NYSE · GWW

W.W. Grainger, Inc.

Industrials · Industrial - Distribution

$1,262.61▲ 0.35% ($4.35)at close

As of 4:00 PM ET

52-week

$906.52$1,419.91

Market cap

$59.61B

P/E

31.94

EPS (TTM)

$39.53

Next earnings

Nov 4, 2026

What the market price implies · Reverse DCF

To support a price of $1,262.61, this model requires Stage 1 FCFF to grow by 32.76%/yr over the next 5 years, compounded annually.

Historical FCFF grew by 6.26%/yr over the past 10 years. The required annual growth rate is 26.50 percentage points higher.

Selected forecast · Base scenario

6.26%/yr · Stage 1 default · years 1–5

Annual overrides take precedence over the Stage 1 default.

Market-implied · Other assumptions held fixed

32.76%/yr · Stage 1 · years 1–5

Stage 1 growth is solved while Stage 2 growth, terminal growth, discount inputs, and annual overrides remain fixed. This is a model-implied requirement, not an analyst forecast.

Valuation

Recommended · Cash-flow DCF

Price used

$1,262.61

Estimated value / share

$427.16

Base scenario

This estimate is 66.17% below the price used.

USD · TTM ending 2026-06-30

FCFF base normalized by replacing latest capex with the company's trailing median capex-to-revenue ratio.

Historical FCFF CAGR and the default growth rates are taken from the raw historical series. The valuation base is normalized for the current-period DCF.

Reported total debt includes capitalised leases (~14% of the total). They are excluded from net debt and from the WACC weights because rent is already charged inside operating income. The Net Debt shown here is therefore lower than the balance-sheet figure elsewhere on this page.

Stage 1 6.26% · Stage 2 3.5% · Discount rate 10.31%

Assumption scenarios, not statistical confidence intervals.

Method, dates & sources

Estimated from future free cash flow, discounted to its value today.

Price timestamp: Sep 17, 2026, 8:00 PM UTC
Financial statement period: TTM ending 2026-06-30
Data refreshed: Sep 17, 2026, 10:15 PM UTC · cache

Why this method?

FCFF is positive, but the year-to-year swings are too large for a direct CAGR. Normalize the cash-flow base first, then run DCF.

Is FCFF positive and has it been for 3+ consecutive years? 26 consecutive positive FCFF years are available.

Is FCFF stable (not swinging >30% year to year)? The largest recent FCFF swing is 67.0%.

Price vs Fundamentals

Why The Stock Is Moving

Optimism is getting priced inModerate confidence

1Y Price: 26.52%Revenue (TTM): 7.8%FCF (TTM): 6.64%P/FCF: 98th pct

What changed

The stock rose 26.52% over the last year. Revenue grew 7.8% over the trailing twelve months. Operating margin moved from 15.27% to 14.57%. Free cash flow grew 6.64% over the trailing twelve months.

What the market seems to be pricing

The stock is trading toward the richer end of its historical P/FCF range (98th percentile) while business metrics are improving. More of the upside is already embedded in the multiple now.

What would invalidate this read

Operating margin is at 14.57% — continued expansion would be needed to justify the premium. Revenue growth of 7.8% is encouraging, but any deceleration puts the stretched multiple at risk. This read changes if revenue, margins, and cash flow continue to improve faster than expected — in that case the richer multiple could still prove conservative.

Performance

Return analysis

Company profile

W.W.

CEODonald G. Macpherson

SectorIndustrials

IndustryIndustrial - Distribution

Employees23,550

IPO dateFeb 21, 1973

https://www.grainger.com

Market multiples

Forward P/E—

EV/EBITDA18.41

Enterprise value$50.91B

Stock splits

Jun 15, 1998↑ Forward

Every 1 shares became 2

+100%

Jun 10, 1991↑ Forward

Every 1 shares became 2

+100%

Jun 10, 1985↑ Forward

Every 1 shares became 2

+100%

Profitability & growth

Revenue growth10.25%

Gross margin (FY2025)39.06%▲0.1ppvs FY2024

Operating margin (FY2025)15%▼0.4ppvs FY2024

ROE47.92%▼0.2ppvs FY2025

Analyst consensus

RatingHold

Target price$1,312.00▲3.91%

Buy

Hold

Sell

Analyst ratings tend to be lagging indicators. Use as one signal among many.

