Illinois Tool Valuation
| ITW Stock | USD 251.76 1.12 0.45% |
At this time, the firm appears to be fairly valued. Illinois Tool Works retains a regular Real Value of $246.89 per share. The prevalent price of the firm is $251.76. Our model calculates the value of Illinois Tool Works from evaluating the firm fundamentals such as Current Valuation of 82.2 B, return on asset of 0.16, and Return On Equity of 0.97 as well as inspecting its technical indicators and probability of bankruptcy. In general, most investors encourage buying undervalued assets and disposing overvalued assets since, at some point, asset prices and their ongoing real values will come together. Key fundamental drivers impacting Illinois Tool's valuation include:
Price Book 25.1444 | Enterprise Value 82.2 B | Enterprise Value Ebitda 18.5192 | Price Sales 4.702 | Forward PE 24.8139 |
Fairly Valued
Today
Please note that Illinois Tool's price fluctuation is very steady at this time. Calculation of the real value of Illinois Tool Works is based on 3 months time horizon. Increasing Illinois Tool's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Illinois Tool Works is useful when determining the fair value of the Illinois stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Illinois Tool. Since Illinois Tool is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Illinois Stock. However, Illinois Tool's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 251.76 | Real 246.89 | Target 239.07 | Hype 250.48 | Naive 247.42 |
The real value of Illinois Stock, also known as its intrinsic value, is the underlying worth of Illinois Tool Works Company, which is reflected in its stock price. It is based on Illinois Tool's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Illinois Tool's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Illinois Tool's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Illinois Tool Works helps investors to forecast how Illinois stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Illinois Tool more accurately as focusing exclusively on Illinois Tool's fundamentals will not take into account other important factors: Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Illinois Tool's intrinsic value based on its ongoing forecasts of Illinois Tool's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Illinois Tool's closest peers. When choosing an evaluation method for Illinois Tool Works, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.
Illinois Tool Investments |
|
Illinois Valuation Trend
Knowing Illinois Tool's actual value is paramount for traders to make sound investment determinations. Illinois Tool's real value is not only important for the investor to make better decisions but also for a more accurate overall view of Illinois Tool's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Illinois Tool's enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.
Illinois Market Cap
Illinois Tool Works is currently regarded as number one stock in market capitalization category among related companies. Market capitalization of Industrials industry is currently estimated at about 228.14 Billion. Illinois Tool totals roughly 74.88 Billion in market capitalization claiming about 33% of equities under Industrials industry.Illinois Tool Valuation Ratios as Compared to Competition
Comparative valuation techniques use various fundamental indicators to help in determining Illinois Tool's current stock value. Our valuation model uses many indicators to compare Illinois Tool value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Illinois Tool competition to find correlations between indicators driving Illinois Tool's intrinsic value. More Info.Illinois Tool Works is rated second overall in price to earning category among related companies. It is currently regarded as number one stock in price to book category among related companies fabricating about 0.96 of Price To Book per Price To Earning. The ratio of Price To Earning to Price To Book for Illinois Tool Works is roughly 1.04 . Price To Book Ratio is likely to climb to 27.63 in 2024. Comparative valuation analysis is a catch-all model that can be used if you cannot value Illinois Tool by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Illinois Tool's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Illinois Tool's earnings, one of the primary drivers of an investment's value.Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Illinois Tool's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Illinois Tool and how it compares across the competition.
About Illinois Tool Valuation
The stock valuation mechanism determines the current worth of Illinois Tool Works on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Illinois Tool Works. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Illinois Tool Works based exclusively on its fundamental and basic technical indicators. By analyzing Illinois Tool's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Illinois Tool's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Illinois Tool. We calculate exposure to Illinois Tool's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Illinois Tool's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 6.8 B | 4.1 B | |
| Pretax Profit Margin | 0.24 | 0.13 | |
| Operating Profit Margin | 0.25 | 0.14 | |
| Net Profit Margin | 0.18 | 0.19 | |
| Gross Profit Margin | 0.42 | 0.30 |
Illinois Tool Quarterly Retained Earnings |
|
8 Steps to conduct Illinois Tool's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Illinois Tool's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Illinois Tool's valuation analysis, follow these 8 steps:- Gather financial information: Obtain Illinois Tool's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Illinois Tool's revenue streams: Identify Illinois Tool's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Illinois Tool's industry and market trends, including the size of the market, growth rate, and competition.
- Establish Illinois Tool's growth potential: Evaluate Illinois Tool's management, business model, and growth potential.
- Determine Illinois Tool's financial performance: Analyze its financial statements to assess its historical performance and future potential.
- Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
- Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Illinois Tool's estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
A single share of Illinois Tool represents a small ownership stake in the entity. As a stockholder of Illinois, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
Illinois Tool Dividends Analysis For Valuation
At this time, Illinois Tool's Dividends Paid is fairly stable compared to the past year. Dividend Payout Ratio is likely to climb to 0.57 in 2024, whereas Dividend Yield is likely to drop 0.01 in 2024. . At this time, Illinois Tool's Retained Earnings are fairly stable compared to the past year. Earnings Yield is likely to climb to 0.06 in 2024, whereas Retained Earnings Total Equity is likely to drop slightly above 18.7 B in 2024.
| Last Reported | Projected for Next Year | ||
| Dividends Paid | 1.6 B | 1.7 B | |
| Dividend Yield | 0.02 | 0.01 | |
| Dividend Payout Ratio | 0.55 | 0.57 | |
| Dividend Paid And Capex Coverage Ratio | 3.05 | 2.90 |
There are various types of dividends Illinois Tool can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Illinois shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Illinois Tool Works directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Illinois pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Illinois Tool by the value of the dividends paid out.
Illinois Tool Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Illinois Tool does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 303.6 M | |
| Quarterly Earnings Growth Y O Y | -0.193 | |
| Forward Price Earnings | 24.8139 |
Illinois Tool Current Valuation Indicators
Valuation refers to the process of determining the present value of Illinois Tool Works and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Illinois we look at many different elements of the entity such as Illinois's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Illinois Tool's valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Illinois Tool's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Illinois Tool, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Illinois Tool's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Illinois Tool's worth.When determining whether Illinois Tool Works is a strong investment it is important to analyze Illinois Tool's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Illinois Tool's future performance. For an informed investment choice regarding Illinois Stock, refer to the following important reports: Check out Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in Illinois Tool Works. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in estimate. You can also try the Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Complementary Tools for Illinois Stock analysis
When running Illinois Tool's price analysis, check to measure Illinois Tool's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Illinois Tool is operating at the current time. Most of Illinois Tool's value examination focuses on studying past and present price action to predict the probability of Illinois Tool's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Illinois Tool's price. Additionally, you may evaluate how the addition of Illinois Tool to your portfolios can decrease your overall portfolio volatility.
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |
Is Illinois Tool's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Illinois Tool. If investors know Illinois will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Illinois Tool listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.19) | Dividend Share 5.42 | Earnings Share 9.75 | Revenue Per Share 53.229 | Quarterly Revenue Growth 0.003 |
The market value of Illinois Tool Works is measured differently than its book value, which is the value of Illinois that is recorded on the company's balance sheet. Investors also form their own opinion of Illinois Tool's value that differs from its market value or its book value, called intrinsic value, which is Illinois Tool's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Illinois Tool's market value can be influenced by many factors that don't directly affect Illinois Tool's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Illinois Tool's value and its price as these two are different measures arrived at by different means. Investors typically determine if Illinois Tool is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Illinois Tool's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.