Question 1

What is Illinois Tool Works's EV/EBITDA ratio?

Accepted Answer

Illinois Tool Works (ITW) EV/EBITDA ratio is 18.8× as of July 22, 2026. The ratio is calculated by dividing enterprise value by trailing twelve-month EBITDA, using USD-normalised financials (IAS 21 exchange-rate translation for non-USD reporters).

Question 2

How is the EV/EBITDA ratio calculated?

Accepted Answer

EV/EBITDA = Enterprise Value ÷ Trailing Twelve-Month (TTM) EBITDA, where Enterprise Value = Market Capitalisation + Total Debt − Cash & Short-Term Investments. All inputs are sourced from audited GAAP/IFRS filings and translated to USD using period-end exchange rates so the multiple is comparable across companies and currencies.

Question 3

What is the EV/EBITDA ratio?

Accepted Answer

The EV/EBITDA ratio (the enterprise multiple) compares enterprise value (EV) to trailing twelve-month (TTM) EBITDA. EV is calculated as market capitalisation + total debt − cash & short-term investments. Because EV/EBITDA is capital-structure-neutral and ignores non-cash depreciation and amortisation, it is the standard multiple used in M&A and for cross-company or cross-border comparisons. Note: this calculation uses a simplified EV (minority interest and preferred equity excluded due to data availability), consistent with most public financial-data providers.

Question 4

What is a good EV/EBITDA ratio for Illinois Tool Works?

Accepted Answer

Mature, cash-generative businesses commonly trade in the 8–12× EV/EBITDA range; higher-growth, asset-light companies often trade at 15–25×+. EV/EBITDA is most useful for comparing companies with different capital structures (debt levels) or tax regimes. For Illinois Tool Works specifically, the relevant sector benchmark is the current sector median of 15.9×.

Question 5

Is Illinois Tool Works's EV/EBITDA ratio high or low?

Accepted Answer

Illinois Tool Works's EV/EBITDA ratio of 18.8× is above its own 5-year average of 17.5× and above the sector median of 15.9×. That places the current reading at the 81th percentile of its 10-year history. A higher multiple usually reflects stronger expected growth, lower perceived risk, or higher returns on capital; a lower multiple reflects the opposite.

Question 6

What is Illinois Tool Works's historical EV/EBITDA ratio range?

Accepted Answer

In the available daily series, Illinois Tool Works (ITW) EV/EBITDA ratio has ranged from a low of 3.3× in 2005 to a high of 22.7× in 2021. The 5-year average is 17.5× and the 5-year median is 17.4×.

Question 7

What was Illinois Tool Works's EV/EBITDA ratio in 2025?

Accepted Answer

Illinois Tool Works (ITW) EV/EBITDA ratio at the end of 2025 was 17.1×. Annual values reflect the multiple on the last trading day of each calendar year, using the trailing twelve-month EBITDA figure available at that date.

Question 8

Why does Illinois Tool Works's EV/EBITDA ratio change over time?

Accepted Answer

Valuation multiples move with two inputs: the numerator (enterprise value, which tracks share price plus net debt) and the denominator (EBITDA). Share-price changes — driven by interest rates, earnings expectations, risk appetite, and broader market sentiment — typically dominate short-term moves, while changes in the underlying fundamental drive the longer-term trend. As a result, the ratio can rise during stock-price rallies even if the business itself has not become more valuable, and fall during sell-offs even when fundamentals are improving.


2025	$71.5B	$4.65B	17.1×	+1.1×	Dec 31, 2025
2024	$74.7B	$5.11B	16.0×	-3.1×	Dec 31, 2024
2023	$78.6B	$4.48B	19.2×	+2.4×	Dec 31, 2023
2022	$67.6B	$4.46B	16.8×	-4.5×	Dec 31, 2022
2021	$77.4B	$3.94B	21.3×	+0.2×	Dec 31, 2021
2020	$64.6B	$3.34B	21.1×	+4.9×	Dec 31, 2020
2019	$57.7B	$3.94B	16.2×	+4.6×	Dec 31, 2019
2018	$41.8B	$4.11B	11.6×	-3.9×	Dec 31, 2018
2017	$56.8B	$3.99B	15.5×	+2.2×	Dec 31, 2017
2016	$42.7B	$3.59B	13.4×	+1.9×	Dec 31, 2016
2015	$33.7B	$3.31B	11.5×	-0.5×	Dec 31, 2015
2014	$36.6B	$3.35B	12.0×	-1.2×	Dec 31, 2014
2013	$36.8B	$3.01B	13.1×	+3.4×	Dec 31, 2013
2012	$28B	$3.1B	9.8×	+1.3×	Dec 31, 2012
2011	$22.6B	$3.01B	8.4×	-1.4×	Dec 31, 2011
2010	$26.5B	$2.86B	9.8×	-2.8×	Dec 31, 2010
2009	$24.1B	$2.05B	12.6×	+4.7×	Dec 31, 2009
2008	$17.5B	$2.58B	7.9×	-2.1×	Dec 31, 2008
2007	$28.2B	$2.97B	10.0×	-0.6×	Dec 31, 2007
2006	$25.8B	$2.53B	10.5×	+7.1×	Dec 31, 2006
2005	$24.7B	$7.52B	3.4×	-9.4×	Dec 31, 2005
2004	$27B	$2.15B	12.7×	-1.3×	Dec 31, 2004
2003	$25.9B	$1.79B	14.1×	+2.8×	Dec 31, 2003
2002	$19.8B	$1.81B	11.2×	—	Dec 31, 2002


Republic Services (RSG)	13.2×
Honeywell International (HON)	13.2×
Stanley Black & Decker (SWK)	13.2×
Copart (CPRT)	13.0×
Carlisle Companies (CSL)	12.8×
Equifax (EFX)	12.7×
Snap-on (SNA)	12.4×
Northrop Grumman (NOC)	12.2×
A. O. Smith (AOS)	12.1×
Brady (BRC)	12.1×
Canadian National Railway (CNI)	12.0×
Textron (TXT)	10.7×
Masco (MAS)	10.6×
Amentum Holdings (AMTM)	10.5×
FedEx (FDX)	10.5×
Andersons (ANDE)	10.2×
ABM Industries (ABM)	10.0×
McGrath RentCorp (MGRC)	9.3×
United Parcel Service (UPS)	9.1×
Delta Air Lines (DAL)	9.1×
Alamo Group (ALG)	8.4×
AGCO (AGCO)	7.7×
United Airlines Holdings (UAL)	7.3×
Matthews International (MATW)	7.0×
Upwork (UPWK)	6.9×

EV/EBITDA for Illinois Tool Works (ITW) 2002-2026

EV/EBITDA daily chart for Illinois Tool Works (ITW)

Historical EV/EBITDA for Illinois Tool Works (ITW) from 2002 to 2025

About EV/EBITDA at Illinois Tool Works (ITW)

Illinois Tool Works EV/EBITDA by Year

Illinois Tool Works EV/EBITDA 2025: 17.1×

Illinois Tool Works EV/EBITDA 2024: 16.0×

Illinois Tool Works EV/EBITDA 2023: 19.2×

Illinois Tool Works EV/EBITDA 2022: 16.8×

Illinois Tool Works EV/EBITDA 2021: 21.3×

Sector peers by EV/EBITDA — chart

Sector peers by EV/EBITDA — table

Frequently asked questions

Illinois Tool Works (ITW) Key Financials