Earnings

Full quarter-by-quarter history of actuals vs estimates. Switch into compare mode to inspect one metric year-over-year.

Next report

Nov 4, 2026

Q4 FY26 · EPS est $11.68 · Revenue est $5.07B

View

Dividends

$9.50/shareQuarterlyDividend Aristocrat · 40yrSafe

GWW pays a dividend with a 0.75% dividend yield, 40 consecutive years of growth, growing at 8.56% annually, covered 2.9× by free cash flow.

Dividend Yield

0.75%

Annual Div / Share

$9.50

5yr CAGR

+8.56%

Doubles every ~8.4yr

Payout Ratio

26.47%

Safe

Dividend Growth Rate

3yr CAGR

+9.88%

5yr CAGR

+8.56%

10yr CAGR

+7.11%

Dividend Safety

10/10Safe

Dividend History

Annualized dividend cycles per share

YearAnnual DivYoY

2026$9.50+10.2%

2025$8.62+10.2%

2024$7.82+9.2%

2023$7.16+7.2%

2022$6.68+6.0%

2021$6.30+7.7%

2020$5.85+4.5%

Income Projection

Invest

USD

Growth rate:

Reinvest dividends

Today

$8/yr

$1/mo

In 5 yrs

$11/yr+51%

$1/mo

In 10 yrs

$17/yr+127%

$1/mo

Today	In 5 yrs	In 10 yrs
$8/yr $1/mo	$11/yr+51% $1/mo	$17/yr+127% $1/mo

Yield-on-cost grows from 0.75% → 1.71% over 10yr

Analysis

Dividend Strengths

Dividend Aristocrat

GWW has raised its dividend for 40 consecutive years — qualifying as a Dividend Aristocrat, demonstrating long-term commitment to shareholder income.

Well-covered by free cash flow

The dividend is covered 2.9× by free cash flow, indicating the company generates sufficient cash to sustain and potentially grow the payout without straining its finances.

Strong dividend growth rate

The 5-year CAGR of 8.56% meaningfully outpaces inflation, compounding real income growth for long-term holders.

Risks to Watch

No strong risk signal stands out from the latest period pair.

NYSE · GWW

W.W. Grainger, Inc.

Industrials · Industrial - Distribution

$1,262.61▲ 0.35% ($4.35)at close

As of 4:00 PM ET

52-week

$906.52$1,419.91

Market cap

$59.61B

P/E

31.94

EPS (TTM)

$39.53

Next earnings

Nov 4, 2026

What the market price implies · Reverse DCF

To support a price of $1,262.61, this model requires Stage 1 FCFF to grow by 32.76%/yr over the next 5 years, compounded annually.

Historical FCFF grew by 6.26%/yr over the past 10 years. The required annual growth rate is 26.50 percentage points higher.

Selected forecast · Base scenario

6.26%/yr · Stage 1 default · years 1–5

Annual overrides take precedence over the Stage 1 default.

Market-implied · Other assumptions held fixed

32.76%/yr · Stage 1 · years 1–5

Stage 1 growth is solved while Stage 2 growth, terminal growth, discount inputs, and annual overrides remain fixed. This is a model-implied requirement, not an analyst forecast.

Valuation

Recommended · Cash-flow DCF

Price used

$1,262.61

Estimated value / share

$427.16

Base scenario

This estimate is 66.17% below the price used.

USD · TTM ending 2026-06-30

FCFF base normalized by replacing latest capex with the company's trailing median capex-to-revenue ratio.

Historical FCFF CAGR and the default growth rates are taken from the raw historical series. The valuation base is normalized for the current-period DCF.

Stage 1 6.26% · Stage 2 3.5% · Discount rate 10.31%

Assumption scenarios, not statistical confidence intervals.

Method, dates & sources

Estimated from future free cash flow, discounted to its value today.

Price timestamp: Sep 17, 2026, 8:00 PM UTC
Financial statement period: TTM ending 2026-06-30
Data refreshed: Sep 17, 2026, 10:15 PM UTC · cache

Why this method?

