Illinois Tool Works Inc (ITW) Fair Value & Analysis
Industrials · US · Market cap $79.4B · ISIN US4523081093
What is Illinois Tool Works Inc really worth?
Illinois Tool Works Inc
ITW · US
A solid business, but trading 86% above our fair value of $145.84.
Strengths
Risks
For context
Fair value as of: Aug 29, 2026
From 25 valuation models · updated 6 days ago
Share price −7.9% over the past month.
What runs behind every stock
69 individual criteria per stock, every one traceable See the method →
What matters now
- A high-quality business (quality 73/100), yet the market already pays well above fair value. Quality at a full price, with little margin of safety.
- The price sits above even our optimistic bull case ($232.34). The favourable scenario is already priced in.
- A fairly wide model range ($91.06 to $232.34) leaves room in how you read the outcome.
Price vs Fair Value (5 years)
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 29, 2026.
How to read this chart
60‑month range $160.02 – $297.32 · fair‑value band $91.06 – $232.34 · the $271.65 price screens above the $145.84 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 29, 2026.
Analysis
Illinois Tool Works Inc (ITW) currently trades at $271.65, while our model-based Fair Value estimate is $145.84, implying the stock looks roughly 86.3% overvalued today. The Quality Score stands at 73/100 (solid quality), in the Industrials sector. Bull case: the Growth Earnings group reads highest at a median of $179.13 per share, and 0 of the 25 models we run sit above the $271.65 price. Bear case: the Economic Profit group reads lowest at $67.16, and 25 of the 25 models stay below the price. Evidence for this calculation is high.
Over the trailing twelve months, Illinois Tool Works Inc generated revenue of $16.2B at a net margin of 19.3%. Revenue grew 4.6% year over year. It earns a return on equity of 96.9%. Net debt stands at $8.1B. Fundamentals as of Aug 29, 2026
Our scenario range runs from $91.06 (bear case) to $232.34 (bull case); at $271.65, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 10% below its 52-week high and 16% above its 52-week low, currently above its 200-day average. For context, the median of 10 Industrials peers we cover trades at −52% fair-value upside, at −46%, ITW screens cheaper than that median.
Fair Value models
This estimate rests on fiscal year 2025 figures, and about 8 months have passed since. In that time the company retained roughly $2.85 per share, which is 2.0 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.
Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.
All 25 models by family
Widest divergence: Growth Earnings ($179.13) versus Asset-Based ($7.51). Highest evidence: FCF DCF (80).
Notify me when ITW reaches fair value
Put ITW on your watchlist. We get in touch as soon as price and fair value meet or the trend turns.
Set up alert →Free, no payment details. Unsubscribe anytime in one click.
Key figures & financial health
More key figures
Figures from reported company fundamentals · as of Aug 29, 2026. TTM = trailing twelve months.
Quality Score breakdown
Of which business quality 68 · Market factors (momentum, volatility) 56
Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.
All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.
About the company
Illinois Tool Works Inc. provides industrial products and equipment in North America, Europe, the Middle East, Africa, the Asia Pacific, and South America. It operates through seven segments: Automotive OEM; Food Equipment; Test & Measurement and Electronics; Welding; Polymers & Fluids; Construction Products; and Specialty Products.
