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ITW (Illinois Tool Works) E10 : $9.18 (As of Mar. 2025)


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What is Illinois Tool Works E10?

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller P/E calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years.

Illinois Tool Works's adjusted earnings per share data for the three months ended in Mar. 2025 was $2.380. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $9.18 for the trailing ten years ended in Mar. 2025.

During the past 12 months, Illinois Tool Works's average E10 Growth Rate was 4.20% per year. During the past 3 years, the average E10 Growth Rate was 8.00% per year. During the past 5 years, the average E10 Growth Rate was 9.10% per year. During the past 10 years, the average E10 Growth Rate was 9.00% per year. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the E10 growth rate using E10 data.

During the past 13 years, the highest 3-Year average E10 Growth Rate of Illinois Tool Works was 36.20% per year. The lowest was 6.20% per year. And the median was 14.00% per year.

As of today (2025-07-13), Illinois Tool Works's current stock price is $259.70. Illinois Tool Works's E10 for the quarter that ended in Mar. 2025 was $9.18. Illinois Tool Works's Shiller PE Ratio of today is 28.29.

During the past 13 years, the highest Shiller PE Ratio of Illinois Tool Works was 37.58. The lowest was 19.16. And the median was 28.59.


Illinois Tool Works E10 Historical Data

The historical data trend for Illinois Tool Works's E10 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 E10 Chart

Illinois Tool Works Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
E10
Get a 7-Day Free Trial Premium Member Only Premium Member Only 6.33 7.13 7.79 8.53 8.99

Illinois Tool Works Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
E10 Get a 7-Day Free Trial 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 8.81 8.64 8.88 8.99 9.18

Competitive Comparison of Illinois Tool Works's E10

For the Specialty Industrial Machinery subindustry, Illinois Tool Works's Shiller PE Ratio, along with its competitors' market caps and Shiller PE 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's Shiller PE Ratio Distribution in the Industrial Products Industry

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

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


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Illinois Tool Works E10 Calculation

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller P/E calculation. When we calculate the today's Shiller P/E ratio of a stock, we use today's price divided by E10.

What is E10? How do we calculate E10?

E10 is the average of the inflation adjusted earnings of a company over the past 10 years. Let's use an example to explain.

If we want to calculate the E10 of Wal-Mart (WMT) for Dec. 31, 2010, we need to have the inflation data and the earnings from 2001 through 2010.

We adjusted the earnings of 2001 earnings data with the total inflation from 2001 through 2010 to the equivalent earnings in 2010. If the total inflation from 2001 to 2010 is 40%, and Wal-Mart earned $1 a share in 2001, then the 2001's equivalent earnings in 2010 is $1.4 a share. If Wal-Mart earns $1 again in 2002, and the total inflation from 2002 through 2010 is 35%, then the equivalent 2002 earnings in 2010 is $1.35. So on and so forth, you get the equivalent earnings of past 10 years. Then you add them together and divided the sum by 10 to get E10.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.

For example, Illinois Tool Works's adjusted earnings per share data for the three months ended in Mar. 2025 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Mar. 2025 (Change)*Current CPI (Mar. 2025)
=2.38/134.9266*134.9266
=2.380

Current CPI (Mar. 2025) = 134.9266.

Illinois Tool Works Quarterly Data

per share eps CPI Adj_EPS
201506 1.300 100.684 1.742
201509 1.390 100.392 1.868
201512 1.230 99.792 1.663
201603 1.290 100.470 1.732
201606 1.460 101.688 1.937
201609 1.500 101.861 1.987
201612 1.450 101.863 1.921
201703 1.540 102.862 2.020
201706 1.690 103.349 2.206
201709 1.850 104.136 2.397
201712 -0.220 104.011 -0.285
201803 1.900 105.290 2.435
201806 1.970 106.317 2.500
201809 1.900 106.507 2.407
201812 1.830 105.998 2.329
201903 1.810 107.251 2.277
201906 1.910 108.070 2.385
201909 2.040 108.329 2.541
201912 1.990 108.420 2.477
202003 1.770 108.902 2.193
202006 1.010 108.767 1.253
202009 1.830 109.815 2.248
202012 2.020 109.897 2.480
202103 2.110 111.754 2.548
202106 2.450 114.631 2.884
202109 2.020 115.734 2.355
202112 1.930 117.630 2.214
202203 2.110 121.301 2.347
202206 2.370 125.017 2.558
202209 2.350 125.227 2.532
202212 2.950 125.222 3.179
202303 2.330 127.348 2.469
202306 2.480 128.729 2.599
202309 2.550 129.860 2.650
202312 2.380 129.419 2.481
202403 2.730 131.776 2.795
202406 2.540 132.554 2.585
202409 3.910 133.029 3.966
202412 2.540 133.157 2.574
202503 2.380 134.927 2.380

Add all the adjusted EPS together and divide 10 will get our e10.


Illinois Tool Works  (NYSE:ITW) E10 Explanation

If a company grows much fast than inflation, E10 may underestimate the company's earnings power. Shiller PE Ratio can seem to be too high even the actual P/E is low.

For the Shiller P/E, the earnings of the past 10 years are inflation-adjusted and averaged. The result is used for P/E calculation. Since it looks at the average over the last 10 years, the Shiller P/E is also called PE10.

The Shiller P/E was first used by professor Robert Shiller to measure the valuation of the overall market. The same calculation is applied here to individual companies.

Illinois Tool Works's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=259.70/9.18
=28.29

* 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.

During the past 13 years, the highest Shiller P/E Ratio of Illinois Tool Works was 37.58. The lowest was 19.16. And the median was 28.59.


Be Aware

Shiller PE Ratio works better for cyclical companies. It gives you a better idea on the company's real earnings power.


Illinois Tool Works E10 Related Terms

Thank you for viewing the detailed overview of Illinois Tool Works's E10 provided by GuruFocus.com. Please click on the following links to see related term pages.


Illinois Tool Works Business Description

Address
155 Harlem Avenue, Glenview, IL, USA, 60025
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 & measurement and electronics segment sells inspection and analysis equipment; its welding segment sells welding equipment and consumables; its polymers & 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.
Executives
Christopher A O'herlihy officer: Executive Vice President 155 HARLEM AVE., GLENVIEW IL 60025
Michael M Larsen officer: SVP & CFO ILLINOIS TOOL WORKS INC., 155 HARLEM AVE., GLENVIEW IL 60025
Ernest Scott Santi director, officer: President & CEO ILLINOIS TOOL WORKS INC., 155 HARLEM AVE., GLENVIEW IL 60025
Smith David Byron Jr director 155 HARLEM AVE., GLENVIEW IL 60025
Mary Katherine Lawler officer: SVP & Chief HR Officer ILLINOIS TOOL WORKS INC., 155 HARLEM AVE, GLENVIEW IL 60025
Randall J Scheuneman officer: VP & Chief Accounting Officer 155 HARLEM AVE., GLENVIEW IL 60025
Sharon Szafranski officer: Executive Vice President 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
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