW?
W.W. Grainger, Inc has a Quality Score of 72/100. It combines two groups: business quality (profitability, growth, cash flow, balance-sheet strength) and market factors (price momentum, distance to the 52-week high, volatility). Both subtotals 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 Jul 12, 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 Jul 12, 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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