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

As of 14 November 2025, the valuation grade for MSC Industrial Direct Co., Inc. moved from very expensive to expensive. 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 ratio of 11.99. In comparison to peers, Pool Corp. has a higher P/E ratio of 30.46, while WESCO International, Inc. is more favorably valued with a P/E of 20.94.
Despite a year-to-date return of 14.82%, which slightly outperformed the S&P 500's return of 14.49%, the long-term performance shows a concerning trend, with MSC Industrial Direct Co., Inc. lagging significantly behind the S&P 500 over three and five years. This underperformance, coupled with its elevated valuation ratios, supports the conclusion that the stock is overvalued.