W.W. Grainger, Inc. (GWW) is a publicly traded company in the Industrials — Industrial - Distribution industry listed on NYSE. This overview shows the latest price, key valuation ratios, profitability metrics and financial-health indicators used by fundamental investors.
W.W. Grainger, Inc. stands as a significant global supplier of maintenance, repair, and operating (MRO) supplies and related services. Its market presence spans several international regions, including the United States, Japan, Canada, and the United Kingdom. The company structures its operations into two principal divisions: High-Touch Solutions N.A. and Endless Assortment.
Is W.W. Grainger, Inc. stock overvalued or undervalued in 2026?
W.W. Grainger, Inc. (GWW) trades at 34.7× earnings (P/E), above the median of the 297 industrials companies over $2bn in Kaplio's universe. At the decade median (26.0×) $1,020 (-25 %); at its sector median (25.8×) $1,011 (-26 %).
Kaplio overview: W.W. Grainger, Inc.
Market cap $64B · 52 weeks $918 – $1,402 (3 % below the high) · P/E 34.7× · 2027 expected P/E 26.6× · Dividend 0.70 % · 11 years rising · Next earnings November 4, 2026 · expected EPS $11.67 · Closing price, Oct 30 · accounts published Aug 4.
- Valuation: P/E 34.7× (expensive).
- Business: ROIC 27 % (solid).
- Balance sheet: Net debt/EBITDA 0.9× (solid).
- Earnings: 4 of 8 (uneven).
What would it be worth at its usual multiples?
At the decade median (26.0×) $1,020 (-25 %); at its sector median (25.8×) $1,011 (-26 %). Implied price from applying the reference multiples to today's earnings (or book value, or FFO) per share. Not a fair value: it is where the stock would trade at its usual multiples.
What matters in industrials: 6 of 10 pass
- P/E vs own 10y history 34.7×, fails.
- Cycle-adjusted EV/EBITDA 21.9×, fails.
- FCF conversion 78.0 %, borderline.
- Capex / Revenue 3.8 %, borderline.
- 5y revenue growth 11.2 %, passes.
- Operating margin 15.0 %, passes.
- ROIC 26.8 %, passes.
- Net debt / EBITDA 0.9×, passes.
- Altman Z-Score 11.8, passes.
- Piotroski F-Score 7 de 9, passes.
Against its peers (reference peers) — W.W. Grainger, Inc.: P/E 34.7×; EV/EBITDA 21.9×; ROIC 26.8 %; $64.0B. Fastenal Company (P/E 41.9×; EV/EBITDA 29.2×; ROIC 30.2 %; $59.6B), Ferguson plc (P/E 22.8×; EV/EBITDA 16.1×; ROIC 16.5 %; $46.2B), WESCO International, Inc. (P/E 21.3×; EV/EBITDA 13.4×; ROIC 8.5 %; $16.7B).
Expensive or cheap against its last ten years?
P/E at each close: today 34.7× · median 26.0× · minimum 13.8× · maximum 39.9× · cheap below 23.3× · expensive above 31.0×. It has been cheaper than today 92% of the time over its last ten years.
Dividend
solid · Yield 0.70 % ($9.75 per share in 2025) · Years raising it ≥ 11 · 5-year growth +9 % a year · Free cash flow coverage 3.5× · With $1,000 invested today you'd collect $7.00 a year ($0.58 a month).
Kaplio's reading: W.W. Grainger, Inc.
Updated on October 26, 2026 · accounts published on August 4, 2026
A highly profitable industrial business with low debt and steady growth
W.W. Grainger trades at a P/E of 34.7 over the last 12 months, higher than in 92 % of the last decade, while earning a 27 % ROIC.
- Is W.W. Grainger expensive or cheap? W.W. Grainger's P/E has been lower than today's in 92 % of the last decade, and it sits 34 % above the sector median.
- How is the business doing? Revenue rose 4.5 % over the last 12 months while EPS fell 9 %, with a 15 % operating margin above its 13 % 2014-2025 average.
- How strong is the balance sheet? Net debt was 0.9× EBITDA in fiscal 2025, just 4 % of the share price, and the dividend has risen for 11 years in a row.
- Does W.W. Grainger turn its margin into cash, and at what multiple of the cycle does it trade? Free cash flow was 78 % of net income in fiscal 2025, just short of the 85 % that counts as healthy for industrials.
- What to expect from the next earnings? Analysts expect EPS of $11.68 on November 4, 2026, below the $12.01 reported in August, and 26 of 39 rate the stock a hold.
Is W.W. Grainger expensive or cheap?
Over the last 12 months W.W. Grainger trades at a P/E of 34.7. That is 33 % above its ten-year median of 26.0 and much closer to the decade high of 39.9 than to the low of 13.8. Its sector's median P/E is 25.8 across 297 companies, so the premium to peers is 34 %. EV/EBITDA of 21.9 compares with a seven-year average of 16.5, and the free cash flow yield is just 2.5 %. The shares are up 43 % over the last 12 months and sit 3 % below their 52-week high of $1,402.03.
