Illinois Tool Works Inc.

XTRA:ILT Stock Report

Market Cap: €74.9b

Illinois Tool Works Valuation

Is ILT undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of ILT when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ILT (€254.9) is trading below our estimate of fair value (€284.68)

Significantly Below Fair Value: ILT is trading below fair value, but not by a significant amount.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ILT?

Other financial metrics that can be useful for relative valuation.

ILT key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue5.5x
Enterprise Value/EBITDA18.9x
PEG Ratio17.5x

Price to Earnings Ratio vs Peers

How does ILT's PE Ratio compare to its peers?

The above table shows the PE ratio for ILT vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average24.5x
RAA RATIONAL
42x6.9%€9.9b
G1A GEA Group
18.8x8.3%€7.6b
GIL DMG MORI
22xn/a€3.5b
KRN Krones
15.1x16.2%€3.8b
ILT Illinois Tool Works
23.2x1.3%€80.3b

Price-To-Earnings vs Peers: ILT is good value based on its Price-To-Earnings Ratio (23.2x) compared to the peer average (24.5x).

Price to Earnings Ratio vs Industry

How does ILT's PE Ratio compare vs other companies in the DE Machinery Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a12.0%
 n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a12.0%
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No more companies

Price-To-Earnings vs Industry: ILT is expensive based on its Price-To-Earnings Ratio (23.2x) compared to the German Machinery industry average (14.7x).

Price to Earnings Ratio vs Fair Ratio

What is ILT's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ILT PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio23.2x
Fair PE Ratio18.2x

Price-To-Earnings vs Fair Ratio: ILT is expensive based on its Price-To-Earnings Ratio (23.2x) compared to the estimated Fair Price-To-Earnings Ratio (18.2x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst ILT forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€254.90
€234.75
-7.9%
10.1%€285.57€196.79n/a19
Nov ’25€242.80
€236.09
-2.8%
10.0%€287.91€198.40n/a19
Oct ’25€235.70
€222.59
-5.6%
9.6%€258.37€183.39n/a18
Sep ’25€226.40
€223.05
-1.5%
8.4%€258.00€190.34n/a18
Aug ’25€224.40
€229.16
+2.1%
8.8%€271.51€194.86n/a18
Jul ’25€218.00
€232.84
+6.8%
9.2%€280.48€194.96n/a18
Jun ’25€220.10
€235.90
+7.2%
9.0%€283.10€196.78n/a18
May ’25€227.30
€235.92
+3.8%
9.0%€285.27€198.28n/a19
Apr ’25€247.70
€231.04
-6.7%
9.6%€280.40€185.08n/a19
Mar ’25€239.00
€226.55
-5.2%
9.0%€262.77€184.40n/a17
Feb ’25€232.70
€225.88
-2.9%
9.7%€263.14€177.27n/a17
Jan ’25€237.40
€216.12
-9.0%
9.5%€253.29€169.16n/a17
Dec ’24€225.40
€217.13
-3.7%
8.1%€243.33€173.14n/a18
Nov ’24€211.60
€220.46
+4.2%
8.3%€246.04€175.07€242.8018
Oct ’24€218.40
€230.26
+5.4%
9.3%€252.25€174.20€235.7019
Sep ’24€229.10
€227.07
-0.9%
9.2%€270.19€173.96€226.4020
Aug ’24€233.40
€220.66
-5.5%
9.5%€265.87€166.62€224.4020
Jul ’24€229.10
€219.67
-4.1%
9.7%€258.55€168.38€218.0020
Jun ’24€204.40
€222.18
+8.7%
10.0%€262.93€174.04€220.1020
May ’24€219.10
€215.89
-1.5%
10.3%€255.92€166.07€227.3019
Apr ’24€222.85
€224.96
+0.9%
11.2%€265.84€172.51€247.7019
Mar ’24€217.50
€224.96
+3.4%
11.2%€265.84€172.51€239.0019
Feb ’24€216.85
€198.74
-8.4%
11.4%€238.36€156.45€232.7019
Jan ’24€206.75
€197.70
-4.4%
11.3%€229.05€161.18€237.4019
Dec ’23€216.65
€194.66
-10.2%
10.8%€234.42€164.96€225.4018
Nov ’23€215.95
€201.55
-6.7%
10.2%€243.80€171.56€211.6018

Analyst Forecast: Target price is lower than the current share price.

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