Is Fastenal Co. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Fastenal Co. has moved from expensive to fair. Based on the current metrics, the company appears to be fairly valued. Key ratios include a P/E ratio of 42, a Price to Book Value of 13.08, and an EV to EBITDA of 28.58. In comparison, peers such as W.W. Grainger, Inc. have a P/E of 52.61 and Ferguson Plc has a more favorable EV to EBITDA of 17.28, indicating that Fastenal is positioned competitively within its industry.
Despite recent underperformance, with a 1-year return of 9.38% compared to the S&P 500's 14.08%, the company's strong ROCE of 40.26% and ROE of 31.21% suggest solid operational efficiency. Overall, while Fastenal is fairly valued, its recent stock performance relative to the broader market highlights the need for cautious optimism moving forward.