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W.W. Grainger (FRA:GWW) Cyclically Adjusted PS Ratio : 3.74 (As of May. 15, 2024)


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What is W.W. Grainger Cyclically Adjusted PS Ratio?

As of today (2024-05-15), W.W. Grainger's current share price is €876.20. W.W. Grainger's Cyclically Adjusted Revenue per Share for the quarter that ended in Mar. 2024 was €234.22. W.W. Grainger's Cyclically Adjusted PS Ratio for today is 3.74.

The historical rank and industry rank for W.W. Grainger's Cyclically Adjusted PS Ratio or its related term are showing as below:

FRA:GWW' s Cyclically Adjusted PS Ratio Range Over the Past 10 Years
Min: 1.22   Med: 2.22   Max: 4.12
Current: 3.75

During the past years, W.W. Grainger's highest Cyclically Adjusted PS Ratio was 4.12. The lowest was 1.22. And the median was 2.22.

FRA:GWW's Cyclically Adjusted PS Ratio is ranked worse than
91.13% of 124 companies
in the Industrial Distribution industry
Industry Median: 0.565 vs FRA:GWW: 3.75

The Shiller PE Ratio was first used by professor Robert Shiller. He uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings per share of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PS Ratio. The Cyclically Adjusted Revenue per Share is the average of the inflation adjusted revenue per share of a company over the past 10 years.

W.W. Grainger's adjusted revenue per share data for the three months ended in Mar. 2024 was €78.870. Add all the adjusted revenue per share for the past 10 years together and divide 10 will get our Cyclically Adjusted Revenue per Share, which is €234.22 for the trailing ten years ended in Mar. 2024.

Shiller PE for Stocks: The True Measure of Stock Valuation


W.W. Grainger Cyclically Adjusted PS Ratio Historical Data

The historical data trend for W.W. Grainger's Cyclically Adjusted PS Ratio can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

W.W. Grainger Cyclically Adjusted PS Ratio Chart

W.W. Grainger Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Cyclically Adjusted PS Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.07 2.32 2.60 2.46 3.32

W.W. Grainger Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Cyclically Adjusted PS Ratio Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.94 3.28 2.80 3.32 4.01

Competitive Comparison of W.W. Grainger's Cyclically Adjusted PS Ratio

For the Industrial Distribution subindustry, W.W. Grainger's Cyclically Adjusted PS Ratio, along with its competitors' market caps and Cyclically Adjusted PS Ratio data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


W.W. Grainger's Cyclically Adjusted PS Ratio Distribution in the Industrial Distribution Industry

For the Industrial Distribution industry and Industrials sector, W.W. Grainger's Cyclically Adjusted PS Ratio distribution charts can be found below:

* The bar in red indicates where W.W. Grainger's Cyclically Adjusted PS Ratio falls into.



W.W. Grainger Cyclically Adjusted PS Ratio Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted PS Ratio takes the Revenue per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/S calculation. Because it considers this 10-year average, it's often referred to as the CAPS Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PS Ratio.

W.W. Grainger's Cyclically Adjusted PS Ratio for today is calculated as

Cyclically Adjusted PS Ratio=Share Price/ Cyclically Adjusted Revenue per Share
=876.20/234.22
=3.74

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

W.W. Grainger's Cyclically Adjusted Revenue per Share for the quarter that ended in Mar. 2024 is calculated as:

For example, W.W. Grainger's adjusted Revenue per Share data for the three months ended in Mar. 2024 was:

Adj_RevenuePerShare=Revenue per Share/CPI of Mar. 2024 (Change)*Current CPI (Mar. 2024)
=78.87/129.4194*129.4194
=78.870

Current CPI (Mar. 2024) = 129.4194.

W.W. Grainger Quarterly Data

Revenue per Share CPI Adj_RevenuePerShare
201406 26.600 100.560 34.234
201409 28.769 100.428 37.074
201412 29.643 99.070 38.724
201503 33.159 99.621 43.077
201506 33.388 100.684 42.917
201509 34.567 100.392 44.562
201512 36.394 99.792 47.199
201603 36.246 100.470 46.690
201606 37.220 101.688 47.370
201609 38.289 101.861 48.648
201612 39.326 101.863 49.965
201703 40.132 102.862 50.493
201706 39.933 103.349 50.006
201709 38.449 104.136 47.784
201712 39.020 104.011 48.552
201803 39.771 105.290 48.886
201806 43.305 106.317 52.715
201809 42.711 106.507 51.899
201812 43.189 105.998 52.732
201903 44.313 107.251 53.473
201906 46.215 108.070 55.345
201909 49.189 108.329 58.765
201912 47.450 108.420 56.640
202003 50.482 108.902 59.993
202006 46.914 108.767 55.822
202009 47.538 109.815 56.025
202012 45.272 109.897 53.314
202103 49.250 111.754 57.035
202106 50.701 114.631 57.242
202109 55.013 115.734 61.518
202112 57.611 117.630 63.385
202203 64.426 121.301 68.738
202206 70.756 125.017 73.248
202209 77.914 125.227 80.523
202212 70.931 125.222 73.309
202303 75.663 127.348 76.894
202306 76.739 128.729 77.151
202309 78.701 129.860 78.434
202312 74.045 129.419 74.045
202403 78.870 129.419 78.870

Add all the adjusted revenue per share together and divide 10 will get our Cyclically Adjusted Revenue per Share.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.


W.W. Grainger  (FRA:GWW) Cyclically Adjusted PS Ratio Explanation

Compared with the regular PS Ratio, which works poorly for cyclical businesses, the Cyclically Adjusted PS Ratio smoothed out the fluctuations of revenue during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Cyclically Adjusted PS Ratio should give similar results to regular PS Ratio.


W.W. Grainger Cyclically Adjusted PS Ratio Related Terms

Thank you for viewing the detailed overview of W.W. Grainger's Cyclically Adjusted PS Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


W.W. Grainger (FRA:GWW) Business Description

Traded in Other Exchanges
Address
100 Grainger Parkway, Lake Forest, IL, USA, 60045-5201
W.W. Grainger distributes approximately 1.5 million maintenance, repair, and operating products that are sourced from over 4,500 suppliers. The company serves about 5 million customers through its online and electronic purchasing platforms, vending machines, catalog distribution, and network of over 300 global branches. In recent years, Grainger has invested in its e-commerce capabilities and is the 11th-largest e-retailer in North America.

W.W. Grainger (FRA:GWW) Headlines

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