Illinois Tool Valuation

ITW Stock  USD 258.11  1.98  0.76%   
At this time, the firm appears to be fairly valued. Illinois Tool Works retains a regular Real Value of $261.67 per share. The prevalent price of the firm is $258.11. Our model calculates the value of Illinois Tool Works from evaluating the firm fundamentals such as Return On Equity of 1.1, current valuation of 83.35 B, and Return On Asset of 0.17 as well as inspecting its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Illinois Tool's valuation include:
Price Book
22.9855
Enterprise Value
83.3 B
Enterprise Value Ebitda
16.3207
Price Sales
4.7943
Forward PE
24.3309
Fairly Valued
Today
258.11
Please note that Illinois Tool's price fluctuation is very steady at this time. Calculation of the real value of Illinois Tool Works is based on 3 months time horizon. Increasing Illinois Tool's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
The fair value of the Illinois stock is determined by what a typical buyer is willing to pay for full or partial control of Illinois Tool Works. Since Illinois Tool is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Illinois Stock. However, Illinois Tool's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
Historical Market  258.11 Real  261.67 Target  263.84 Hype  258.09
The intrinsic value of Illinois Tool's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Illinois Tool's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
232.30
Downside
261.67
Real Value
262.62
Upside
Estimating the potential upside or downside of Illinois Tool Works helps investors to forecast how Illinois stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Illinois Tool more accurately as focusing exclusively on Illinois Tool's fundamentals will not take into account other important factors:
Earnings
Estimates (0)
LowProjectedHigh
2.272.352.56
Details
Hype
Prediction
LowEstimatedHigh
257.14258.09259.04
Details
21 Analysts
Consensus
LowTarget PriceHigh
240.10263.84292.86
Details
Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Illinois Tool's intrinsic value based on its ongoing forecasts of Illinois Tool's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Illinois Tool's closest peers.

Illinois Tool Cash

1.12 Billion

Illinois Valuation Trend

Analysing the historical paterns of Illinois Tool's enterprise value and its market capitalization is a good way to estimate and gauge the value of Illinois Tool Works over time and is usually enough for investors to make rational market timing decisions.

Illinois Revenue by Product

Illinois Tool Total Value Analysis

Illinois Tool Works is currently anticipated to have company total value of 83.35 B with market capitalization of 76.22 B, debt of 8.37 B, and cash on hands of 708 M. Please note that company total value may be misleading and is a subject to accounting gimmicks. We encourage investors to carefully check all of the Illinois Tool fundamentals before making security assessment based on enterprise value of the company
  Takeover PriceMarket CapDebt ObligationsCash
83.35 B
76.22 B
8.37 B
708 M

Illinois Tool Investor Information

About 83.0% of the company shares are owned by institutional investors. The company recorded earning per share (EPS) of 11.72. Illinois Tool Works last dividend was issued on the 31st of March 2025. The entity had 2:1 split on the 26th of May 2006. Illinois Tool Works is performing exceptionally good at this time. It has a great probability to report excellent financial results in March.
Current ValueLast YearChange From Last Year 10 Year Trend
Operating Profit Margin0.140.2682
Way Down
Slightly volatile
Total Cash From Operating Activities4.3 B4.1 B
Sufficiently Up
Slightly volatile
Operating Income4.9 B4.6 B
Sufficiently Up
Slightly volatile

Illinois Tool Asset Utilization

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Illinois Tool has an asset utilization ratio of 103.8 percent. This indicates that the Company is making $1.04 for each dollar of assets. An increasing asset utilization means that Illinois Tool Works is more efficient with each dollar of assets it utilizes for everyday operations.
 
Black Monday
 
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Yuan Drop
 
Covid

Illinois Tool Ownership Allocation

Illinois Tool Works has a total of 295.3 Million outstanding shares. The majority of Illinois Tool Works outstanding shares are owned by outside corporations. These institutional investors are usually referred to as non-private investors looking to purchase positions in Illinois Tool to benefit from reduced commissions. Consequently, third-party entities are subject to a different set of regulations than regular investors in Illinois Tool Works. Please pay attention to any change in the institutional holdings of Illinois Tool Works as this could imply that something significant has changed or is about to change at the company. Please note that on October 16, 2024, Representative Scott Franklin of US Congress acquired $50k to $100k worth of Illinois Tool Works's common stock.

Illinois Tool Profitability Analysis

The company reported the last year's revenue of 16.11 B. Total Income to common stockholders was 2.96 B with profit before taxes, overhead, and interest of 7.04 B.

Illinois Tool Past Distributions to stockholders

About Illinois Tool Valuation

Our relative valuation model uses a comparative analysis of Illinois Tool. We calculate exposure to Illinois Tool's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Illinois Tool's related companies.
Last ReportedProjected for Next Year
Gross Profit7.8 B4.1 B
Pretax Profit Margin 0.28  0.29 
Operating Profit Margin 0.27  0.14 
Net Profit Margin 0.22  0.23 
Gross Profit Margin 0.44  0.30 

Illinois Tool Quarterly Retained Earnings

28.58 Billion

Illinois Tool's stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether Illinois Tool's value is low or high relative to the company's performance and growth projections. Determining the market value of Illinois Tool can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of Illinois Tool represents a small ownership stake in the entity. As a stockholder of Illinois, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.

Illinois Tool Dividends Analysis For Valuation

At this time, Illinois Tool's Dividends Paid is fairly stable compared to the past year. Dividend Paid And Capex Coverage Ratio is likely to climb to 2.26 in 2025, whereas Dividend Yield is likely to drop 0.01 in 2025. . At this time, Illinois Tool's Retained Earnings are fairly stable compared to the past year. Earnings Yield is likely to climb to 0.06 in 2025, whereas Retained Earnings Total Equity is likely to drop slightly above 18.7 B in 2025.
Last ReportedProjected for Next Year
Dividends Paid1.9 BB
Dividend Yield 0.02  0.01 
Dividend Payout Ratio 0.49  0.27 
Dividend Paid And Capex Coverage Ratio 1.94  2.26 
There are various types of dividends Illinois Tool can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Illinois shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Illinois Tool Works directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Illinois pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Illinois Tool by the value of the dividends paid out.

Illinois Tool Growth Indicators

Investing in growth stocks can be very risky. If the company such as Illinois Tool does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Common Stock Shares Outstanding303.6 M
Quarterly Earnings Growth Y O Y0.068
Forward Price Earnings24.3309

Illinois Tool Current Valuation Indicators

Valuation refers to the process of determining the present value of Illinois Tool Works and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Illinois we look at many different elements of the entity such as Illinois's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Illinois Tool, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Illinois Tool's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Illinois Tool's worth.

Additional Tools for Illinois Stock Analysis

When running Illinois Tool's price analysis, check to measure Illinois Tool's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Illinois Tool is operating at the current time. Most of Illinois Tool's value examination focuses on studying past and present price action to predict the probability of Illinois Tool's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Illinois Tool's price. Additionally, you may evaluate how the addition of Illinois Tool to your portfolios can decrease your overall portfolio volatility.