Is W.W. Grainger, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for W.W. Grainger, Inc. has moved from expensive to fair. The company appears fairly valued based on its current metrics, with a P/E ratio of 58, a Price to Book Value of 33.39, and an EV to EBITDA of 40.91. In comparison to peers, Fastenal Co. has a P/E of 46.51 and an EV to EBITDA of 31.81, while Ferguson Plc shows a P/E of 28.08 and an EV to EBITDA of 17.28, indicating that W.W. Grainger is positioned competitively within its industry.
Despite a fair valuation, W.W. Grainger's recent stock performance has lagged behind the S&P 500, with a year-to-date return of -9.40% compared to the S&P 500's 13.30%. Over a longer horizon, however, the company has shown resilience with a 5-year return of 148.99%, outperforming the S&P 500's 91.29%.