ITW PE Ratio & Valuation, Is ITW Overvalued

Historical Valuation

Illinois Tool Works Inc (ITW) is now in the Undervalued zone, suggesting that its current forward PE ratio of 22.67 is considered Undervalued compared with the five-year average of 24.18. The fair price of Illinois Tool Works Inc (ITW) is between 284.02 to 316.67 according to relative valuation method. Compared to the current price of 277.23 USD , Illinois Tool Works Inc By Undervalued By 2.39%.

Relative Value

Fair Zone

284.02-316.67

Current Price：277.23

2.39%

Undervalued

P/E

EV/EBITDA

EV/EBIT

P/S

P/OCF

P/FCF

Trailing

Forward

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Illinois Tool Works Inc (ITW) has a current Price-to-Book (P/B) ratio of 22.56. Compared to its 3-year average P/B ratio of 23.64, the current P/B ratio is approximately -4.55% higher. Relative to its 5-year average P/B ratio of 22.24, the current P/B ratio is about 1.45% higher. Illinois Tool Works Inc (ITW) has a Forward Free Cash Flow (FCF) yield of approximately 3.93%. Compared to its 3-year average FCF yield of 3.68%, the current FCF yield is approximately 6.80% lower. Relative to its 5-year average FCF yield of 3.47%, the current FCF yield is about 13.21% lower.

Competitors Valuation Multiple

AI Analysis

The average P/S ratio for ITW competitors is 3.27, providing a benchmark for relative valuation. Illinois Tool Works Inc Corp (ITW.N) exhibits a P/S ratio of 4.41, which is 34.94% above the industry average. Given its robust revenue growth of 4.09%, this premium appears unsustainable.

P/E

P/S

EV/EBITDA

EV/EBIT

Earnings Growth

Market Cap

Performance Decomposition

AI Analysis

Market capitalization of ITW increased by 0.00% over the past 1 year(s). The primary factor behind the change was an decrease in Unknown from 0.00 to 0.00.

The secondary factor is the Unknown, contributed 0.00% to the performance.

Overall, the performance of ITW in the past 1 year(s) is driven by Unknown.

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Frequently Asked Questions

Is ITW currently overvalued or undervalued?

What is Illinois Tool Works Inc (ITW) fair value?

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. The fair price of Illinois Tool Works Inc (ITW) is between 284.02 to 316.67 according to relative valuation method.

How does ITW's valuation metrics compare to the industry average?

The average P/S ratio for ITW's competitors is 3.27, providing a benchmark for relative valuation. Illinois Tool Works Inc Corp (ITW) exhibits a P/S ratio of 4.41, which is 34.94% above the industry average. Given its robust revenue growth of 4.09%, this premium appears unsustainable.

What is the current P/B ratio for Illinois Tool Works Inc (ITW) as of Mar 10 2026?

As of Mar 10 2026, Illinois Tool Works Inc (ITW) has a P/B ratio of 22.56. This indicates that the market values ITW at 22.56 times its book value.

What is the current FCF Yield for Illinois Tool Works Inc (ITW) as of Mar 10 2026?

As of Mar 10 2026, Illinois Tool Works Inc (ITW) has a FCF Yield of 3.93%. This means that for every dollar of Illinois Tool Works Inc's market capitalization, the company generates 3.93 cents in free cash flow.

What is the current Forward P/E ratio for Illinois Tool Works Inc (ITW) as of Mar 10 2026?

As of Mar 10 2026, Illinois Tool Works Inc (ITW) has a Forward P/E ratio of 22.67. This means the market is willing to pay $22.67 for every dollar of Illinois Tool Works Inc's expected earnings over the next 12 months.

What is the current Forward P/S ratio for Illinois Tool Works Inc (ITW) as of Mar 10 2026?

As of Mar 10 2026, Illinois Tool Works Inc (ITW) has a Forward P/S ratio of 4.41. This means the market is valuing ITW at $4.41 for every dollar of expected revenue over the next 12 months.

ITW Valuation