Ticker League

Fair Value for Illinois Tool Works (ITW)

See growth priced into Illinois Tool Works (ITW): reverse DCF, implied rate vs history and analysts, FCF view. Free intrinsic value calculator for education.

Fair value (multi-method)

Four independent methods triangulate what ITW is worth. The headline is the Forward-DCF intrinsic value at a normalized growth rate; the margin of safety compares it to the current price.

Estimated fair value (Forward DCF)

$254.34

Near fair value
+0.64% vs current price $252.72

Method range

$25.91 $271.29

median $247.99

Methods disagree

Valuation methods

Each method’s implied fair value per share and its upside versus the current price. Missing methods (no analyst coverage, negative earnings, etc.) are shown as “—”.

  • Forward DCF$254.34
  • Exit multiple$241.64
  • Analyst target$271.29
  • Graham number$25.91

Stock price

$252.72

FCF / share (TTM)

$1.83

3Y FCF CAGR

6.7%

Fair value @ hist. growth

$34.87

This analysis is for informational purposes only and is not financial advice. Scenario prices and DCF-style figures depend on your assumptions and data from public filings and estimates. They are not forecasts of future returns.

Implied FCF growth

34.1%

per year over your projection horizon

Premium vs DCF

Margin of safety -624.7% vs hist-growth DCF

Historical 3Y CAGR

6.7%

Your model implies

34.1%

Analyst consensus is EPS-only — no comparable FCF / share estimate to show on this basis.

Model inputs

Move sliders to test how the reverse DCF reacts. Historical-growth markers show where the company has actually grown over the last cycle.

Discount rate (cost of equity proxy)9.8%
Terminal growth2.50%
Projection years10 yr
FCF growth per year (supplemental projection)7%
3Y CAGR 7%

Undiscounted FCF per share over 10 years at 7% annual growth.

Sensitivity — implied growth vs your assumptions

Each cell shows the per-share growth rate the market would need to justify the current price at that combination of discount rate (rows) and terminal growth (columns). Your selected inputs are highlighted.

Row axis: discount rate. Column axis: terminal growth.Terminal g →↓ Discount1.5%2.0%2.5%3.0%3.5%
7.8%30.2%29.2%28.2%27.1%25.8%
8.8%33.0%32.1%31.3%30.3%29.3%
9.8%35.6%34.8%34.1%33.3%32.4%
10.8%38.0%37.4%36.7%36.0%35.2%
11.8%40.3%39.8%39.1%38.5%37.8%
Color≤ historical CAGRModerate premiumHigh premium (≥ 15pp above hist)Your inputs

Historical multiples

Each bar is the trailing five-year range (low left, high right). Filled portion runs from low to today; the dot marks today; the small tick marks the five-year median. Low, median, and high are listed under each bar.

P/EToday23.5
5Y low21.6
Median23.5
5Y high28.9
P/SToday4.5
5Y low4.3
Median4.7
5Y high5.4
EV/EBITDAToday17.2
5Y low16.1
Median17.2
5Y high21.4

Net debt

$8.1B

Total debt − cash

Beta

1.05

Vs market benchmark

Frequently asked questions