Ferguson Enterprises Inc (FERG) is fairly valued and W.W. Grainger Inc (GWW) is overvalued.
Against our estimates of intrinsic value, FERG trades at the wider discount: a margin of safety of +3%, against -101% for GWW.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 10.2% (average of 3 methods) values the shares at $228.71; the price of $221.17 is 3% below that value, and 72% of that value comes from beyond year five.
Leak Score 49/100 on 5 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 | FERG | GWW |
|---|---|---|
| Verdict | Fairly valued | Overvalued |
| Price | $221.17 | $1268.62 |
| Intrinsic value | $228.71 | $631.74 |
| Margin of safety | +3% | -101% |
| Leak Score | 49/100 (5/12) | 63/100 (10/12) |
| Market cap | $42.8B | $59.8B |
| Revenue growth, 5 years | 6.2% | 8.8% |
| Operating margin | 9.6% | 15.6% |
| Net margin | 6.8% | 9.9% |
| Return on equity | 37.5% | 47.9% |
| Debt to equity | 1.11 | 0.68 |
| P/E | 19.8x | 32.2x |
| Forward P/E | 17.6x | 24.8x |
| P/B | 6.9x | 14.5x |
| Dividend yield | 1.5% | 0.8% |