W. W. Grainger DCF Stock Analysis.

Here’s my assumptions:

Risk Free Rate (10 Years Interest Rate Swap): 4.18%

Risk Premium (Taken from the Aswath Damodaran equity premium spreadsheet): 4.33%

Interest Rate Spread on The Risk free rate ( For the cost of debt calculation): 4%

Historical Data

Revenue growth in the last 10 years (CAGR): 6.43%

Earnings growth in the last 10 years (CAGR): 9.52%

Unlevered Free Cash Flow growth in the last 10 years (CAGR): 6.27%

Future Assumptions

End of Year FCF growth: 7%

Growth until end of 2026: 7%

Growth until end of 2034: 6%

Perpetual growth: 3%

Net Debt: 2.185B

Outstanding Stock Options Present Value Assumption: $0B

Restricted Stock Units Present Value Assumption: $0.143B

Stock Valuation based on these assumptions: $684

Last update 01/25/2026

All the content in this newsletter should be taken as informational content only. THIS IS NOT FINANCIAL ADVICE! Do your own Due Diligence before investing or contact a professional financial advisor.

I don’t have a position in W.W. Grainger (GWW) and I don’t plan to add a position in the coming days.