ILLINOIS TOOL WORKS INC (ITW)

General Industrial Machinery & Equipment

Latest Price

$268.16

TTM P/E

24.31

Normalized P/E

26.21

Div Yield

2.40%

Book Value

10.08

P/B Ratio

26.61

Valuation metrics

Norm. op. income: $3.8B (median of 7yr)

Tax rate: 22%

Discount rate: 10%

Growth assumption: zero (EPV is a no-growth value)

Earnings Power Value

$70.84

74% downside

Base FCF: $2.7B (median of recent 5yr)

Growth: -6%/yr (median YOY, capped at 25%)

Discount rate: 10%

Terminal growth: 3%

Projection horizon: 10 years

DCF Fair Value

$39.24

85% downside

EPS: $10.49

Target P/E: 26×

Formula: EPS × P/E

P/E Fair Value

$272.74

+2% upside

84.6% held by institutions

Institution	Shares	Value	Ownership %	Change	Filing Date
Briar Hall Management LLC	25.81M	$6.98B	9.06%	-24.3K	2026-06-30
BlackRock, Inc.	23.28M	$6.30B	8.17%	-94.4K	2026-06-30
STATE FARM MUTUAL AUTOMOBILE INSURANCE CO	21.03M	$5.69B	7.38%	--	2026-06-30
VANGUARD CAPITAL MANAGEMENT LLC	17.48M	$4.73B	6.14%	+56.0K	2026-06-30
STATE STREET CORP	12.79M	$3.48B	4.49%	+128.1K	2026-06-30
NORTHERN TRUST CORP	11.06M	$2.99B	3.88%	-140.2K	2026-06-30
GEODE CAPITAL MANAGEMENT, LLC	7.08M	$1.92B	2.49%	+25.0K	2026-06-30
VANGUARD PORTFOLIO MANAGEMENT LLC	6.94M	$1.88B	2.44%	+148.2K	2026-06-30
MORGAN STANLEY	4.90M	$1.32B	1.72%	-504.3K	2026-06-30
Capital Research Global Investors	4.88M	$1.32B	1.71%	+121.0K	2026-06-30