Stock Analysis on Net

Illinois Tool Works Inc. (NYSE:ITW)

This company has been moved to the archive! The financial data has not been updated since February 11, 2022.

Common Stock Valuation Ratios (Price Multiples) 
Quarterly Data

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Historical Valuation Ratios (Summary)

Illinois Tool Works Inc., historical price multiples (quarterly data)

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Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017
Price to earnings (P/E) 25.29 26.23 26.78 33.82 30.18 29.41 27.18 20.43 23.76 21.96 19.90 20.45 18.46 22.85 24.87 27.33 33.07
Price to operating profit (P/OP) 19.59 20.28 20.60 24.75 22.08 21.96 20.48 15.30 17.61 15.89 14.18 14.57 13.20 12.02 12.84 13.73 15.97
Price to sales (P/S) 4.71 5.02 5.11 5.81 5.06 4.93 4.66 3.69 4.25 3.84 3.42 3.52 3.20 2.90 3.16 3.38 3.90
Price to book value (P/BV) 18.79 20.48 20.31 22.87 20.01 23.00 25.21 22.28 19.80 18.42 15.87 16.05 14.54 12.13 12.36 11.85 12.17 10.85 10.31 10.73

Based on: 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).

Valuation ratio Description The company
P/E ratio The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. Illinois Tool Works Inc. P/E ratio decreased from Q2 2021 to Q3 2021 and from Q3 2021 to Q4 2021.
P/OP ratio Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. Illinois Tool Works Inc. P/OP ratio decreased from Q2 2021 to Q3 2021 and from Q3 2021 to Q4 2021.
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. Illinois Tool Works Inc. P/S ratio decreased from Q2 2021 to Q3 2021 and from Q3 2021 to Q4 2021.
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company required rate of return and its actual rate of return. Illinois Tool Works Inc. P/BV ratio increased from Q2 2021 to Q3 2021 but then decreased significantly from Q3 2021 to Q4 2021.

Price to Earnings (P/E)

Illinois Tool Works Inc., historical P/E calculation (quarterly data)

Microsoft Excel
Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017
No. shares of common stock outstanding1 312,926,939 313,880,725 314,967,814 315,882,732 316,662,263 316,520,261 316,163,249 315,932,054 318,864,237 321,406,096 323,478,160 325,775,111 328,108,383 331,801,491 335,352,977 338,762,621 341,545,719 342,598,985 344,149,420 345,451,023
Selected Financial Data (US$)
Net income (in millions) 609 639 775 671 642 582 319 566 641 660 623 597 607 638 666 652 (76) 640 587 536
Earnings per share (EPS)2 8.61 8.69 8.48 7.01 6.66 6.66 6.91 7.88 7.91 7.74 7.62 7.70 7.81 5.67 5.61 5.32 4.94 0.00 0.00 0.00
Share price1, 3 217.72 227.87 226.98 237.06 200.98 195.88 187.95 161.01 187.86 169.94 151.67 157.41 144.21 129.47 139.55 145.47 163.36 159.06 142.88 139.60
Valuation Ratio
P/E ratio4 25.29 26.23 26.78 33.82 30.18 29.41 27.18 20.43 23.76 21.96 19.90 20.45 18.46 22.85 24.87 27.33 33.07
Benchmarks
P/E Ratio, Competitors5
Boeing Co.
Caterpillar Inc. 16.82 21.38 25.50 37.92 36.80 25.43 17.65 11.00 12.36
Eaton Corp. plc 27.77 33.08 34.43 40.32 37.46 31.97 25.14 15.70 18.06
GE Aerospace 19.67 19.55
Honeywell International Inc. 23.14 27.35 31.83 33.71 29.63 23.23 17.93 15.27 20.97
Lockheed Martin Corp. 16.70 15.11 14.27 15.48 13.44 15.79 16.26 17.09 19.87
RTX Corp. 36.79 40.28 60.91 12.02 24.41

Based on: 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).

1 Data adjusted for splits and stock dividends.

2 Q4 2021 Calculation
EPS = (Net incomeQ4 2021 + Net incomeQ3 2021 + Net incomeQ2 2021 + Net incomeQ1 2021) ÷ No. shares of common stock outstanding
= (609,000,000 + 639,000,000 + 775,000,000 + 671,000,000) ÷ 312,926,939 = 8.61

3 Closing price as at the filing date of Illinois Tool Works Inc. Quarterly or Annual Report.

4 Q4 2021 Calculation
P/E ratio = Share price ÷ EPS
= 217.72 ÷ 8.61 = 25.29

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/E ratio The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. Illinois Tool Works Inc. P/E ratio decreased from Q2 2021 to Q3 2021 and from Q3 2021 to Q4 2021.

