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

As of 14 November 2025, the valuation grade for MSC Industrial Direct Co., Inc. has moved from very expensive to expensive, indicating a slight improvement in its valuation outlook. The company appears to be overvalued based on its current metrics, particularly 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 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 is not competitively priced within its industry.
Despite a year-to-date return of 16.00%, which outperformed the S&P 500's 14.49%, the longer-term performance reveals a concerning trend, with a 3-year return of only 3.18% compared to the S&P 500's 70.17%. This discrepancy reinforces the notion that MSC Industrial Direct Co., Inc. is currently overvalued relative to its peers and the broader market performance.