WW Grainger operates as a distributor of maintenance, repair, and operating (MRO) supplies; and other related products and services that are used by businesses and institutions primarily in the United States and Canada. The company offers material handling equipment, safety and security supplies, lighting and electrical products, power and hand tools, pumps and plumbing supplies, cleaning and maintenance supplies, building and home inspection supplies, vehicle and fleet components, and various other products. The company was founded in 1927 and is based in Lake Forest, Illinois.
GWW Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Ww Grainger Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Ww Grainger Inc ranked in the 31th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. The most interesting components of our discounted cash flow analysis for Ww Grainger Inc ended up being:
The company's debt burden, as measured by earnings divided by interest payments, is 10.01 -- which is good for besting 74.77% of its peer stocks (US stocks in the Industrials sector with positive cash flow).
GWW's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 28.24% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Ww Grainger Inc? See BWEN, DOV, TT, GD, and MEC.
GWW's Stock Price Holds Firm Source W.W. Grainger (GWW), despite the decline in MRO (maintenance, repair, and operations) sales in the industry, saw demand rising in the healthcare product category. While this mitigated some of the top-line loss, GWW saw an increased share of low-margin, pandemic-related essential products, which can...
Badsha Chowdhury on Seeking Alpha | September 21, 2020
With me today are D.G. Macpherson, Chairman and CEO; and Tom Okray, SVP and CFO. Whether dealing with the pandemic or with social injustice issues, our team has been fantastic throughout this uncertain time.