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 42th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. As for the metrics that stood out in our discounted cash flow analysis of Ww Grainger Inc, consider:
The company's debt burden, as measured by earnings divided by interest payments, is 13.04 -- which is good for besting 77.1% 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 30.59% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
AME, LUV, CTAS, HON, and LMT can be thought of as valuation peers to GWW, in the sense that they are in the Industrials sector and have a similar price forecast based on DCF valuation.
W.W. Grainger, Inc. (NYSE: GWW) held its virtual annual shareholder meeting today. Chairman and CEO DG Macpherson provided an update on the state of the business, including the company's response to the ongoing COVID-19 pandemic.