What Is ITW Fair Value?
Illinois Tool Works (ITW) fair value estimate using multiple valuation models, updated daily.
As of October 14, 2026, Illinois Tool Works (ITW) has a composite fair value estimate of $120.20 based on four valuation models: DCF (41% weight), Graham Number (29% weight), PEG (29% weight), and DDM (0% weight). The current market price is $269.47, suggesting the stock is overvalued by 55.4%.
Data as of October 14, 2026 (today)
Composite Fair Value
Overvalued3 of 4 models$120.20
vs. current price of $269.47(-55.4%)
How Is ITW Fair Value Calculated?
Four independent models estimate what ITW is worth. Each uses different inputs and assumptions. The composite blends them by weight.
ITW Intrinsic Value
Forward-looking models based on future cash flows
DCF (Discounted Cash Flow)
41% weightEstimates how much cash the company will generate over the next 10 years, then calculates what all that future cash is worth in today's dollars. Includes a 15% safety cushion. Try the standalone DCF calculator →
$147.60
-45.2%Overvalued
Inputs used
DDM (Dividend Discount Model)
0% weightIf a company pays you dividends, this model asks: how much are all those future dividend payments worth today? Only works for stocks that pay dividends. Try the intrinsic value calculator →
N/A
This stock does not pay a dividend, so the DDM cannot be applied. The composite adjusts by redistributing this weight to the other models.
ITW Fair Value
Current fundamentals: earnings, assets, and growth rate
Graham Number (Value Investing)
29% weightCreated by legendary investor Benjamin Graham. It looks at two things: how much the company earns (EPS) and what its assets are worth (Book Value), then calculates the maximum price a careful investor should pay. Try the fair value calculator →
$51.15
-81.0%Overvalued
Inputs used
PEG (Price/Earnings to Growth)
29% weightChecks if you're paying a fair price for the company's growth. A fast-growing company deserves a higher price than a slow one. This model finds the right price based on how fast earnings are growing.
$114.43
-57.5%Overvalued
Inputs used
What If You Change the Assumptions?
Drag the sliders to test different scenarios. Tap the ? buttons to learn what each input means.
Your DCF Fair Value
Current price $269.47 is 45.2% above this estimate
View 10-year cash flow projections
| Year | Projected FCF (Free Cash Flow) | Present Value |
|---|---|---|
| Year 1 | $2.64B | $2.42B |
| Year 2 | $2.86B | $2.40B |
| Year 3 | $3.11B | $2.39B |
| Year 4 | $3.37B | $2.37B |
| Year 5 | $3.66B | $2.35B |
| Year 6 | $3.96B | $2.34B |
| Year 7 | $4.30B | $2.32B |
| Year 8 | $4.67B | $2.31B |
| Year 9 | $5.06B | $2.29B |
| Year 10 | $5.49B | $2.28B |
| Terminal Value | $84.01B | $34.84B |
What Are ITW's Key Financial Metrics?
Earnings & Growth
Current Price
$269.47
EPS (TTM)
$11.03
Forward P/E
21.8
Profit Margin
19.4%
Cash & Balance Sheet
Free Cash Flow
2.4B
EBITDA
4.8B
Book Value
$10.16
Total Debt
9.7B
What Do Analysts Say About ITW?
Low
$249.00
Average
$294.57
High
$326.00
Upside
+9.3%
ITW Fair Value FAQ
What is the fair value of ITW?
Based on our composite model (DCF 35%, Graham 25%, PEG 25%, DDM 15%), ITW's estimated fair value is $120.20. The stock is currently trading at $269.47, which makes it overvalued by our analysis.
How is ITW's fair value calculated?
We use four valuation methods: Discounted Cash Flow (DCF), Graham Number, PEG-based Fair Value, and Dividend Discount Model (for dividend-paying stocks). The composite score weights DCF at 35%, Graham and PEG at 25% each, and DDM at 15%. When a model can't be applied, its weight is redistributed proportionally.
Is ITW overvalued or undervalued?
Based on our analysis, ITW is overvalued. The current price of $269.47 is 55.4% above our estimated fair value of $120.20.
What do Wall Street analysts say about ITW?
14 analysts cover Illinois Tool Works with a consensus rating of "Hold." The average price target is $294.57, ranging from $249.00 to $326.00. This implies 9.3% upside from the current price.