Illinois Tool Works Stock Current Valuation

ITW Stock  USD 277.52  1.48  0.54%   
Valuation analysis of Illinois Tool Works helps investors to measure Illinois Tool's intrinsic value by examining its available valuation indicators, including the cash flow records, the balance sheet account changes and income statement patterns. At this time, Illinois Tool's Enterprise Value Over EBITDA is fairly stable compared to the past year. Enterprise Value Multiple is likely to climb to 20.27 in 2024, whereas Enterprise Value is likely to drop slightly above 17 B in 2024. Fundamental drivers impacting Illinois Tool's valuation include:
Price Book
24.1674
Enterprise Value
89.4 B
Enterprise Value Ebitda
17.6932
Price Sales
5.1384
Forward PE
25.8398
Overvalued
Today
277.52
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  277.52 Real  263.25 Target  239.07 Hype  277.26 Naive  275.25
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.
262.24
Downside
263.25
Real Value
305.27
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
2.542.842.94
Details
Hype
Prediction
LowEstimatedHigh
276.25277.26278.27
Details
Potential
Annual Dividend
LowForecastedHigh
3.633.683.73
Details
21 Analysts
Consensus
LowTarget PriceHigh
217.55239.07265.37
Details

Illinois Tool Works Company Current Valuation Analysis

Illinois Tool's Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.

Enterprise Value

 = 

Market Cap + Debt

-

Cash

More About Current Valuation | All Equity Analysis

Current Illinois Tool Current Valuation

    
  89.35 B  
Most of Illinois Tool's fundamental indicators, such as Current Valuation, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Illinois Tool Works is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.

Illinois Current Valuation Driver Correlations

Understanding the fundamental principles of building solid financial models for Illinois Tool is extremely important. It helps to project a fair market value of Illinois Stock properly, considering its historical fundamentals such as Current Valuation. Since Illinois Tool's main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of Illinois Tool's historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of Illinois Tool's interrelated accounts and indicators.
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Click cells to compare fundamentals

Illinois Current Valuation Historical Pattern

Today, most investors in Illinois Tool Stock are looking for potential investment opportunities by analyzing not only static indicators but also various Illinois Tool's growth ratios. Consistent increases or drops in fundamental ratios usually indicate a possible pattern that can be successfully translated into profits. However, when comparing two companies, knowing each company's current valuation growth rates may not be enough to decide which company is a better investment. That's why investors frequently use a static breakdown of Illinois Tool current valuation as a starting point in their analysis.
   Illinois Tool Current Valuation   
       Timeline  
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Competition

In accordance with the recently published financial statements, Illinois Tool Works has a Current Valuation of 89.35 B. This is much higher than that of the Machinery sector and significantly higher than that of the Industrials industry. The current valuation for all United States stocks is significantly lower than that of the firm.

Illinois Current Valuation Peer Comparison

Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Illinois Tool's direct or indirect competition against its Current Valuation to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Illinois Tool could also be used in its relative valuation, which is a method of valuing Illinois Tool by comparing valuation metrics of similar companies.
Illinois Tool is currently under evaluation in current valuation category among its peers.

Illinois Tool ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Illinois Tool's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Illinois Tool's managers, analysts, and investors.
Environmental
Governance
Social

Illinois Fundamentals

About Illinois Tool Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Illinois Tool Works's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Illinois Tool using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Illinois Tool Works based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.

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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.