Applied Industrial Technologies Inc (AIT) is overvalued and W.W. Grainger Inc (GWW) is overvalued.
Both trade above our estimate of their intrinsic value. AIT is the closer of the two: -52%, against -101% for GWW.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 9.3% (average of 3 methods) values the shares at $216.68; the price of $329.79 is 52% above that value, and 75% of that value comes from beyond year five.
Leak Score 59/100 on 3 of 12 signals
Discounting its cash flows at 9.8% (average of 3 methods) values the shares at $631.74; the price of $1268.62 is 101% above that value, and 73% of that value comes from beyond year five.
Leak Score 63/100 on 10 of 12 signals
| Metric | AIT | GWW |
|---|---|---|
| Verdict | Overvalued | Overvalued |
| Price | $329.79 | $1268.62 |
| Intrinsic value | $216.68 | $631.74 |
| Margin of safety | -52% | -101% |
| Leak Score | 59/100 (3/12) | 63/100 (10/12) |
| Market cap | $12.1B | $59.8B |
| Revenue growth, 5 years | 8.9% | 8.8% |
| Operating margin | 11.7% | 15.6% |
| Net margin | 8.3% | 9.9% |
| Return on equity | 22.4% | 47.9% |
| Debt to equity | 0.26 | 0.68 |
| P/E | 30.1x | 32.2x |
| Forward P/E | 24.9x | 24.8x |
| P/B | 6.5x | 14.5x |
| Dividend yield | 0.6% | 0.8% |