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

As of 17 October 2025, the valuation grade for MSC Industrial Direct Co., Inc. has moved from expensive to very expensive, indicating a significant increase in perceived overvaluation. 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 peers, Pool Corp. has a higher P/E of 30.46, while WESCO International, Inc. shows a more favorable P/E of 20.94, suggesting that MSC Industrial Direct is not competitively priced within its industry.
Furthermore, the company's recent stock performance has lagged behind the S&P 500, with a 1-year return of 2.19% compared to the S&P 500's 14.08%. This underperformance, combined with the high valuation ratios, reinforces the conclusion that MSC Industrial Direct Co., Inc. is overvalued in the current market environment.