Price to Operating Profit (P/OP)

Illinois Tool Works Inc., historical P/OP calculation (quarterly data)

Microsoft Excel
Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017
No. shares of common stock outstanding1 312,926,939 313,880,725 314,967,814 315,882,732 316,662,263 316,520,261 316,163,249 315,932,054 318,864,237 321,406,096 323,478,160 325,775,111 328,108,383 331,801,491 335,352,977 338,762,621 341,545,719 342,598,985 344,149,420 345,451,023
Selected Financial Data (US$)
Operating income (in millions) 834 845 893 905 883 789 449 761 824 868 871 839 860 889 932 903 850 961 874 809
Operating profit per share2 11.11 11.23 11.02 9.58 9.10 8.92 9.18 10.52 10.67 10.70 10.69 10.80 10.92 10.77 10.87 10.59 10.23 0.00 0.00 0.00
Share price1, 3 217.72 227.87 226.98 237.06 200.98 195.88 187.95 161.01 187.86 169.94 151.67 157.41 144.21 129.47 139.55 145.47 163.36 159.06 142.88 139.60
Valuation Ratio
P/OP ratio4 19.59 20.28 20.60 24.75 22.08 21.96 20.48 15.30 17.61 15.89 14.18 14.57 13.20 12.02 12.84 13.73 15.97
Benchmarks
P/OP Ratio, Competitors5
Boeing Co.
Caterpillar Inc. 15.87 16.57 18.76 26.25 24.23 16.79 12.06 7.79 9.08
Eaton Corp. plc 19.33 22.62 27.06 30.03 25.83 21.15 17.02 11.54 13.95
GE Aerospace 17.46 20.90 23.40 35.58 25.64 11.62 7.77 5.53 9.22
Honeywell International Inc. 20.68 23.54 25.98 28.28 24.86 20.25 17.03 13.96 18.81
Lockheed Martin Corp. 11.56 10.22 11.57 12.37 10.63 12.14 12.39 12.72 14.49
RTX Corp. 28.68 35.30 46.33 48.47 6.01 15.07

Based on: 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).

1 Data adjusted for splits and stock dividends.

2 Q4 2021 Calculation
Operating profit per share = (Operating incomeQ4 2021 + Operating incomeQ3 2021 + Operating incomeQ2 2021 + Operating incomeQ1 2021) ÷ No. shares of common stock outstanding
= (834,000,000 + 845,000,000 + 893,000,000 + 905,000,000) ÷ 312,926,939 = 11.11

3 Closing price as at the filing date of Illinois Tool Works Inc. Quarterly or Annual Report.

4 Q4 2021 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 217.72 ÷ 11.11 = 19.59

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/OP ratio Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. Illinois Tool Works Inc. P/OP ratio decreased from Q2 2021 to Q3 2021 and from Q3 2021 to Q4 2021.

Price to Sales (P/S)

Illinois Tool Works Inc., historical P/S calculation (quarterly data)

Microsoft Excel
Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017
No. shares of common stock outstanding1 312,926,939 313,880,725 314,967,814 315,882,732 316,662,263 316,520,261 316,163,249 315,932,054 318,864,237 321,406,096 323,478,160 325,775,111 328,108,383 331,801,491 335,352,977 338,762,621 341,545,719 342,598,985 344,149,420 345,451,023
Selected Financial Data (US$)
Operating revenue (in millions) 3,679 3,556 3,676 3,544 3,475 3,307 2,564 3,228 3,469 3,479 3,609 3,552 3,580 3,613 3,831 3,744 3,629 3,615 3,599 3,471
Sales per share2 46.19 45.40 44.46 40.81 39.71 39.71 40.30 43.63 44.25 44.24 44.37 44.74 45.01 44.66 44.19 43.06 41.91 0.00 0.00 0.00
Share price1, 3 217.72 227.87 226.98 237.06 200.98 195.88 187.95 161.01 187.86 169.94 151.67 157.41 144.21 129.47 139.55 145.47 163.36 159.06 142.88 139.60
Valuation Ratio
P/S ratio4 4.71 5.02 5.11 5.81 5.06 4.93 4.66 3.69 4.25 3.84 3.42 3.52 3.20 2.90 3.16 3.38 3.90
Benchmarks
P/S Ratio, Competitors5
Boeing Co. 1.87 1.93 2.20 2.44 1.96 1.38 1.41 1.11 2.34
Caterpillar Inc. 2.26 2.41 2.59 3.23 2.83 2.06 1.68 1.22 1.48
Eaton Corp. plc 3.03 3.51 3.39 3.25 2.96 2.41 2.02 1.60 1.87
GE Aerospace 1.50 1.64 1.60 1.68 1.41 0.84 0.71 0.67 1.18
Honeywell International Inc. 3.73 4.32 4.66 4.78 4.34 3.48 3.04 2.65 3.51
Lockheed Martin Corp. 1.57 1.38 1.53 1.63 1.40 1.61 1.67 1.75 2.07
RTX Corp. 2.21 2.09 2.14 2.07 1.95 1.44 1.41 0.71 1.75

Based on: 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).

