Illinois Tool Works Inc. (ITW) Valuation
Historical valuation analysis based on 1279 data points (2021-09-14 to 2026-10-16)
Founded in 1912, Illinois Tool Works has become a diversified industrial manufacturer through acquisitions and innovations that follow customer needs. ITW operates through seven business segments,...
Illinois Tool Works Inc. (ITW) currently trades at a P/E ratio of 24.28 (historical range: 19.09–28.94, median: 24.04), placing it at the 55th percentile — near its historical average, P/S ratio of 4.71 (range: 3.60–5.51, 55th percentile — near its historical average), EV/EBITDA of 19.80 (range: 17.36–23.98, 36th percentile).
Illinois Tool Works Inc. trades near its historical valuation range, with most metrics close to their median levels.
Historical Valuation Metrics
| Metric | Current | Median | %ile | Assessment |
|---|---|---|---|---|
| P/E Ratio | 24.28 | 24.04 | 55th | near its historical average |
| P/S Ratio | 4.71 | 4.67 | 55th | near its historical average |
| EV/EBITDA | 19.80 | 20.25 | 36th | below its historical average |
| FCF Yield | 3.77% | 3.56% | 73th | below its historical average |
Illinois Tool Works Inc. (ITW) Valuation & P/E History
Illinois Tool Works Inc. (ITW) is a US-listed stock operating in the Industrials sector, specifically the General Industrial Machinery & Equipment industry currently trading at $272.28 with a market capitalization of $77.5 billion. This page provides historical valuation analysis for ITW based on 1279 data points covering 2021-09-14 to 2026-10-16. The P/E ratio of 24.28 is above the historical median of 24.04, placing ITW at the 55th percentile of its valuation range. The P/S ratio of 4.71 compares to a median of 4.67.
ITW Valuation Metrics & Historical Range
The valuation table above shows Illinois Tool Works Inc.'s current and historical valuation multiples, including P/E ratio, P/S ratio, EV/EBITDA, FCF yield, and dividend yield. Each metric is compared to its own historical range to determine whether ITW is currently trading above or below its typical valuation levels.
- P/E ratio: Price-to-earnings measures how much investors pay per dollar of earnings. A P/E above the historical median suggests ITW is expensively valued; below the median suggests it is cheap.
- P/S ratio: Price-to-sales is useful for companies with volatile or negative earnings. Lower P/S relative to history may indicate value.
- EV/EBITDA: Enterprise value to EBITDA adjusts for debt and cash, providing a capital-structure-neutral valuation measure for Illinois Tool Works Inc..
- FCF yield: Free cash flow yield shows the cash return relative to market price. Higher yields may indicate undervaluation.
Is ITW Overvalued or Undervalued?
Illinois Tool Works Inc. trades near its historical valuation range, with most metrics close to their median levels. The overall valuation percentile of 49 combines P/E, P/S, and EV/EBITDA percentiles into a single measure of how expensive ITW is relative to its own history. A percentile below 25 suggests the stock may be undervalued, while a percentile above 75 suggests it may be overvalued.
However, valuation is only one factor in investment decisions. A stock can remain "overvalued" for years if growth accelerates, or "undervalued" if the business deteriorates. Always combine valuation analysis with financial statement analysis and the full ITW analysis page for a complete picture.
Valuation data is computed from historical price and fundamental data via Polygon.io and Finnhub.ITW trades on NYSE/NASDAQ. This page is for informational purposes only and is not financial advice.