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

As of 10 October 2025, the valuation grade for MSC Industrial Direct Co., Inc. moved from very expensive to expensive, indicating a shift towards a less favorable valuation. The company appears to be overvalued based on its current metrics, with a P/E ratio of 21, a Price to Book Value of 3.41, and an EV to EBITDA of 11.99. In comparison, WESCO International, Inc. has a P/E of 20.94 and an EV to EBITDA of 13.40, while Core & Main, Inc. shows a more attractive valuation with a P/E of 29.46 and an EV to EBITDA of 16.78.
Recent stock performance reveals that MSC Industrial Direct has underperformed relative to the S&P 500 over the past year, returning 5.39% compared to the index's 13.36%. This trend is further highlighted in the longer term, where the stock's 3-year return of 15.53% significantly lags behind the S&P 500's 81.39%. Overall, these factors suggest that the company is overvalued in its current market position.