ITW

Illinois Tool Works Inc.

Industrials · $78.8B market cap

Verdict

Share price

$262.92

close of Oct 3, 2026

Fair value

$215.79

Sticker Price

Payback Price

$86.31

buy price

Overpriced

ITW is Overpriced: at $262.92 it trades 22% above its fair value of $215.79. Its buy price (Payback Price) is $86.31, 67% below today's price. Business quality is limited: only 1 of 5 key numbers clears the 10% bar.

How we valued it

Dividend Discount Model. It has paid a dividend for 10+ years in a row, raised it most years, and yields over 2%. For a steady payer like this, the dividend is the best guide to value.

Business quality

1 of 5 clear the 10% bar. What are the Big Five?

Earnings per share growth4.0% a year✗
Equity per share growth-3.5% a year✗
Sales growth0.0% a year✗
Free cash flow growth2.7% a year✗
Return on invested capital25.4%✓

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Superinvestors

3 of the investors we track hold ITW. In Q1 2026, 1 trimmed. Who we track

Moves in Q1 2026

Trimmed: Mairs & Power Funds

Insider activity

Since Aug 7, 2026: no open-market purchases, 5 sales worth $12.0M and 5 other filings (stock awards, tax withholding and similar). Why purchases matter

Sales

Other filings

About Illinois Tool Works Inc.

Illinois Tool Works Inc. is a global enterprise specializing in the production and distribution of a wide array of industrial goods and specialized equipment. The company operates through seven distinct divisions: Automotive OEM; Food Equipment; Test & Measurement and Electronics; Welding; Polymers & Fluids; Construction Products; and Specialty Products. The Automotive OEM division supplies plastic and metal…

Industrial - Machinery

Fair value and Payback Price are estimates from the company's reported financials, not investment advice. Prices as of the close of Oct 3, 2026. How the Payback Price works