GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Illinois Tool Works Inc (NYSE:ITW) » Definitions » PEG Ratio

Illinois Tool Works (Illinois Tool Works) PEG Ratio

: 5.33 (As of Today)
View and export this data going back to 1973. Start your Free Trial
PE Ratio without NRI / 5-Year EBITDA Growth Rate*

PEG Ratio is defined as the PE Ratio without NRI divided by the growth ratio. The growth rate we use is the 5-Year EBITDA growth rate. As of today, Illinois Tool Works's PE Ratio without NRI is 25.57. Illinois Tool Works's 5-Year EBITDA growth rate is 4.80%. Therefore, Illinois Tool Works's PEG Ratio for today is 5.33.

* The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.


The historical rank and industry rank for Illinois Tool Works's PEG Ratio or its related term are showing as below:

ITW' s PEG Ratio Range Over the Past 10 Years
Min: 1.31   Med: 2.76   Max: 26.6
Current: 5.33


During the past 13 years, Illinois Tool Works's highest PEG Ratio was 26.60. The lowest was 1.31. And the median was 2.76.


ITW's PEG Ratio is ranked worse than
81.65% of 1275 companies
in the Industrial Products industry
Industry Median: 1.72 vs ITW: 5.33

Peter Lynch thinks a company with a P/E ratio equal to its growth rate is fairly valued.


Illinois Tool Works PEG Ratio Historical Data

The historical data trend for Illinois Tool Works's PEG Ratio can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Illinois Tool Works Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
PEG Ratio
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.87 8.25 19.99 13.19 4.80

Illinois Tool Works Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
PEG Ratio Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 13.19 9.86 7.25 4.98 4.80

Competitive Comparison

For the Specialty Industrial Machinery subindustry, Illinois Tool Works's PEG Ratio, along with its competitors' market caps and PEG Ratio data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Illinois Tool Works PEG Ratio Distribution

For the Industrial Products industry and Industrials sector, Illinois Tool Works's PEG Ratio distribution charts can be found below:

* The bar in red indicates where Illinois Tool Works's PEG Ratio falls into.



Illinois Tool Works PEG Ratio Calculation

PEG Ratio is defined as the PE Ratio without NRI divided by the growth ratio. The ratio we use is the 5-Year EBITDA growth rate.

Illinois Tool Works's PEG Ratio for today is calculated as

PEG Ratio=PE Ratio without NRI/5-Year EBITDA Growth Rate*
=25.569018404908/4.80
=5.33

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Note: The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.


Illinois Tool Works  (NYSE:ITW) PEG Ratio Explanation

To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the P/E ratio divided by the growth ratio. He thinks a company with a P/E ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a P/E of 20, instead of a company growing 10% a year with a P/E of 10.


Illinois Tool Works PEG Ratio Related Terms

Thank you for viewing the detailed overview of Illinois Tool Works's PEG Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


Illinois Tool Works (Illinois Tool Works) Business Description

Traded in Other Exchanges
Address
155 Harlem Avenue, Glenview, IL, USA, 60025
Illinois Tool Works is a diversified global manufacturer that produces specialized industrial equipment, consumables, and related services. The firm operates 87 global divisions through seven distinct operating segments: automotive OEM, construction products, food equipment, specialty products, test/measurement and electronics, polymers and fluids, and welding. About half of its revenue comes from its operations in North America, with the remainder originating from international markets. ITW takes a bottom-up and decentralized approach to portfolio management, with the exception that each segment must apply its 80/20 operating process modeled on the Pareto principle.
Executives
Smith David Byron Jr director 155 HARLEM AVE., GLENVIEW IL 60025
Randall J Scheuneman officer: VP & Chief Accounting Officer 155 HARLEM AVE., GLENVIEW IL 60025
Christopher A O'herlihy officer: Executive Vice President 155 HARLEM AVE., GLENVIEW IL 60025
Ernest Scott Santi director, officer: President & CEO ILLINOIS TOOL WORKS INC., 155 HARLEM AVE., GLENVIEW IL 60025
Michael M Larsen officer: SVP & CFO ILLINOIS TOOL WORKS INC., 155 HARLEM AVE., GLENVIEW IL 60025
Kelly J Grier director 155 HARLEM AVE., GLENVIEW IL 60025
Lei Zhang Schlitz officer: Executive Vice President 5757 N. GREENBAY AVENUE, GLENDALE WI 53129
Patricia A. Hartzell officer: Executive Vice President 155 HARLEM AVE., GLENVIEW IL 60025
Javier Gracia Carbonell officer: Executive Vice President 155 HARLEM AVE., GLENVIEW IL 60025
Mary Katherine Lawler officer: SVP & Chief HR Officer ILLINOIS TOOL WORKS INC., 155 HARLEM AVE, GLENVIEW IL 60025
Jay L Henderson director 50 SOUTH LASALLE ST, CHICAGO IL 60603
Jennifer Kaplan Schott officer: SVP, General Counsel & Secy. 155 HARLEM AVE., GLENVIEW IL 60025
Darrell L Ford director 55 GLENLAKE PARKWAY, NE, ATLANTA GA 30328
Finch Norman D. Jr. officer: Sr. VP, General Counsel & Secy C/O ILLINOIS TOOL WORKS INC., 155 HARLEM AVE., GLENVIEW IL 60025
Michael R. Zimmerman officer: Executive Vice President 155 HARLEM AVE., GLENVIEW IL 60025

Illinois Tool Works (Illinois Tool Works) Headlines