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W.W. Grainger (W.W. Grainger) Cyclically Adjusted PS Ratio : 3.63 (As of Apr. 30, 2024)


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What is W.W. Grainger Cyclically Adjusted PS Ratio?

As of today (2024-04-30), W.W. Grainger's current share price is $921.35. W.W. Grainger's Cyclically Adjusted Revenue per Share for the quarter that ended in Mar. 2024 was $253.59. W.W. Grainger's Cyclically Adjusted PS Ratio for today is 3.63.

The historical rank and industry rank for W.W. Grainger's Cyclically Adjusted PS Ratio or its related term are showing as below:

GWW' s Cyclically Adjusted PS Ratio Range Over the Past 10 Years
Min: 1.22   Med: 2.22   Max: 4.12
Current: 3.69

During the past years, W.W. Grainger's highest Cyclically Adjusted PS Ratio was 4.12. The lowest was 1.22. And the median was 2.22.

GWW's Cyclically Adjusted PS Ratio is ranked worse than
92% of 125 companies
in the Industrial Distribution industry
Industry Median: 0.55 vs GWW: 3.69

The Shiller PE Ratio was first used by professor Robert Shiller. He uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings per share of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PS Ratio. The Cyclically Adjusted Revenue per Share is the average of the inflation adjusted revenue per share of a company over the past 10 years.

W.W. Grainger's adjusted revenue per share data for the three months ended in Mar. 2024 was $85.729. Add all the adjusted revenue per share for the past 10 years together and divide 10 will get our Cyclically Adjusted Revenue per Share, which is $253.59 for the trailing ten years ended in Mar. 2024.

Shiller PE for Stocks: The True Measure of Stock Valuation


W.W. Grainger Cyclically Adjusted PS Ratio Historical Data

The historical data trend for W.W. Grainger's Cyclically Adjusted PS Ratio can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

W.W. Grainger Cyclically Adjusted PS Ratio Chart

W.W. Grainger Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Cyclically Adjusted PS Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.07 2.32 2.60 2.46 3.32

W.W. Grainger Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Cyclically Adjusted PS Ratio Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.94 3.28 2.80 3.32 4.01

Competitive Comparison of W.W. Grainger's Cyclically Adjusted PS Ratio

For the Industrial Distribution subindustry, W.W. Grainger's Cyclically Adjusted PS Ratio, along with its competitors' market caps and Cyclically Adjusted PS Ratio data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


W.W. Grainger's Cyclically Adjusted PS Ratio Distribution in the Industrial Distribution Industry

For the Industrial Distribution industry and Industrials sector, W.W. Grainger's Cyclically Adjusted PS Ratio distribution charts can be found below:

* The bar in red indicates where W.W. Grainger's Cyclically Adjusted PS Ratio falls into.



W.W. Grainger Cyclically Adjusted PS Ratio Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted PS Ratio takes the Revenue per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/S calculation. Because it considers this 10-year average, it's often referred to as the CAPS Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PS Ratio.

W.W. Grainger's Cyclically Adjusted PS Ratio for today is calculated as

Cyclically Adjusted PS Ratio=Share Price/ Cyclically Adjusted Revenue per Share
=921.35/253.59
=3.63

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

W.W. Grainger's Cyclically Adjusted Revenue per Share for the quarter that ended in Mar. 2024 is calculated as:

For example, W.W. Grainger's adjusted Revenue per Share data for the three months ended in Mar. 2024 was:

Adj_RevenuePerShare=Revenue per Share/CPI of Mar. 2024 (Change)*Current CPI (Mar. 2024)
=85.729/129.4194*129.4194
=85.729

Current CPI (Mar. 2024) = 129.4194.

