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DCF valuation

What is W.W. Grainger, Inc. worth?

With the base-case assumptions below, a discounted cash flow model on W.W. Grainger, Inc.'s reported free cash flow gives $582.79 per share. The share price was $1,472.91 on November 10, 2026, 153% above that value.

Inputs from the filings

Free cash flow, fiscal 2025
$1.33B
Average free cash flow, last 5 years
$1.25B
Cash
$768M
balance sheet of September 30, 2026
Debt
$2.69B
balance sheet of September 30, 2026
Diluted shares, fiscal 2025
48,000,000
Revenue growth per year, last 5 years
8.7%

Three sets of assumptions

CaseGrowth yrs 1-5Growth yrs 6-10After year 10Discount rateValue per shareValue vs price
Bear3.5%3.0%2.0%10.0%$347.96-76%
Base8.5%5.5%2.5%9.0%$582.79-60%
Bull13.5%8.5%3.0%8.0%$1,050.97-29%

Sensitivity: base case value per share

Discount rate down the side, growth after year 10 across the top. Everything else as in the base case.

1.5%2.0%2.5%3.0%3.5%
7.0%$758.38$812.27$878.14$960.48$1,066.34
8.0%$627.13$662.08$703.38$752.95$813.52
9.0%$531.32$555.22$582.79$614.96$652.97
10.0%$458.42$475.41$494.67$516.68$542.08
11.0%$401.17$413.63$427.55$443.21$460.97

Where the presets come from

Base: years 1 to 5 grow at W.W. Grainger, Inc.'s revenue growth rate over the last 5 fiscal years (8.7% a year), held between -5% and 15%. Years 6 to 10 grow halfway between that and the long-run rate of 2.5%. Future cash is discounted at 9% a year.

Bear: 5 points less growth, 2% long-run growth, 10% discount rate. Bull: 5 points more growth (at most 25%), 3% long-run growth, 8% discount rate.

Value per share = (present value of 10 years of free cash flow + present value of everything after + cash - debt) / diluted shares.

This is a model run on assumptions, not a recommendation or a price target. Small changes in the discount rate or growth move the result a lot, as the table above shows. Change them yourself in the calculator.

Adjust the assumptions

Move the sliders for growth, long-run growth and discount rate, or switch to average free cash flow, and see the value per share change.

Adjust the assumptions

W.W. Grainger, Inc. company page