Illinois Tool Works Inc (ITW) Stock Analysis — PE Ratio, PS Ratio, Intrinsic Value & 2030 Price Target
Illinois Tool Works Inc stock (ITW) is currently trading at $266.45. Illinois Tool Works Inc PE ratio is 25.24. Illinois Tool Works Inc PS ratio (Price-to-Sales) is 4.76. Analyst consensus price target for ITW is $280.88. WallStSmart rates ITW as Hold.
- ITW PE ratio analysis and historical PE chart
- ITW PS ratio (Price-to-Sales) history and trend
- ITW intrinsic value — DCF, Graham Number, EPV models
- ITW stock price prediction 2025 2026 2027 2028 2029 2030
- ITW fair value vs current price
- ITW insider transactions and insider buying
- Is ITW undervalued or overvalued?
- Illinois Tool Works Inc financial analysis — revenue, earnings, cash flow
- ITW Piotroski F-Score and Altman Z-Score
- ITW analyst price target and Smart Rating
Illinois Tool Works Inc
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ITW Intrinsic Value Analysis for Value Investors
Benjamin Graham Formula · Illinois Tool Works Inc (ITW)
ITW trades 54% above its Graham fair value of $194.04, indicating the stock may be overvalued at current levels.
Based on Benjamin Graham Formula. Growth rate capped at 25%. For informational purposes only. Not financial advice.
Smart Analysis
Illinois Tool Works Inc (ITW) · 10 metrics scored
Smart Score
Category Performance
WallStSmart pulls financial metrics like revenue growth, profit margins, and valuation ratios and scores each one from 0 to 10 based on how strong or weak it is. Those 10 scores are grouped into 4 categories: Growth, Profitability, Valuation, and Quality — which form the 4 axes of the spider chart you see. The categories are then combined into a final score out of 100, but not equally. Growth and Profitability together count for 60% of the total, because a fast-growing profitable business matters more than just a cheap one. That final number maps to a rating (Strong Buy, Buy, Hold, Avoid) and a letter grade, giving you one clear Stock Rating.
Investment Thesis
Strong fundamentals in market cap, return on equity, operating margin. Concerns around price/book and revenue growth. Fundamentals are solid but monitor weak areas for improvement.
Illinois Tool Works Inc (ITW) Key Strengths (5)
Every $100 of shareholder equity generates $94 in profit
85.94% of shares held by major funds and institutions
Large-cap company with substantial market presence
Strong operational efficiency: $27 kept per $100 revenue
Strong profitability: $19 kept per $100 revenue
Illinois Tool Works Inc (ITW) Areas to Watch (5)
Very expensive at 23.0x book value
Revenue growing slowly at 4.10% annually
Paying a premium for growth, expensive relative to earnings expansion
Premium valuation at 4.8x annual revenue
Modest earnings growth at 7.30%
Supporting Valuation Data
Illinois Tool Works Inc (ITW) Detailed Analysis Report
Overall Assessment
This company scores 58/100 in our Smart Analysis, earning a C grade. Out of 10 metrics analyzed, 5 register as strengths (avg 9.0/10) while 5 fall into concern territory (avg 3.2/10). The category breakdown reveals uneven performance, with some areas requiring attention.
The Bull Case
The strongest argument centers on Return on Equity, Institutional Own., Market Cap. Profitability is solid with Return on Equity at 93.70%, Operating Margin at 26.80%, Profit Margin at 19.10%.
The Bear Case
The primary concerns are Price/Book, Revenue Growth, PEG Ratio. Some valuation metrics including PEG Ratio (2.61), Price/Sales (4.76), Price/Book (23.03) suggest expensive pricing. Growth concerns include Revenue Growth at 4.10%, EPS Growth at 7.30%, which may limit upside.
Key Dynamics to Monitor
Three factors to monitor going forward. First, whether Price/Book improves, as this is the primary drag on the overall score. Second, margin trajectory, with Return on Equity at 93.70% currently healthy but needing to be sustained. Third, growth sustainability, with Revenue Growth at 4.10% needing to reaccelerate.
Risk Considerations
Based on the metric profile, this is a moderate-to-high risk investment. Strengths and concerns are roughly balanced. Investors should size positions according to their risk tolerance and maintain diversification.
Bottom Line
Mixed fundamentals with both positives (Return on Equity, Institutional Own.) and negatives (Price/Book, Revenue Growth). A cautious approach is warranted. Monitor for improvement in weak areas before increasing conviction.
Disclaimer: Smart Analysis is a scoring system developed by WallStSmart Team. Scores update daily using multi-model valuation framework. Always conduct your own research and consult with financial advisors before making investment decisions.
ITW Price-to-Sales(PS) Ratio Chart
Historical valuation based on market cap ÷ trailing 12-month revenue
ITW's Price-to-Sales ratio of 4.76x trades 110% above its historical average of 2.27x (97th percentile), historically expensive. The current valuation is 6% below its historical high of 5.07x set in Mar 2026, and 467% above its historical low of 0.84x in Feb 2009.
WallStSmart Analysis Synopsis
Data-driven financial summary for Illinois Tool Works Inc (ITW) · INDUSTRIALS › SPECIALTY INDUSTRIAL MACHINERY
The Big Picture
Illinois Tool Works Inc is a strong growth company balancing expansion with improving profitability. Revenue reached 16.0B with 410% growth year-over-year. Profit margins of 19.1% are healthy, with room for further expansion as the business scales.
Key Findings
Revenue growing at 410% YoY, reaching 16.0B. This pace significantly outperforms most SPECIALTY INDUSTRIAL MACHINERY peers.
ROE of 9370.0% means the company generates strong returns on shareholder equity. Above 20% is considered top-tier.
What to Watch Next
Growth sustainability: can Illinois Tool Works Inc maintain 410%+ revenue growth, or will competition slow it down?
Sector dynamics: monitor SPECIALTY INDUSTRIAL MACHINERY industry trends, competitive moves, and regulatory changes that could impact Illinois Tool Works Inc.
Bottom Line
Illinois Tool Works Inc offers an attractive blend of growth (410% revenue expansion) and improving fundamentals. The company is transitioning from pure growth to profitable growth, a critical inflection point. Watch for sustained margin expansion as the key signal.
This synopsis is generated from publicly available financial data. It is not financial advice. Always conduct your own research and consult a qualified financial advisor before making investment decisions.
Insider Transactions
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About Illinois Tool Works Inc(ITW)
NYSE
INDUSTRIALS
SPECIALTY INDUSTRIAL MACHINERY
USA
Illinois Tool Works Inc. or ITW is an American company that produces engineered fasteners and components, equipment and consumable systems, and specialty products.