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, 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, peers such as Pool Corp. exhibit a higher P/E of 30.46, while WESCO International, Inc. has a more favorable P/E of 20.94, suggesting that MSC Industrial Direct is not competitively priced within its industry.
In terms of recent performance, MSC Industrial Direct has underperformed compared to the S&P 500, with a 1-year return of 2.19% versus the S&P 500's 14.08%. This trend is further highlighted over longer periods, where the company’s 3-year return of 11.89% starkly contrasts with the S&P 500's 81.19%, reinforcing the notion of overvaluation.