FCFF is positive, but the year-to-year swings are too large for a direct CAGR. Normalize the cash-flow base first, then run DCF.

Is FCFF positive and has it been for 3+ consecutive years? 26 consecutive positive FCFF years are available.

Is FCFF stable (not swinging >30% year to year)? The largest recent FCFF swing is 67.0%.

Price vs Fundamentals

Why The Stock Is Moving

Optimism is getting priced inModerate confidence

1Y Price: 26.52%Revenue (TTM): 7.8%FCF (TTM): 6.64%P/FCF: 98th pct

What changed

The stock rose 26.52% over the last year. Revenue grew 7.8% over the trailing twelve months. Operating margin moved from 15.27% to 14.57%. Free cash flow grew 6.64% over the trailing twelve months.

What the market seems to be pricing

The stock is trading toward the richer end of its historical P/FCF range (98th percentile) while business metrics are improving. More of the upside is already embedded in the multiple now.

What would invalidate this read

Performance

Return analysis

Company profile

W.W.

CEODonald G. Macpherson

SectorIndustrials

IndustryIndustrial - Distribution

Employees23,550

IPO dateFeb 21, 1973

https://www.grainger.com

Market multiples

Forward P/E—

EV/EBITDA18.41

Enterprise value$50.91B

Stock splits

Jun 15, 1998↑ Forward

Every 1 shares became 2

+100%

Jun 10, 1991↑ Forward

Every 1 shares became 2

+100%

Jun 10, 1985↑ Forward

Every 1 shares became 2

+100%

Profitability & growth

Revenue growth10.25%

Gross margin (FY2025)39.06%▲0.1ppvs FY2024

Operating margin (FY2025)15%▼0.4ppvs FY2024

ROE47.92%▼0.2ppvs FY2025

Analyst consensus

RatingHold

Target price$1,312.00▲3.91%

Buy

Hold

Sell

Analyst ratings tend to be lagging indicators. Use as one signal among many.

Earnings

Full quarter-by-quarter history of actuals vs estimates. Switch into compare mode to inspect one metric year-over-year.

Next report

Nov 4, 2026

Q4 FY26 · EPS est $11.68 · Revenue est $5.07B

View

Dividends

$9.50/shareQuarterlyDividend Aristocrat · 40yrSafe

GWW pays a dividend with a 0.75% dividend yield, 40 consecutive years of growth, growing at 8.56% annually, covered 2.9× by free cash flow.

Dividend Yield

0.75%

Annual Div / Share

$9.50

5yr CAGR

+8.56%

Doubles every ~8.4yr

Payout Ratio

26.47%

Safe

Dividend Growth Rate

3yr CAGR

+9.88%

5yr CAGR

+8.56%

10yr CAGR

+7.11%

Dividend Safety

10/10Safe

Dividend History

Annualized dividend cycles per share

YearAnnual DivYoY

2026$9.50+10.2%

2025$8.62+10.2%

2024$7.82+9.2%

2023$7.16+7.2%

2022$6.68+6.0%

2021$6.30+7.7%

2020$5.85+4.5%

Income Projection

Invest

USD

Growth rate:

Reinvest dividends

Today

$8/yr

$1/mo

In 5 yrs

$11/yr+51%

$1/mo

In 10 yrs

$17/yr+127%

$1/mo

Today	In 5 yrs	In 10 yrs
$8/yr $1/mo	$11/yr+51% $1/mo	$17/yr+127% $1/mo

Yield-on-cost grows from 0.75% → 1.71% over 10yr

Analysis

Dividend Strengths

Dividend Aristocrat

GWW has raised its dividend for 40 consecutive years — qualifying as a Dividend Aristocrat, demonstrating long-term commitment to shareholder income.

Well-covered by free cash flow

The dividend is covered 2.9× by free cash flow, indicating the company generates sufficient cash to sustain and potentially grow the payout without straining its finances.

Strong dividend growth rate

The 5-year CAGR of 8.56% meaningfully outpaces inflation, compounding real income growth for long-term holders.

Risks to Watch

No strong risk signal stands out from the latest period pair.