Question 1

What is Illinois Tool Works's P/E ratio?

Accepted Answer

Illinois Tool Works (ITW) P/E ratio is 25.3× as of July 22, 2026. The ratio is calculated by dividing market capitalisation by trailing twelve-month earnings (net income), using USD-normalised financials (IAS 21 exchange-rate translation for non-USD reporters).

Question 2

How is the P/E ratio calculated?

Accepted Answer

P/E = Share Price ÷ Trailing Twelve-Month (TTM) Diluted EPS, or equivalently Market Capitalisation ÷ TTM Net Income. 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 P/E ratio?

Accepted Answer

The price-to-earnings (P/E) ratio, also called the earnings multiple, measures how much investors pay per dollar of a company's trailing twelve-month (TTM) earnings. It is calculated as share price ÷ TTM diluted EPS (equivalent to market capitalisation ÷ TTM net income). A higher P/E implies the market is pricing in stronger future earnings growth or lower risk; a lower P/E can signal slower expected growth, higher risk, or potential undervaluation.

Question 4

What is a good P/E ratio for Illinois Tool Works?

Accepted Answer

There is no universal "good" P/E. As a rule of thumb, the S&P 500 has historically averaged a P/E in the mid-to-high teens; mature, slow-growth businesses commonly trade in the 10–18× range, while high-growth or asset-light companies often trade at 25–50×+. What matters is the comparison to sector peers and to the company's own historical range. For Illinois Tool Works specifically, the relevant sector benchmark is the current sector median of 27.8×.

Question 5

Is Illinois Tool Works's P/E ratio high or low?

Accepted Answer

Illinois Tool Works's P/E ratio of 25.3× is above its own 5-year average of 23.6× and below the sector median of 27.8×. That places the current reading at the 75th 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 P/E ratio range?

Accepted Answer

In the available daily series, Illinois Tool Works (ITW) P/E ratio has ranged from a low of 9.7× in 2012 to a high of 35.2× in 2002. The 5-year average is 23.6× and the 5-year median is 23.6×.

Question 7

What was Illinois Tool Works's P/E ratio in 2025?

Accepted Answer

Illinois Tool Works (ITW) P/E ratio at the end of 2025 was 23.3×. Annual values reflect the multiple on the last trading day of each calendar year, using the trailing twelve-month earnings figure available at that date.

Question 8

Why does Illinois Tool Works's P/E ratio change over time?

Accepted Answer

Valuation multiples move with two inputs: the numerator (market capitalisation, which tracks the share price) and the denominator (earnings). 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	$3.07B	23.3×	+1.9×	Dec 31, 2025
2024	$74.7B	$3.49B	21.4×	-5.2×	Dec 31, 2024
2023	$78.6B	$2.96B	26.6×	+4.3×	Dec 31, 2023
2022	$67.6B	$3.03B	22.3×	-6.5×	Dec 31, 2022
2021	$77.4B	$2.69B	28.7×	-1.9×	Dec 31, 2021
2020	$64.6B	$2.11B	30.6×	+7.7×	Dec 31, 2020
2019	$57.7B	$2.52B	22.9×	+6.6×	Dec 31, 2019
2018	$41.8B	$2.56B	16.3×	-17.4×	Dec 31, 2018
2017	$56.8B	$1.69B	33.7×	+12.7×	Dec 31, 2017
2016	$42.7B	$2.04B	21.0×	+3.2×	Dec 31, 2016
2015	$33.7B	$1.9B	17.8×	+5.3×	Dec 31, 2015
2014	$36.6B	$2.95B	12.4×	-9.5×	Dec 31, 2014
2013	$36.8B	$1.68B	21.9×	+12.2×	Dec 31, 2013
2012	$28B	$2.87B	9.7×	-1.2×	Dec 31, 2012
2011	$22.6B	$2.07B	10.9×	-6.1×	Dec 31, 2011
2010	$26.5B	$1.56B	17.0×	-8.4×	Dec 31, 2010
2009	$24.1B	$947M	25.4×	+13.9×	Dec 31, 2009
2008	$17.5B	$1.52B	11.5×	-3.4×	Dec 31, 2008
2007	$28.2B	$1.9B	14.9×	-0.2×	Dec 31, 2007
2006	$25.8B	$1.72B	15.0×	-1.5×	Dec 31, 2006
2005	$24.7B	$1.49B	16.5×	-3.6×	Dec 31, 2005
2004	$27B	$1.34B	20.2×	-5.1×	Dec 31, 2004
2003	$25.9B	$1.02B	25.3×	-2.5×	Dec 31, 2003
2002	$19.8B	$713M	27.8×	—	Dec 31, 2002


Pentair (PNR)	21.1×
Lennox International (LII)	20.6×
Copart (CPRT)	20.4×
Union Pacific (UNP)	19.9×
Allegion (ALLE)	19.7×
Alamo Group (ALG)	19.6×
Andersons (ANDE)	19.0×
Carlisle Companies (CSL)	18.8×
Snap-on (SNA)	18.5×
Brady (BRC)	18.5×
Canadian National Railway (CNI)	18.4×
FedEx (FDX)	18.4×
Pool (POOL)	18.1×
McGrath RentCorp (MGRC)	17.5×
Honeywell International (HON)	17.5×
A. O. Smith (AOS)	17.4×
Textron (TXT)	16.6×
Northrop Grumman (NOC)	16.1×
United Parcel Service (UPS)	15.9×
Delta Air Lines (DAL)	15.5×
ABM Industries (ABM)	15.2×
Masco (MAS)	14.6×
Upwork (UPWK)	12.9×
United Airlines Holdings (UAL)	12.7×
AGCO (AGCO)	10.9×

P/E Ratio for Illinois Tool Works (ITW) 2002-2026

P/E Ratio daily chart for Illinois Tool Works (ITW)

Historical P/E Ratio for Illinois Tool Works (ITW) from 2002 to 2025

About P/E Ratio at Illinois Tool Works (ITW)

Illinois Tool Works P/E Ratio by Year

Illinois Tool Works P/E Ratio 2025: 23.3×

Illinois Tool Works P/E Ratio 2024: 21.4×

Illinois Tool Works P/E Ratio 2023: 26.6×

Illinois Tool Works P/E Ratio 2022: 22.3×

Illinois Tool Works P/E Ratio 2021: 28.7×

Sector peers by P/E Ratio — chart

Sector peers by P/E Ratio — table

Frequently asked questions

Illinois Tool Works (ITW) Key Financials