1 Data adjusted for splits and stock dividends.

2 Q4 2021 Calculation
Sales per share = (Operating revenueQ4 2021 + Operating revenueQ3 2021 + Operating revenueQ2 2021 + Operating revenueQ1 2021) ÷ No. shares of common stock outstanding
= (3,679,000,000 + 3,556,000,000 + 3,676,000,000 + 3,544,000,000) ÷ 312,926,939 = 46.19

3 Closing price as at the filing date of Illinois Tool Works Inc. Quarterly or Annual Report.

4 Q4 2021 Calculation
P/S ratio = Share price ÷ Sales per share
= 217.72 ÷ 46.19 = 4.71

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. Illinois Tool Works Inc. P/S ratio decreased from Q2 2021 to Q3 2021 and from Q3 2021 to Q4 2021.

Price to Book Value (P/BV)

Illinois Tool Works Inc., historical P/BV calculation (quarterly data)

Microsoft Excel
Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017
No. shares of common stock outstanding1 312,926,939 313,880,725 314,967,814 315,882,732 316,662,263 316,520,261 316,163,249 315,932,054 318,864,237 321,406,096 323,478,160 325,775,111 328,108,383 331,801,491 335,352,977 338,762,621 341,545,719 342,598,985 344,149,420 345,451,023
Selected Financial Data (US$)
Stockholders’ equity attributable to ITW (in millions) 3,625 3,492 3,520 3,274 3,181 2,696 2,357 2,283 3,026 2,966 3,091 3,196 3,254 3,542 3,785 4,159 4,585 5,023 4,771 4,493
Book value per share (BVPS)2 11.58 11.13 11.18 10.36 10.05 8.52 7.46 7.23 9.49 9.23 9.56 9.81 9.92 10.68 11.29 12.28 13.42 14.66 13.86 13.01
Share price1, 3 217.72 227.87 226.98 237.06 200.98 195.88 187.95 161.01 187.86 169.94 151.67 157.41 144.21 129.47 139.55 145.47 163.36 159.06 142.88 139.60
Valuation Ratio
P/BV ratio4 18.79 20.48 20.31 22.87 20.01 23.00 25.21 22.28 19.80 18.42 15.87 16.05 14.54 12.13 12.36 11.85 12.17 10.85 10.31 10.73
Benchmarks
P/BV Ratio, Competitors5
Boeing Co. 1,689.96
Caterpillar Inc. 6.62 6.61 6.65 7.86 7.20 5.64 5.32 4.11 5.16 5.09 4.81 5.06
Eaton Corp. plc 3.63 4.28 4.21 3.84 3.54 3.06 2.73 2.34 2.48 2.32 2.14 2.16
GE Aerospace 2.64 3.15 3.43 3.53 2.89 1.95 1.71 1.63 3.66 3.16 2.55 2.52
Honeywell International Inc. 6.91 8.39 8.83 8.67 8.07 6.40 5.78 5.46 6.97 6.61 7.00 6.56
Lockheed Martin Corp. 9.62 9.50 15.63 17.05 15.27 20.84 27.96 30.96 39.60 26.86 35.45 37.84
RTX Corp. 1.95 1.87 1.87 1.75 1.53 1.26 1.35 1.25 3.24 3.05 2.87 3.05

Based on: 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).

1 Data adjusted for splits and stock dividends.

2 Q4 2021 Calculation
BVPS = Stockholders’ equity attributable to ITW ÷ No. shares of common stock outstanding
= 3,625,000,000 ÷ 312,926,939 = 11.58

3 Closing price as at the filing date of Illinois Tool Works Inc. Quarterly or Annual Report.

4 Q4 2021 Calculation
P/BV ratio = Share price ÷ BVPS
= 217.72 ÷ 11.58 = 18.79

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company required rate of return and its actual rate of return. Illinois Tool Works Inc. P/BV ratio increased from Q2 2021 to Q3 2021 but then decreased significantly from Q3 2021 to Q4 2021.