W.W. Grainger (W.W. Grainger) GF Value Rank : 3 (As of Apr. 27, 2024)

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What is W.W. Grainger GF Value Rank?

W.W. Grainger has the GF Value Rank of 3.

The GF Value Rank is determined by the price-to-GF-Value (P/GF Value) ratio, a proprietary metric calculated based on historical multiples along with an adjustment factor based on a company's past returns and growth and future estimates of the business' performance.

GuruFocus found that for valuation, we cannot simply give stocks a better GF Value rank simply because they have a lower P/GF Value ratio. Backtesting shows that over the long term, the two worst-performing groups are the most expensive group (with the highest P/GF Value ratio) and the least expensive group (with the lowest P/GF Value ratio).

We can understand why the most expensive group underperforms. We were initially puzzled by the underperformance of the least expensive group, but we realized there is a reason why some stocks are super cheap. If they look too undervalued, it is often because the businesses behind them are poor quality. The market realized this and gave them low valuations. In a way, the market is efficient.

After multiple backtesting analyses, we granted the stocks in third-cheapest percentile the highest GF Value rank, as they have performed the best over a full market cycle. Stock performance is actually not as sensitive to valuation as it is to growth and profitability. On average, the companies in the 20%-50% valuation groups have similar performances. Therefore, we should avoid the most expensive and the least expensive stocks. We can be more tolerant of valuation.

Please click GF Score to see more details on the GF Score's 5 Key Aspects of Analysis.

Competitive Comparison of W.W. Grainger's GF Value Rank

For the Industrial Distribution subindustry, W.W. Grainger's GF Value Rank, along with its competitors' market caps and GF Value Rank 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 GF Value Rank Distribution in the Industrial Distribution Industry

For the Industrial Distribution industry and Industrials sector, W.W. Grainger's GF Value Rank distribution charts can be found below:

* The bar in red indicates where W.W. Grainger's GF Value Rank falls into.

W.W. Grainger GF Value Rank Related Terms

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

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Distribution » W.W. Grainger Inc (NYSE:GWW) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

GWW:Germany GWW:Germany G1WW34:Brazil GWW:Austria

Address

100 Grainger Parkway, Lake Forest, IL, USA, 60045-5201

Website

https://www.grainger.com

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