Question 1

What is the PE ratio of ITW?

Accepted Answer

The trailing twelve-month PE ratio of ITW reflects how much investors pay per dollar of Illinois Tool Works Inc.'s earnings. This metric is most useful when compared to Industrial - Machinery peers and the company's own historical range.

Question 2

Is ITW overvalued based on PE ratio?

Accepted Answer

Whether ITW is overvalued depends on comparing its PE ratio to Industrial - Machinery peers, historical averages, and growth expectations. A PE above the sector average may indicate overvaluation, but high-growth companies often command premium multiples. Consider pairing PE analysis with a DCF model for a more complete picture.

Question 3

How do I value ITW stock using PE ratio?

Accepted Answer

To value Illinois Tool Works Inc. using PE: (1) Compare the current PE against the Industrial - Machinery median to assess relative pricing, (2) check the PEG ratio to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.

Question 4

What is the PEG ratio of ITW?

Accepted Answer

The PEG ratio divides the PE ratio by the expected earnings growth rate, providing a growth-adjusted valuation metric. A PEG below 1.0 may indicate undervaluation relative to growth, while above 2.0 may suggest overvaluation. PEG is most reliable for companies with stable, predictable earnings growth.

Question 5

Should I use PE ratio or DCF for ITW stock valuation?

Accepted Answer

PE ratio gives a quick relative read — how ITW is priced versus Industrial - Machinery peers. DCF provides an absolute value based on projected free cash flows. For ITW, with a strong ROE of 95.2%, both methods are worth using — PE for a market-relative check, DCF to stress-test whether fundamentals justify the price. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.

Illinois Tool Works Inc. (ITW) PE 估值

使用 PE 市盈率计算 ITW 公允价值

公司简介

Illinois Tool Works Inc. (ITW) PE 估值

使用 PE 市盈率计算 ITW 公允价值

公司简介

财务指标 — ITW PE 估值数据

常见问题

ITW 的市盈率是多少？

基于市盈率，ITW 被高估了吗？

如何使用市盈率对 ITW 进行估值？

ITW 的 PEG 比率是多少？

对 ITW 应该使用 PE 还是 DCF 估值？

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相关 PE 估值