Illinois Tool Works Inc.
ITW is overvalued
NYSE · Industrials
FAIR PRICE
Updated daily
Model: DCF 50% · Relative 30% · Consensus 20%
$284.96
MARKET PRICE
$154.44
FAIR PRICE
$130.52
MARGIN
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Where does the market buy ITW?
1 investor has set their maximum buying price for ITW. The community zone unlocks at 10.
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BUYERS AT TODAY'S PRICE
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FPI RATING
Strong profitability and high-quality fundamentals, but expensive valuation relative to fundamentals.
Analytical data, not an investment recommendation. Updated daily.
How we calculate this ↗MARGIN OF SAFETY
A 20% margin of safety below fair value — the conservative entry level for risk-aware investors.
SAFETY MARGIN
20%
Below fair value
ENTRY LEVEL
$123.55
Fair price × 0.80
DISTANCE
56.6%
Price to entry level
At the current price of $284.96, ITW trades 56.6% above the conservative entry level of $123.55. This entry level represents a 20% margin of safety below the calculated fair price of $154.44 — a buffer that accounts for estimation uncertainty in the valuation model.
Margin of safety is a risk management concept, not an investment recommendation. The 20% threshold follows Benjamin Graham's value investing framework. Fair price and entry levels are model-based estimates updated daily. Learn more about Margin of Safety ↗
VALUATION HISTORY
SYNCING FEED ▌
P/E RATIO HISTORY
SYNCING FEED ▌
METHODOLOGY
How we calculate ITW's fair price
Illinois Tool Works Inc.'s fair price of $154.44 is derived from a blended model that combines DCF analysis (50%), relative valuation against Industrials peers using metrics like P/E and EV/EBITDA (30%), and analyst consensus (20%). At the current market price of $284.96, ITW trades 45.8% above its calculated fair value.
DCF MODEL · 50%
Discounted free cash flow analysis based on projected cash flows, discounted at a rate reflecting ITW's risk profile.
RELATIVE · 30%
Comparing ITW's valuation multiples against Industrials peers to determine if the stock is over or undervalued relative to its industry.
ANALYST · 20%
Aggregated analyst price targets for ITW, weighted by recency and analyst accuracy.
TRY IT YOURSELF
Want to test your own assumptions? Use our free calculators to estimate ITW's fair value with your own inputs.
ITW DCF Calculator
Pre-filled with ITW's real free cash flow and share count — set your own growth and discount rate to calculate intrinsic value.
Graham Number
Enter ITW's EPS and book value to see the maximum price Benjamin Graham would pay for this stock.
P/E Ratio Calculator
Check how much investors pay per dollar of ITW's earnings and compare it against sector benchmarks.
EV/EBITDA Calculator
Compare ITW against peers on a debt-adjusted basis using enterprise value and EBITDA.
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What is the fair price of ITW?+
Based on our blended model combining DCF analysis (50%), relative valuation against Industrials peers (30%), and analyst consensus (20%), the fair price for Illinois Tool Works Inc. is $154.44. At the current market price of $284.96, ITW trades 45.8% above its calculated fair value.
Is ITW overvalued or undervalued?+
Illinois Tool Works Inc. is currently overvalued based on our valuation model. The stock trades at $284.96, which is 45.8% above the fair price of $154.44. The P/E ratio of 25.6x is a key metric in the valuation.
What is the margin of safety for ITW?+
With a 20% margin of safety applied to the fair price of $154.44, the conservative entry level for ITW is $123.55. At the current market price of $284.96, the stock trades 56.6% above this entry level. Margin of safety is a risk management concept from Benjamin Graham's value investing framework, not an investment recommendation.
How often is ITW's fair price updated?+
We update fair price calculations for ITW daily after market close. The current fair price of $154.44 incorporates the latest market data and sector multiples.
What factors affect ITW's fair price calculation?+
ITW's fair price of $154.44 is derived from DCF analysis (50% weight), relative valuation against Industrials peers (30% weight), and analyst consensus (20% weight). Key metrics include P/E of 25.6x, ROE of 101.7%, and dividend yield of 2.27%.
Is ITW a good buy right now?+
At $284.96, ITW trades 45.8% above our fair value estimate of $154.44. The stock is currently overvalued. ROE stands at 101.7% (exceptional). Fair Price Index provides valuation data — always do your own research before investing.
Does ITW pay dividends?+
ITW has a dividend yield of 2.27%.
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Fair Price Index is for informational purposes only and does not constitute investment advice. Fair value calculations are model-based estimates and may not reflect actual market conditions. Always conduct your own research before making investment decisions.