Full company description
Illinois Tool Works Inc. provides industrial products and equipment in North America, Europe, the Middle East, Africa, the Asia Pacific, and South America. It operates through seven segments: Automotive OEM; Food Equipment; Test & Measurement and Electronics; Welding; Polymers & Fluids; Construction Products; and Specialty Products. The Automotive OEM segment offers plastic and metal components, fasteners, and assemblies for automobiles, light trucks, and other industrial uses. The Food Equipment segment provides warewashing, cooking, refrigeration, and food processing equipment; kitchen exhaust, ventilation, and pollution control systems; and food equipment maintenance and repair services. The Test & Measurement and Electronics segment produce and sells test and measurement; and electronic manufacturing and maintenance, repair, and operations solutions. The Welding segment produces arc welding equipment, and metal arc welding consumables and related accessories. The Polymers & Fluids segment produces adhesives, sealants, lubrication and cutting fluids, and fluids and polymers for auto aftermarket maintenance and appearance. The Construction Products segment offers engineered fastening systems and solutions for the residential construction, renovation/remodel, and commercial construction markets. The Specialty Products segment provides beverage packaging equipment and consumables, product coding and marking equipment and consumables, and appliance components and fasteners. The company serves automotive OEM and aftermarket, commercial food equipment, construction, general industrial, industrial capital goods, consumer durables, and other markets, as well as MRO markets. It distributes its products directly to industrial manufacturers, as well as through independent distributors. Illinois Tool Works Inc. was founded in 1912 and is based in Glenview, Illinois.
Company description, as reported by the company or data provider.
Revenue & earnings trend
FY2021 – FY2025 · reported fiscal years
Illinois Tool Works Inc reported revenue of $16.0B in FY2025 versus $14.5B in FY2021, a compound +2.6%/yr. Reported net income was $3.1B in FY2025, compounding +3.3%/yr from FY2021.
of which total revenue +1.6 % · buybacks/dilution +2.7 %
Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).
ITW screens 86% overvalued. Compare with GE Vernova Inc →
Recent news
External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.
- Illinois Tool Works (ITW) Dividend Update Draws Focus, Is The Valuation Still Too Rich?
- Why Is Illinois Tool Works (ITW) Down 2.4% Since Last Earnings Report?
- Illinois Tool Works Stock: Analyst Estimates & Ratings
Peer Group
Specialty Industrial Machinery · 792 stocks
How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.
Valuation Multiples vs Specialty Industrial Machinery median · lower = cheaper
Strength profile in five axes (Snowflake)
Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.
VALUE 0: the price sits above our fair-value range.
Insider activity: 30/100
Values & ESG
Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.
Similar stocks
10 more Specialty Industrial Machinery stocks, each showing price versus our Fair Value estimate (as of Aug 29, 2026).
| Stock | Price | Fair Value | vs Fair Value |
|---|---|---|---|
| GE Vernova Inc GEV | $941.84 | $131.95 | −86% |
| SIE SIE | €289.85 | €139.77 | −52% |
| Eaton Corporation ETN | $402.78 | $168.65 | −58% |
| Parker-Hannifin Corporation PH | $995.02 | $398.69 | −60% |
| Atlas Copco AB ATCOA | kr 206.60 | kr 112.59 | −46% |
| Cummins Inc CMI | $564.40 | $348.94 | −38% |
| Emerson Electric Co EMR | $155.18 | $58.44 | −62% |
| AMETEK, Inc AME | $236.25 | $125.80 | −47% |
| Rockwell Automation, Inc ROK | $417.53 | $125.76 | −70% |
| Sandvik AB SAND | kr 384.40 | kr 193.01 | −50% |
Compare Illinois Tool Works Inc with another stock
Price, fair value, quality and upside side by side.
Explore undervalued stocks
More undervalued Industrials stocks →
Try a ready-made strategy
Pick a strategy and jump into the live analysis with that exact screen applied.
Discover tools
Frequently asked questions
Is Illinois Tool Works Inc (ITW) overvalued or undervalued?
What is the fair value of ITW?
What is the quality score of ITW?
What is the revenue of Illinois Tool Works Inc (ITW)?
What is the net profit margin of ITW?
Does Illinois Tool Works Inc pay a dividend?
Watch Illinois Tool Works Inc in the live analysis
One click puts Illinois Tool Works Inc on your watchlist: fair value and trend at a glance, plus comparison, the diversification check and the 35,000+ stock screener. You can also try 14 days of Pro there, no card.
Watch for free →Zero risk: nothing is ever charged. Your watchlist is yours, with or without an account.