Illinois Tool Works Inc. (ITW) fair value analysis

S&P 500 · Updated 2026-09-07

Illinois Tool Works Inc. is a diversified manufacturer that produces engineered fasteners and components, fluids, polymers, and equipment for welding, testing, and other industrial applications. The company operates manufacturing facilities and sales offices across North America, Europe, Asia Pacific, and other international markets.

Forward Fair Value verdict

Fairly valued

Based on TickrTrends' weekly Forward Fair Value model, ITW is trading at within about 10% of estimated fair value.

ITW currently ranks #52 of 107 Industrials stocks by discount to Forward Fair Value. It has screened as Fairly valued for 3 consecutive weekly runs.

Last price: $270.12
Sector: Industrials
12-month range: $243.13–$291.17

Derived indicators

Coarse bands from TickrTrends' weekly models; exact figures are part of the full report.

Quality grade: C
Leverage: High
Margin trend: Stable
Revenue growth: Modest
RSI zone: Oversold
52-week position: The upper-middle quarter of its range
DCF cross-check: Overvalued

What our data shows for ITW

Our model validated 17 trailing price-to-earnings windows for ITW, built from quarterly earnings records.
Shares are trading in the middle of their 12-month price range of $243.13–$291.17.
The 14-day relative strength index sits at an oversold 22.

The exact numbers are one step away

The precise Forward Fair Value dollar figure for ITW
Exact discount / premium to today's price
The normalized historical P/E behind the estimate, and how many quarters support it
Forward EPS input and fiscal-year basis
Screeners and rankings across the full S&P 500 and Nasdaq universes

See the exact fair value →

How Forward Fair Value works

TickrTrends computes a Forward Fair Value for every covered stock each week: a conservatively normalized historical price-to-earnings multiple is applied to the analyst-consensus earnings estimate for the next full fiscal year. Every input window is validated for continuity and every result is screened for plausibility before publication.

Recent ITW news

TickrTrends' derived news-sentiment signal for ITW is currently leaning negative, computed from recent coverage.

Is Illinois Tool Works Stock Underperforming the Nasdaq? (finance.yahoo.com, 2026-09-04)
TickrTrends take: Illinois Tool Works operates in the Industrials sector and is currently assessed as fairly valued according to TickrTrends analysis. Questions about whether the stock is underperforming relative to the Nasdaq warrant attention to whether any valuation gap has widened or narrowed, as this could signal shifting market sentiment relative to the company's fundamental worth. Investors focused on valuation should monitor whether the fairly valued designation remains consistent or shifts in response to relative performance trends, as this may indicate changing expectations for the company's future earnings or growth prospects compared to the broader market.
ITW DCF Analysis: Intrinsic Value $157 vs Price $270 (gurufocus.com, 2026-09-02)
TickrTrends take: Illinois Tool Works is trading at 270 dollars per share, which is substantially above the 157 dollar intrinsic value indicated by discounted cash flow analysis. TickrTrends currently rates the stock as fairly valued despite this significant gap between the DCF-derived valuation and market price, suggesting the market may be pricing in factors beyond traditional cash flow projections. Investors focused on valuation metrics should monitor whether ITW's operational performance or market conditions narrow the gap between its current trading price and the DCF estimate.

What people are saying

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TickrTrends weekly updates

2026-09-07 — No material change this week: the verdict, bands and grades all held steady.
2026-09-06 — ITW's relative strength index moved into oversold territory this week, shifting from a neutral zone reading in the prior week. The stock remains fairly valued according to current valuation metrics. This oversold RSI reading suggests weakened near-term momentum for the industrial company.
2026-08-31 — TickrTrends initiated weekly Forward Fair Value coverage of this stock.

Frequently asked questions

Is ITW stock undervalued?

Based on TickrTrends' Forward Fair Value model (updated 2026-09-07), ITW is trading at within about 10% of estimated fair value and screens as fairly valued. The exact fair value and discount are available to subscribers.

What is ITW's TickrTrends verdict?

ITW's current verdict is Fairly valued, refreshed with every weekly Forward Fair Value run.

How does ITW compare to other Industrials stocks?

ITW ranks #52 of 107 Industrials stocks in TickrTrends' coverage when sorted by discount to Forward Fair Value.

Is ITW overbought or oversold?

ITW's 14-day RSI is in the oversold zone on TickrTrends' latest weekly data.

All Industrials fair-value coverage →

Head-to-head comparisons

ITW vs CHRW · ITW vs FELE · ITW vs GE · ITW vs IEX · ITW vs LMT