W.W. Grainger, Inc. (GWW) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-65.7%

$472.43

vs $1,379.07 price

Levered DCF

$638.22

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

13.22

Safe zone

Rating

B+

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	28.45×	27×	22.61×	18.3×	25.78×	31.43×	21.81×	20.27×
P/B	12.94×	15.35×	13.28×	11.6×	14.35×	11.95×	9.98×	8.25×
P/S	2.69×	3×	2.51×	1.86×	2.07×	1.85×	1.61×	1.41×
EV / EBITDA	18.41×	18.53×	15.48×	12.74×	16.92×	19.54×	13.43×	12.3×
Gross margin	39.1%	39.0%	39.4%	38.4%	36.2%	35.9%	38.3%	38.7%
Operating margin	15.0%	15.4%	15.6%	14.5%	11.9%	8.6%	11.0%	10.3%
Net margin	9.5%	11.1%	11.1%	10.2%	8.0%	5.9%	7.4%	7.0%
Current ratio	2.83×	2.49×	2.88×	2.48×	2.63×	2.72×	2.12×	2.37×
Debt / equity	0.85×	0.95×	0.88×	1.11×	1.47×	1.43×	1.19×	1.16×
Interest coverage	33.22×	34.25×	27.58×	23.82×	17.78×	10.96×	15.97×	13.16×
Dividend yield	1.0%	0.8%	0.9%	1.3%	1.3%	1.5%	1.8%	2.0%
Payout ratio	27.4%	22.1%	21.4%	23.9%	34.2%	48.6%	38.6%	40.4%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	45.7%	56.8%	58.7%	63.4%	55.7%	38.0%	45.8%	40.7%
Return on invested capital	27.7%	28.6%	30.4%	29.3%	22.6%	16.5%	20.2%	19.6%
Return on assets	19.0%	21.6%	22.4%	20.4%	15.8%	11.0%	14.1%	13.3%
Free cash flow yield	2.8%	3.0%	3.8%	3.8%	2.5%	4.2%	4.4%	5.2%
Earnings yield	3.5%	3.7%	4.4%	5.5%	3.9%	3.2%	4.6%	4.9%
Enterprise value	$50.9B	$53.7B	$43.4B	$30.7B	$29.4B	$23.9B	$20.4B	$17.5B
Net debt / EBITDA	0.93×	0.74×	0.75×	0.99×	1.45×	1.66×	1.22×	1.18×
Cash conversion cycle (days)	95	95	97	98	96	92	93	91