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Illinois Tool WorksFRA:ILT +1.64%84 Debt-to-EBITDA is 2.01 as of Mar. 2026, which is 1% above its 10-year median of 1.99. GuruFocus rates FRA:ILT with a GF Score™ of 84/100 and a GF Value™ of €239.23 (Fairly Valued). The stock has 4 warning signs investors should review. Among 2,330 Industrial Products companies, Illinois Tool Works ranks worse than 52.96% on this metric.
Debt-to-EBITDA measures a company's ability to pay off its debt.
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
The historical rank and industry rank for Illinois Tool Works's Debt-to-EBITDA or its related term are showing as below:
FRA:ILT'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: 1.58 Med: 1.99 Max: 2.49
Current: 1.93
During the past 13 years, the highest Debt-to-EBITDA Ratio of Illinois Tool Works was 2.49. The lowest was 1.58. And the median was 1.99.
FRA:ILT's Debt-to-EBITDA is ranked worse than 52.96% of 2330
companies
in the Industrial Products industry
Industry Median: 1.7
vs FRA:ILT: 1.93
Illinois Tool Works (FRA:ILT) Debt-to-EBITDA Explanation
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.
According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
Illinois Tool Works Debt-to-EBITDA Related Terms
Illinois Tool Works Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for Illinois Tool Works's Debt-to-EBITDA 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.
FRA:ILT vs EMR, CMI, AME: Debt-to-EBITDA Comparison
For the Specialty Industrial Machinery subindustry, Illinois Tool Works's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA 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 Debt-to-EBITDA vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Illinois Tool Works's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Illinois Tool Works's Debt-to-EBITDA falls into.
* 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.
In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data,
the EBITDA data used here is four times the quarterly (Mar. 2026) EBITDA data.
Illinois Tool Works (FRA:ILT) has a Debt-to-EBITDA of 2.01 as of Mar. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Illinois Tool Works. This is near median its historical median of 1.99. Over the past decade, Illinois Tool Works' Debt-to-EBITDA has ranged from 1.58 to 2.49. According to the industry distribution chart, Illinois Tool Works ranks #1234 out of 2330 companies in the Industrial Products industry, placing it in the top 53%.
Is Illinois Tool Works' Debt-to-EBITDA too high?
Illinois Tool Works' current Debt-to-EBITDA of 2.01 is near median its 10-year median of 1.99. Over the past 10 years, this metric has ranged from a low of 1.58 to a high of 2.49. The Industrial Products industry median Debt-to-EBITDA is 1.70. Illinois Tool Works' value of 2.01 is 18.2% above this industry median. Based on the distribution chart, Illinois Tool Works ranks #1234 out of 2330 companies in the Industrial Products industry, which is below the industry midpoint. Overall, Illinois Tool Works has a GF Score™ of 84/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Illinois Tool Works' Debt-to-EBITDA compare to EMR and CMI?
According to the Industrial Products industry distribution chart, Illinois Tool Works ranks #1234 out of 2330 companies for Debt-to-EBITDA. This places Illinois Tool Works in the lower half of its industry. The industry median Debt-to-EBITDA is 1.70. Illinois Tool Works' value of 2.01 is 18.2% above this benchmark. Historically, Illinois Tool Works' own Debt-to-EBITDA has ranged from 1.58 to 2.49 over the past decade. While the company's 10-year median is 1.99 vs. the industry median of 1.70, Illinois Tool Works has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-EBITDA for an Industrial Products company?
The median Debt-to-EBITDA among Industrial Products companies is 1.70, based on 2,330 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Illinois Tool Works's current Debt-to-EBITDA of 2.01 is 18.2% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Illinois Tool Works. For the Industrial Products industry, the median Debt-to-EBITDA is 1.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Illinois Tool Works's current Debt-to-EBITDA is 2.01, which is near median its own 10-year median of 1.99. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Illinois Tool Works stock overvalued right now?
Based on GuruFocus' analysis, Illinois Tool Works (FRA:ILT) is currently considered Fairly Valued. The stock's GF Value™ is €239.23, compared to a current price of €247.70 — trading 3.5% above its estimated fair value. The current Debt-to-EBITDA is 2.01, which is near median its 10-year median of 1.99 and 18.2% above the Industrial Products industry median of 1.70. Illinois Tool Works' overall GF Score™ is 84/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For Illinois Tool Works (FRA:ILT), the current Debt-to-EBITDA is 2.01 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Illinois Tool Works (FRA:ILT) Overvalued in 2026?
Based on GuruFocus' analysis, Illinois Tool Works stock appears to be overvalued.
The current stock price of €247.70 is trading 3.5% above its estimated GF Value™ of €239.23.
GuruFocus considers Illinois Tool Works to be Fairly Valued.
Key valuation signals for FRA:ILT:
Debt-to-EBITDA: 2.01 (near median its 10-year median of 1.99)
GF Value™: €239.23 vs. price of €247.70 (3.5% above fair value)
Industry Position: 18.2% above the Industrial Products median (#1234 of 2330)
No single metric tells the full story. See the FRA:ILT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Founded in 1912, Illinois Tool Works has become a diversified industrial manufacturer through acquisitions and innovations that follow customer needs. ITW operates through seven business segments, with no segment representing more than one-fifth of revenue. ITW's automotive OEM segment sells vehicle components; its food equipment segment sells commercial kitchen appliances; its test and measurement and electronics segment sells inspection and analysis equipment; its welding segment sells welding equipment and consumables; its polymers and fluids segment sells industrial and consumer adhesives, solvents, and coatings; its construction products segment sells building fasteners and tools; and its specialty products segment sells medical, packaging, HVAC, and airport ground equipment.
84GF Score
Get the complete analysis for FRA:ILT
Debt-to-EBITDA is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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