Illinois Tool Works

ITW US Industrials Industrial Machinery & Supplies & Components
S&P 500
$268.16
+1.12%
Delayed · cached 15 min

Fair value analysis

ITW
Illinois Tool Works
IndustrialsIndustrial Machinery & Supplies & Components
$268.16
Close used for this calculation
$155.25Fair value
Financial DNA Score
Profitability · Returns · Balance Sheet · Efficiency · Growth
52/100
Profitability15/25
Returns12/25
Balance Sheet14/25
Efficiency11/25
Growth4/25
Good
Quality radar
52Prof.15/25Ret.12/25Eff.11/25B.Sht14/25Growth4/25

Consensus fair value

$155.25
Above FV
▼ -42.1% against the close used
Model range $35.46 – $209.80
The lowest and highest of the models that produced a value. This is the spread of the methods, not a price target.

Price target range & 52-week position

Bear$35.46Fair value$155.25Bull$209.80
FairClose
52-week traded range
52W low $241.0752W high $299.60

The 52-week range is measured from the stored price history, not estimated.

Valuation summary

Trading above the consensus fair value

Illinois Tool Works closed at $268.16, 72.7% above the consensus fair value of $155.25 drawn from 9 valuation models.

Financial DNA score 52/100 — Good. P/E of 25.6x against the 20x sector multiple the P/E model uses.

Quantitative summary only — not investment advice.

All valuation models

DCF Valuation
$133.04
-50.4%
Σ[CF×(1+g)^n/(1.10)^n] + TV/(1.10)^10
g=3.4%, r=10%, tg=3%, n=10yr
Graham Number
$82.32
-69.3%
√(22.5 × EPS × BVPS)
EPS=10.49, BVPS=28.71 · outside Graham range (P/E 25.6, P/B 9.3) — asset-light, treat as a rough floor
P/E Fair Value
$209.80
-21.8%
EPS × 20x (sector P/E)
EPS=10.49, Sector P/E=20x
Peter Lynch (PEG)
$35.46
-86.8%
EPS × Growth% (PEG = 1 is fair)
EPS=10.49, g=3.4%
EV/EBITDA
$157.93
-41.1%
(EBITDA × 11.7x − Net Debt) ÷ Shares
EBITDA=4.53B
Dividend Discount (DDM)
$95.48
-64.4%
D1 ÷ (r − g) where D1 = D0×(1+g)
D0=6.11, r=10%, g=3.4%
Book Value (P/B)
$146.68
-45.3%
BVPS × (ROE−g)÷(r−g) [Justified P/B — RIM-based]
BVPS=28.71, ROE=37.2%, g=3.4%, r=10%
Reverse DCF
$268.16
+0.0%
Solve for g: Price = Σ[EPS×(1+g)^n/(1.10)^n] + TV
Implied: 10.5% | Historical: 3.4%
Margin of Safety
$106.29
-60.4%
Avg(DCF, Graham, P/E) × 75% (25% safety buffer)
Avg fair value=141.72, MoS=25%

Computed on September 12, 2026 from the most recent annual report on file and that day's closing price. Where a company has seen its earnings move sharply since its last annual report, this figure will lag the market.

Educational data only. Not a recommendation to buy, sell or hold any security.

Educational data only. Not a recommendation to buy, sell or hold any security.