NYSE
ITW
Last Price
US $270.47
KEY FIGURES
MKT CAP
$77.0B
EPS
TTM
$10.87
PEG
TTM
N/M
P/E
TTM
24.81x
P/S
TTM
4.80x
YIELD
2.36%
GROWTH
Revenue Y/Y
Profit margin
Current Ratio
Capital Returns
97.38%
Return on equity
ROIC: 24.68%
Valuation History
24.8X
Price to Earnings
EV/EBITDA: 18.4X
Cash flow
Profit margin
4.99%
(FY vs FY)
EBITDA Y/Y
6.86%
(FY vs FY)
Cash flow Y/Y
1.04%
(FY vs FY)
Cash Flow (DCF)
Fair Value
Market $270.47
-67.91%
Default assumptions
EBITDA Multiple
Fair Value
Market $270.47
-68.65%
Default assumptions
Base valuations use default assumptions. Customize in the Valuator.
Valuation
Financial
Performance
Financial stability - Cash flow debt coverage.
Illinois Tool Works Inc. cash flow to debt ratio of 34.85% indicates that the company generates enough cash to cover its debts. This level indicates strong financial health.
Financial risk - Healthy cash flow growth.
Illinois Tool Works Inc.'s free cash flow has decreased -4.82% from $2.84G last year to $2.71G, signaling decreasing performance
Financial risk - Healthy debt to equity ratio.
Illinois Tool Works Inc.'s debt to equity ratio is 2.83, which means that the company's assets are unhealthy financed, signaling financial risk. READ MORE: A ratio over 0.60 means the company finances its assets with debt, signaling financial risk. If ratio is negative, the company spent its own equity and risks bankruptcy
Financial risk - Healthy debt to equity ratio development.
Illinois Tool Works Inc.'s debt has increased relative to shareholder equity from 2.44 last year to 2.83 today, signaling weakened financials
Financial stability - Net debt/EBITDA.
Illinois Tool Works Inc. has a net debt to EBITDA ratio of 1.75x, which is below the 3.00x threshold, indicating healthy leverage and financial stability
Financial stability - ICR.
Illinois Tool Works Inc.'s interest coverage ratio of 14.43 indicates that earnings with good margin can cover interest payments on company debt
Financial risk - Profit margin growth.
Illinois Tool Works Inc.'s profit margin has decreased (-11.94%) in the last year from 21.94% to 19.32%, signaling decreasing performance
Financial stability - Short term assets vs short term liabilities.
Illinois Tool Works Inc.'s short-term assets of $6.20G exceed its short-term liabilities of $5.13G
Increasing performance - ROA.
Illinois Tool Works Inc.'s return on assets of 19.27% is higher than the 5.00% threshold, indicating efficient asset utilization
Increasing performance - Absolute return on equity.
Illinois Tool Works Inc.'s return on equity of 97.38%, is higher than 15.00%, indicating good performance
Increasing performance - Earnings quality.
Illinois Tool Works Inc.'s operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation
Increasing performance - Earnings stability.
Illinois Tool Works Inc. had positive net income in 5.00 out of 5 years, indicating stable and consistent earnings
Increasing performance - Free cash flow.
Illinois Tool Works Inc. has positive free cash flow, indicating the company generates cash after capital expenditures
Increasing performance - FCF yield.
Illinois Tool Works Inc. has a free cash flow yield of 3.51%, which is above the 2.00% threshold, indicating strong cash generation relative to market value
Decreasing performance - Healthy earnings growth.
Illinois Tool Works Inc.'s yearly earnings has decreased -12.10% since last year from $3.49G to $3.07G, signaling decreasing performance
Increasing performance - Healthy revenue growth.
Illinois Tool Works Inc.'s yearly revenue has increased 0.92% since last year from $15.90G to $16.04G, signaling increasing performance
Increasing performance - ROIC.
ROIC 24.68% (Source: FMP key-metrics). At or above the 10% threshold. Score: 2 of 2. The company is generating returns above the upper end of the typical US weighted-average cost of capital range under this definition of invested capital.
Increasing performance - 3-year revenue CAGR.
Illinois Tool Works Inc.'s 3-year revenue CAGR of 0.23% is positive, indicating growing revenue over the past 3 years
Increasing performance - Revenue consistency.
Illinois Tool Works Inc. had revenue growth in 4.00 out of 5 years, indicating consistent revenue performance
Increasing performance - ROE consistency.
Illinois Tool Works Inc. had positive ROE in 5.00 out of 5 years, indicating consistent and reliable returns on equity
Overvalued - DCF valuation.
Illinois Tool Works Inc. is overvalued relative to its fair value price of 86.79 based on Discounted Cash Flow model
Undervalued - Earnings yield.
Illinois Tool Works Inc. has an earnings yield of 4.06%, which is above the 4.00% threshold, indicating the stock offers reasonable value relative to its earnings
Overvalued - EBITDA valuation.
Illinois Tool Works Inc. is overvalued relative to its fair value price of 84.78 based on EBITDA multiple model
Undervalued - EV/EBITDA.
Illinois Tool Works Inc. has an EV/EBITDA ratio of 18.34x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings
Overvalued - PEG ratio value.
Illinois Tool Works Inc. has negative trailing-twelve-month earnings; this ratio is not meaningful and the check fails
Overvalued - P/B ratio.
Illinois Tool Works Inc. has a price-to-book ratio of 23.90x, which exceeds the 5.00x threshold, indicating the stock may be overvalued relative to its book value
Undervalued - P/S ratio.
Illinois Tool Works Inc. has a price-to-sales ratio of 4.75x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue