Illinois Tool Works Inc (ITW) is overvalued and Parker-Hannifin Corp (PH) is overvalued.
Both trade above our estimate of their intrinsic value. PH is the closer of the two: -88%, against -103% for ITW.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 9.2% (average of 3 methods) values the shares at $133.46; the price of $270.47 is 103% above that value, and 75% of that value comes from beyond year five.
Leak Score 62/100 on 10 of 12 signals
Discounting its cash flows at 10.2% (average of 3 methods) values the shares at $514.00; the price of $964.85 is 88% above that value, and 72% of that value comes from beyond year five.
Leak Score 73/100 on 10 of 12 signals
| Metric | ITW | PH |
|---|---|---|
| Verdict | Overvalued | Overvalued |
| Price | $270.47 | $964.85 |
| Intrinsic value | $133.46 | $514.00 |
| Margin of safety | -103% | -88% |
| Leak Score | 62/100 (10/12) | 73/100 (10/12) |
| Market cap | $77.0B | $121.7B |
| Revenue growth, 5 years | 5.0% | 8.4% |
| Operating margin | 26.5% | 21.9% |
| Net margin | 19.4% | 17.0% |
| Return on equity | 104.7% | 25.1% |
| Debt to equity | 3.35 | 0.57 |
| P/E | 24.5x | 33.9x |
| Forward P/E | 21.9x | 24.9x |
| P/B | 26.6x | 7.9x |
| Dividend yield | 2.4% | 0.8% |