Is MSC Industrial Direct Co., Inc. overvalued or undervalued?

As of 10 September 2025, the valuation grade for MSC Industrial Direct Co., Inc. has moved from expensive to very expensive, indicating a significant deterioration in its valuation outlook. The company is currently overvalued based on its valuation ratios, which include a P/E ratio of 21, a Price to Book Value of 3.41, and an EV to EBITDA of 11.99. In comparison to its peers, Pool Corp. has a higher P/E ratio of 30.46, while WESCO International, Inc. presents a more favorable P/E of 20.94, suggesting that MSC Industrial Direct may be priced too high relative to its industry.
The recent stock performance shows that MSC Industrial Direct has underperformed against the S&P 500 over the longer term, particularly in the 3-year and 5-year periods, with returns of 22.55% and 43.50%, respectively, compared to the S&P 500's 70.41% and 96.61%. This underperformance reinforces the notion that the stock may not justify its current valuation levels.