ITW Relative Valuation
ITW's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, ITW is overvalued; if below, it's undervalued.
Historical Valuation
Illinois Tool Works Inc (ITW) is now in the Undervalued zone, suggesting that its current forward PE ratio of 22.72 is considered Undervalued compared with the five-year average of 24.26. The fair price of Illinois Tool Works Inc (ITW) is between 253.38 to 282.85 according to relative valuation methord. Compared to the current price of 249.38 USD , Illinois Tool Works Inc is Undervalued By 1.58%.
Relative Value
Fair Zone
253.38-282.85
Current Price：249.38
1.58%
Undervalued
22.66
PE
1Y
3Y
5Y
Trailing
Forward
16.69
EV/EBITDA
Illinois Tool Works Inc. (ITW) has a current EV/EBITDA of 16.69. The 5-year average EV/EBITDA is 17.63. The thresholds are as follows: Strongly Undervalued below 15.62, Undervalued between 15.62 and 16.62, Fairly Valued between 18.63 and 16.62, Overvalued between 18.63 and 19.64, and Strongly Overvalued above 19.64. The current Forward EV/EBITDA of 16.69 falls within the Historic Trend Line -Fairly Valued range.
18.26
EV/EBIT
Illinois Tool Works Inc. (ITW) has a current EV/EBIT of 18.26. The 5-year average EV/EBIT is 19.51. The thresholds are as follows: Strongly Undervalued below 17.19, Undervalued between 17.19 and 18.35, Fairly Valued between 20.67 and 18.35, Overvalued between 20.67 and 21.83, and Strongly Overvalued above 21.83. The current Forward EV/EBIT of 18.26 falls within the Undervalued range.
4.41
PS
Illinois Tool Works Inc. (ITW) has a current PS of 4.41. The 5-year average PS is 4.51. The thresholds are as follows: Strongly Undervalued below 3.83, Undervalued between 3.83 and 4.17, Fairly Valued between 4.85 and 4.17, Overvalued between 4.85 and 5.19, and Strongly Overvalued above 5.19. The current Forward PS of 4.41 falls within the Historic Trend Line -Fairly Valued range.
21.17
P/OCF
Illinois Tool Works Inc. (ITW) has a current P/OCF of 21.17. The 5-year average P/OCF is 21.45. The thresholds are as follows: Strongly Undervalued below 16.77, Undervalued between 16.77 and 19.11, Fairly Valued between 23.78 and 19.11, Overvalued between 23.78 and 26.12, and Strongly Overvalued above 26.12. The current Forward P/OCF of 21.17 falls within the Historic Trend Line -Fairly Valued range.
24.25
P/FCF
Illinois Tool Works Inc. (ITW) has a current P/FCF of 24.25. The 5-year average P/FCF is 24.37. The thresholds are as follows: Strongly Undervalued below 19.51, Undervalued between 19.51 and 21.94, Fairly Valued between 26.80 and 21.94, Overvalued between 26.80 and 29.23, and Strongly Overvalued above 29.23. The current Forward P/FCF of 24.25 falls within the Historic Trend Line -Fairly Valued range.
Illinois Tool Works Inc (ITW) has a current Price-to-Book (P/B) ratio of 22.61. Compared to its 3-year average P/B ratio of 23.59 , the current P/B ratio is approximately -4.17% higher. Relative to its 5-year average P/B ratio of 22.18, the current P/B ratio is about 1.95% higher. Illinois Tool Works Inc (ITW) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 3.59%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 3.49% , the current FCF yield is about -100.00% lower.
22.55
P/B
Median3y
23.59
Median5y
22.18
3.92
FCF Yield
Median3y
3.59
Median5y
3.49
Competitors Valuation Multiple
The average P/S ratio for ITW's competitors is , providing a benchmark for relative valuation. Illinois Tool Works Inc Corp (ITW) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of 2.34%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of ITW decreased by 1.65% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 19.08 to 24.20.
The secondary factor is the Revenue Growth, contributed 2.34%to the performance.
Overall, the performance of ITW in the past 1 year is driven by P/E Change. Which is more unsustainable.
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FAQ
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