Illinois Tool Works Inc (ITW) is overvalued and Rockwell Automation Inc (ROK) is overvalued.
Both trade above our estimate of their intrinsic value. ROK is the closer of the two: -69%, 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 11.6% (average of 3 methods) values the shares at $252.94; the price of $427.19 is 69% above that value, and 68% of that value comes from beyond year five.
Leak Score 65/100 on 10 of 12 signals
| Metric | ITW | ROK |
|---|---|---|
| Verdict | Overvalued | Overvalued |
| Price | $270.47 | $427.19 |
| Intrinsic value | $133.46 | $252.94 |
| Margin of safety | -103% | -69% |
| Leak Score | 62/100 (10/12) | 65/100 (10/12) |
| Market cap | $77.0B | $47.4B |
| Revenue growth, 5 years | 5.0% | 5.7% |
| Operating margin | 26.5% | 14.4% |
| Net margin | 19.4% | 13.4% |
| Return on equity | 104.7% | 34.5% |
| Debt to equity | 3.35 | 1.03 |
| P/E | 24.5x | 40.0x |
| Forward P/E | 21.9x | 28.8x |
| P/B | 26.6x | 13.6x |
| Dividend yield | 2.4% | 1.3% |