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

As of 17 October 2025, the valuation grade for W.W. Grainger, Inc. moved from expensive to fair, indicating a more favorable assessment of its market position. 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 ratio of 40.91. In comparison to peers, W.W. Grainger's P/E ratio is higher than Ferguson Plc's 28.08 but lower than Fastenal Co.'s 46.51, suggesting a competitive valuation within its industry.
Despite its fair valuation, W.W. Grainger has underperformed relative to the S&P 500 in the short term, with a year-to-date return of -9.40% compared to the index's 13.30%. However, over the longer term, the company has shown resilience with a 5-year return of 148.99%, significantly outperforming the S&P 500's 91.29%.