W.W. Grainger Quarterly Data

Revenue per Share CPI Adj_RevenuePerShare
201406 36.141 100.560 46.513
201409 37.074 100.428 47.777
201412 36.551 99.070 47.748
201503 35.887 99.621 46.621
201506 37.473 100.684 48.168
201509 38.795 100.392 50.012
201512 39.645 99.792 51.415
201603 40.363 100.470 51.993
201606 41.820 101.688 53.225
201609 42.974 101.861 54.601
201612 41.483 101.863 52.705
201703 42.922 102.862 54.004
201706 44.869 103.349 56.187
201709 45.827 104.136 56.954
201712 46.178 104.011 57.459
201803 49.040 105.290 60.279
201806 50.590 106.317 61.583
201809 49.838 106.507 60.560
201812 49.134 105.998 59.991
201903 50.072 107.251 60.422
201906 52.220 108.070 62.536
201909 54.173 108.329 64.720
201912 52.722 108.420 62.933
202003 55.781 108.902 66.291
202006 52.831 108.767 62.862
202009 55.993 109.815 65.989
202012 55.075 109.897 64.859
202103 58.631 111.754 67.899
202106 61.086 114.631 68.966
202109 64.722 115.734 72.375
202112 65.097 117.630 71.622
202203 70.953 121.301 75.702
202206 74.795 125.017 77.429
202209 77.143 125.227 79.726
202212 75.138 125.222 77.657
202303 81.010 127.348 82.328
202306 83.141 128.729 83.587
202309 83.992 129.860 83.707
202312 80.747 129.419 80.747
202403 85.729 129.419 85.729

Add all the adjusted revenue per share together and divide 10 will get our Cyclically Adjusted Revenue per Share.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.


W.W. Grainger  (NYSE:GWW) Cyclically Adjusted PS Ratio Explanation

Compared with the regular PS Ratio, which works poorly for cyclical businesses, the Cyclically Adjusted PS Ratio smoothed out the fluctuations of revenue during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Cyclically Adjusted PS Ratio should give similar results to regular PS Ratio.


W.W. Grainger Cyclically Adjusted PS Ratio Related Terms

Thank you for viewing the detailed overview of W.W. Grainger's Cyclically Adjusted PS Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


W.W. Grainger (W.W. Grainger) Business Description

Traded in Other Exchanges
Address
100 Grainger Parkway, Lake Forest, IL, USA, 60045-5201
W.W. Grainger distributes approximately 1.5 million maintenance, repair, and operating products that are sourced from over 4,500 suppliers. The company serves about 5 million customers through its online and electronic purchasing platforms, vending machines, catalog distribution, and network of over 300 global branches. In recent years, Grainger has invested in its e-commerce capabilities and is the 11th-largest e-retailer in North America.
Executives
Laurie R Thomson officer: VP, Controller 100 GRAINGER PARKWAY, LAKE FOREST IL 60045
Donald G Macpherson director, officer: Chairman and CEO 100 GRAINGER PARKWAY, LAKE FOREST IL 60045
Matt Fortin officer: SVP & Chief HR Officer 100 GRAINGER PARKWAY, LAKE FOREST IL 60045
George S Davis director 100 GRAINGER PARKWAY, LAKE FOREST IL 60045
Rodney C Adkins director 55 GLENLAKE PARKWAY, NE, ATLANTA GA 30328
Katherine D. Jaspon director 130 ROYALL STREET, C/O DUNKIN' BRANDS, INC., CANTON MA 02021
Susan Slavik Williams director 4450 MACARTHUR BLVD., SECOND FLOOR, NEWPORT BEACH CA 92660
Stuart L Levenick director 100 NE ADAMS STREET, PEORIA IL 61629
Neil S Novich director RYERSON LTULL INC, 2621 W 15TH PLACE, CHICAGO IL 60603
V Ann Hailey director THREE LIMITED PARKWAY, COLUMBUS OH 43230
Steven Andrew White director 1 HORMEL PLACE, AUSTIN MN 55912
Beatriz R Perez director ONE COCA-COLA PLAZA, ATLANTA GA 30313
Ernest Scott Santi director ILLINOIS TOOL WORKS INC., 155 HARLEM AVE., GLENVIEW IL 60025
Lucas E Watson director 100 GRAINGER PARKWAY, LAKE FOREST IL 60045
Paige K Robbins officer: Sr. VP (see Remarks) 100 GRAINGER PARKWAY, LAKE FOREST IL 60045

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