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 to be fairly valued based on its current metrics. Key ratios include a P/E ratio of 58, a Price to Book Value of 33.39, and an EV to EBITDA of 40.91, which indicate a premium valuation relative to some peers.
In comparison, 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, suggesting that W.W. Grainger is positioned in the middle of its peer group. Despite recent underperformance, with a year-to-date return of -9.40% compared to the S&P 500's 13.30%, the long-term outlook remains strong, as evidenced by a 5-year return of 148.99% against the S&P 500's 91.29%.