Illinois Tool Works Inc (ITW)

NYSE · Industrials · Specialty Industrial Machinery · USA

Illinois Tool Works Inc is a large cap company (market value between $10 billion and $200 billion) in the Specialty Industrial Machinery industry.

Illinois Tool Works is a global industrial manufacturer producing components, equipment, and consumables across automotive, food service, electronics, welding, adhesives, construction, and specialty markets. The company serves original equipment manufacturers, industrial customers, and end-users worldwide through its diversified product portfolio and integrated service offerings.

From its FY2025 annual report (Form 10-K)

Intrinsic value, DCF valuation, financial health and value investing analysis for the Illinois Tool Works Inc stock.

Our verdict on ITW

Overvalued: intrinsic value $157.48 per share, market price $278.55, margin of safety -76.9% (as of 2026-10-30).

Discounting its cash flows at 9.3% (average of 3 methods) values the shares at $157.48; the price of $278.55 is 77% above that value, and 74% of that value comes from beyond year five.

Leak Score: 58/100 on 12 of 12 signals (Weak Signal).

ETFs with the most weight in ITW

17 more funds hold it; the full list is part of the paid plan.

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30 more in this industry show a wider margin of safety.

Is ITW undervalued or overvalued?

ITW is overvalued (as of the 2026-10-30 close). Discounting its cash flows at 9.3% (average of 3 methods) values the shares at $157.48; the price of $278.55 is 77% above that value, and 74% of that value comes from beyond year five.

What is the intrinsic value of ITW?

$157.48 per share (as of the 2026-10-30 close), against a market price of $278.55. That is a margin of safety of -76.9%. The value is the average of the valuation methods that apply to this company, recomputed every night after the US close.

What growth is priced into ITW stock?

The price asks for more growth than the company has delivered. It needs the future to beat the past. Yearly sales growth the price needs: 18.6%. Yearly sales growth it has sustained: 1.1%.

What is Illinois Tool Works Inc's Leak Score?

58 out of 100, which we rate "Weak Signal", on 12 of 12 value investing signals.