How is the business doing?
Revenue keeps growing: it is up 4.5 % over the last 12 months, and revenue per share compounded 11 % a year over fiscal 2020-2025, close to double the 6 % that counts as healthy for industrials. EPS has slipped 9 % year over year, but margins hold up well. The operating margin of 15 % over the last 12 months beats the 13 % average for fiscal 2014-2025. Returns stand out most. ROIC of 27 % is 17.9 points above the sector median of 9 %, and it has stayed above 10 % in each of the last ten fiscal years.
How strong is the balance sheet?
Debt is not a worry. At the end of fiscal 2025, net debt of $55.51 per share came to 0.9× EBITDA, well under the 3× ceiling considered healthy for industrials, and to 4 % of the current price. A current ratio of 2.81 and an Altman Z of 11.8, far above the 2.99 safe-zone line, point the same way. The dividend yields only 0.7 % over the last 12 months. Still, it took 27 % of fiscal 2025 earnings and has grown for 11 consecutive fiscal years, which leaves room to keep raising it.
Does W.W. Grainger turn its margin into cash, and at what multiple of the cycle does it trade?
Industrials are semi-cyclical. A strong margin in a good year matters only if it turns into cash and the stock is not priced at peak-cycle multiples, which is why this sector is judged on operating margin, cash conversion and cycle-adjusted multiples. W.W. Grainger clears the bar on margin and ROIC, and its Piotroski score of 7 out of 9 meets the high-quality threshold. Cash conversion is borderline at 78 % in fiscal 2025, and capex of 3.8 % of revenue sits just below the 4 % to 8 % range. A cycle-adjusted EV/EBITDA of 21.9 against a seven-year average of 16.5 fails the test.
What to expect from the next earnings?
W.W. Grainger reports on November 4, 2026, and the consensus expects EPS of $11.68 for the quarter. On August 4, 2026, it earned $12.01 per share against $11.30 expected, a 6.3 % beat, but it has beaten EPS estimates in only 4 of the last 8 quarters. Expectations are stable: the 2026 EPS consensus barely moved over the last 30 days, from $46.52 to $46.54 across 12 analysts, and the 2026 revenue estimate is also flat. Of 39 analysts, 9 say buy, 26 say hold and 4 say sell, a cautious view of a stock that is up 43 % in a year.
How this was prepared: the data comes from companies' official filings, collected by a professional provider, and from Kaplio's analysis engine (trailing-12-month ratios, 10 years of history and sector medians computed across US-listed companies). The text is written from that data alone, every figure is checked against it before publication, and it is reviewed when the company reports results. This is not investment advice.
Investor methods verdict
Would Buffett approve W.W. Grainger today?
The Buffett Method would wait for a better price for W.W. Grainger: it yields 3.7% before tax; it asks for 10%. Business quality: 100 out of 100 (price not included). Kaplio assessment with data from the week of 2026-10-26; not investment advice.
Would Peter Lynch approve W.W. Grainger today?
The Lynch Method would wait for a better price for W.W. Grainger: P/E 34.7 with 22% growth; it asks that the P/E not exceed growth. Business quality: 63 out of 100 (price not included). Lynch classifies it as a stalwart. Kaplio assessment with data from the week of 2026-10-26; not investment advice.
Profitability
| Return on Equity | 48.70% |
| Return on Invested Capital | 26.81% |
| Return on Assets | 19.44% |
| Gross Margin | 39.40% |
| Operating Margin | 14.57% |
| Net Margin | 9.92% |
Financial Health
| Debt / Equity | 0.68 |
| Current Ratio | 2.81 |
| Piotroski F-Score | 7 |
| Altman Z-Score | 11.82 |
Price Performance
| 1 month | +6.05% |
| 3 months | -1.67% |
| Year-to-date | +34.70% |
| 1 year | +38.83% |
| 3 years | +83.15% |
| 5 years | +190.47% |
| 10 years | +567.73% |
Dividend History
Paid in the last 12 months: $9.5000 per share in 4 payments.
| Date | Amount |
|---|---|
| 2026-11-09 | $2.4900 |
| 2026-08-10 | $2.4900 |
| 2026-05-11 | $2.4900 |
| 2026-02-09 | $2.2600 |
| 2025-11-10 | $2.2600 |
| 2025-08-11 | $2.2600 |
| 2025-05-12 | $2.2600 |
| 2025-02-10 | $2.0500 |
| 2024-11-08 | $2.0500 |
| 2024-08-12 | $2.0500 |
Amounts adjusted for stock splits.
Related companies: FAST · FERG · WCC · AIT · MSM
Explore sector: Industrials · Industrial - Distribution
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