SweetValueLab
Write for us

Illinois Tool Works Inc. — Intrinsic Value & Fair Price

ITW
NYSEIndustrialsIndustrial - MachineryCIK 0000049826itw.comAbout ITW
Last close · Oct 16, 2026272.28+1.09 (+0.40%)
Market cap$77.5B
Model value · DCF · Perpetuity growth · 5y
165.77
Illinois Tool Works closed at $272.28 — overvalued by 64% vs model.
107.80the model's range333.97

DCF · Perpetuity growth · 5y leads for dividend payer — positive operating income and three years of positive free cash flow. From a five-year discounted cash flow.

Other models
82.77 – 299.45
Wall St. target
297.00 8% below
Above model, 1y
20 of 20 days

Price and model value

Embed this card

ITW's close against its model value, as a 420×168 card for your own page. It updates nightly with this site and links back here.

Free to embed; keep the attribution link.
Loading chart…
What the marks mean
Daily close

Dividends

Quarterly · as of Oct 16, 2026
Yield, trailing 12 months
2.41%
Past 2 years
low 2.05%high 2.70%
Dividends per share, a year at a time
$4.64Sep ’21$4.97Sep ’22$5.33Sep ’23$5.70Sep ’24$6.11Sep ’25$6.55TTM
Dividends / free cash flow, FY2025
65.9%
Raised
38 years in a row
Growth, 5 yrs
7.1% a year
Last change
+6.8% · Sep 2026
Every payment, with ex-dates · latest $1.72, paid Oct 9, 2026

Research on ITW

No posts on ITW yet.
Studied ITW from its filings? Guest posts are reviewed before they go live.Write about ITW →

How it is valued

Valued asDividend Payer
Revenue declining (~-0% recent)Moderate margins (19% net margin)Pays dividendsHighly cyclical earningsHigh leverage (D/E 2.8x)
What growth the price implies: the reverse DCF

Key figures

FY2025
P/E
26.0×
EV / EBITDA
18.4×
FCF yield
3.4%
Dividend yield, TTM
2.41%
Beta
0.97
Cost of capital (WACC)
8.63%
Full financials

Analyst actions

third-party, quoted
10-09JP Morgan · “Neutral” from “Overweight”downgrade
10-09UBS · target277.00
10-05Truist Financial · target297.00
07-29UBS · target300.00
Ratings, targets and estimates

Comparable companies

by business, not by industry label
3 more companies list ITW as a comparable

The weekly

One email a week across every stock we cover: 13F filings, insider trades, earnings and new research. It covers the whole market, not just ITW. No account.

About Illinois Tool Works

Illinois Tool Works Inc. is a global enterprise specializing in the production and distribution of a wide array of industrial goods and specialized equipment. The company operates through seven distinct divisions: Automotive OEM; Food Equipment; Test & Measurement and Electronics; Welding; Polymers & Fluids; Construction Products; and Specialty Products. The Automotive OEM division supplies plastic and metal components, various fastening solutions, and integrated assemblies for automobiles, light-duty trucks, and other industrial applications. Its Food Equipment segment delivers commercial kitchen appliances for washing, refrigeration, cooking, and food processing, alongside comprehensive kitchen exhaust, ventilation, and pollution control systems, and offers related maintenance and repair services. The Test & Measurement and Electronics unit manufactures and sells machinery, expendable supplies, and accompanying software designed for assessing materials and structural integrity, in addition to equipment and consumables critical for the creation of electronic subassemblies and microelectronic components. The Welding division focuses on arc welding apparatus, coupled with metal arc welding consumables and associated accessories. The Polymers & Fluids segment produces adhesives, sealing compounds, lubrication and cutting fluids, and various fluids and polymers intended for automotive aftermarket upkeep and cosmetic purposes. The Construction Products segment provides purpose-engineered fastening systems and comprehensive solutions for new housing, renovation projects, and commercial building industries. Lastly, the Specialty Products segment delivers machinery and supplies for beverage packaging, equipment and expendables for product identification and marking, and specialized components and fasteners for appliances. ITW's broad clientele encompasses sectors such as automotive original equipment manufacturers (OEMs) and their suppliers, the commercial food service industry, construction companies, general industrial enterprises, and the automotive aftermarket. The corporation distributes its offerings directly to industrial manufacturers and via an extensive network of independent distributors. Established in 1912, Illinois Tool Works Inc. is headquartered in Glenview, Illinois.

CEO
Christopher A. O'Herlihy
Headquarters
Glenview, IL
Employees
43,000
IPO
1973-03-13
Full company profile

Model estimates for research reference only, not investment advice. Every model rests on assumptions that may not match what happens; the formulas are in how we value a stock.