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DCF Valuation
Base-case fair value
$795.24
Intrinsic $1060.32 · 25% MOS
Current price: $1365.41
Base-case summary
Our base-case DCF for W.W. Grainger, Inc. (GWW) projects 10 years of free cash flow growth at 15.1% for years 1–5 and 7.6% for years 6–10, anchored to 15.1% historical FCF growth, then applies a 2.5% perpetual growth rate and a 8.0% discount rate. Starting from $1.4B in trailing free cash flow, this produces an intrinsic value of $1060.32 per share. A 25% safety margin gives a fair value of $795.24, suggesting the stock is currently 42% overvalued against the $1365.41 market price.
See 3 scenarios side by side
Conservative, Base, and Optimistic fair values, plus the sensitivity matrix and FCF history. Free account.
Model inputs
TTM Free Cash Flow
$1.4B
Cash & equivalents
$695M
Total debt
$2.8B
Shares outstanding
47M