Illinois Tool Works Inc. provides industrial products and equipment in North America, Europe, the Middle East, Africa, the Asia Pacific, and South America. It operates through seven segments: Automotive OEM; Food Equipment; Test & Measurement and Electronics; Welding; Polymers & Fluids; Construction Products; and Specialty Products.
Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS. Shaded region = analyst consensus for the current and next fiscal year (14 analysts).
| Parameter | BaseValue |
|---|---|
Initial Cash Flow | |
| Growth Rate (Yr 1-5) | % |
| Growth Rate (Yr 6-10) | % |
| Terminal Growth Rate | % |
| Discount Rate | % |
Base Case $197.01 Implied EV: $64.55B |
What growth rate is the market pricing in at $279?
The market implies +12.6% Owner Earnings growth, above historical trends.
Standard FCF implies a demanding +16.4%, reflecting heavy growth investment.
Wide moat with strength across all dimensions. ROIC Consistency is the standout factor.
"Market is optimistic — be cautious and ensure you have a margin of safety"
Price appears to exceed estimated intrinsic value — limited margin of safety at current levels
