W.W. Grainger Inc (GWW) is overvalued and Watsco Inc (WSO) is overvalued.
Both trade above our estimate of their intrinsic value. WSO is the closer of the two: -63%, against -101% for GWW.
Values as of the 22 Sept 2026 close.
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
Discounting its cash flows at 9.8% (average of 3 methods) values the shares at $199.68; the price of $325.58 is 63% above that value, and 73% of that value comes from beyond year five.
Leak Score 59/100 on 3 of 12 signals
| Metric | GWW | WSO |
|---|---|---|
| Verdict | Overvalued | Overvalued |
| Price | $1268.62 | $325.58 |
| Intrinsic value | $631.74 | $199.68 |
| Margin of safety | -101% | -63% |
| Leak Score | 63/100 (10/12) | 59/100 (3/12) |
| Market cap | $59.8B | $13.4B |
| Revenue growth, 5 years | 8.8% | 7.4% |
| Operating margin | 15.6% | 9.0% |
| Net margin | 9.9% | 6.1% |
| Return on equity | 47.9% | 15.3% |
| Debt to equity | 0.68 | 0.18 |
| P/E | 32.2x | 28.3x |
| Forward P/E | 24.8x | 24.8x |
| P/B | 14.5x | 4.5x |
| Dividend yield | 0.8% | 3.8% |