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:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Ww Grainger Inc. To summarize, we found that Ww Grainger Inc ranked in the 30th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 51%. As for the metrics that stood out in our discounted cash flow analysis of Ww Grainger Inc, consider:
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 34.3% of tickers in our DCF set.
Relative to other stocks in its sector (Industrials), Ww Grainger Inc has a reliance on debt greater than just 23.11% of them.
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 MSA, NDSN, DOV, EMR, and CMI.
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.