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Illinois Tool WorksFRA:ILT -0.80%84 Earnings Yield (Joel Greenblatt) % is 5.21% as of Mar. 2026, which is 3% below its 10-year median of 5.38. GuruFocus rates FRA:ILT with a GF Score™ of 84/100 and a GF Value™ of €225.00 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 3,084 Industrial Products companies, Illinois Tool Works ranks better than 57.98% on this metric.
Illinois Tool Works's Enterprise Value for the quarter that ended in Mar. 2026 was €71,845 Mil.
Illinois Tool Works's EBIT for the trailing twelve months (TTM) ended in Mar. 2026 was €3,802 Mil. Illinois Tool Works's Earnings Yield (Joel Greenblatt) for the quarter that ended in Mar. 2026 was 5.21%.
The historical rank and industry rank for Illinois Tool Works's Earnings Yield (Joel Greenblatt) % or its related term are showing as below:
FRA:ILT'
s Earnings Yield (Joel Greenblatt) % Range Over the Past 10 Years
Min: 3.72 Med: 5.38 Max: 7.67
Current: 4.65
During the past 13 years, the highest Earnings Yield (Joel Greenblatt) of Illinois Tool Works was 7.67%. The lowest was 3.72%. And the median was 5.38%.
FRA:ILT's Earnings Yield (Joel Greenblatt) % is ranked better than 57.98% of 3084
companies
in the Industrial Products industry
Industry Median: 3.535
vs FRA:ILT: 4.65
Joel Greenblatt's definition of earnings yield has the same problems the regular earnings yield does. It does not consider the growth of the company. It only looks at one-year's business operation. For cyclical companies, the earnings yield is usually highest at the peak of the business cycle. But these earnings are rarely sustainable.
A better indicator of the attractiveness of an investment which takes growth into account is the Forward Rate of Return (Yacktman) %. Illinois Tool Works's Forward Rate of Return (Yacktman) % for the quarter that ended in Mar. 2026 was 11.18%. The Forward Rate of Return uses the normalized Free Cash Flow of the past five years, and considers growth. The forward rate of return can be thought of as the return that investors buying the stock today can expect from it in the future.
Illinois Tool Works (FRA:ILT) Earnings Yield (Joel Greenblatt) % Explanation
Joel Greenblatt defines the earnings yield using the above equation because it more accurately reflects the company's profitability relative to its stock price. Items like interest payment and tax etc. are not directly related to the company's operational profitability.
Enterprise Value instead of market cap (share price) is used in the calculation because it is the real price stock and bond investors together pay for the company.
Be Aware
Joel Greenblatt's definition of earnings yield has the same problems the regular earnings yield does. It does not consider the growth of the company. It only looks at one-year's business operation. For cyclical companies, the earnings yield is usually highest at the peak of the business cycle. But these earnings are rarely sustainable.
Illinois Tool Works Earnings Yield (Joel Greenblatt) % Related Terms
Illinois Tool Works Earnings Yield (Joel Greenblatt) % Historical Data
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The historical data trend for Illinois Tool Works's Earnings Yield (Joel Greenblatt) % 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.
Illinois Tool Works Earnings Yield (Joel Greenblatt) % Chart
For the Specialty Industrial Machinery subindustry, Illinois Tool Works's Earnings Yield (Joel Greenblatt) %, along with its competitors' market caps and Earnings Yield (Joel Greenblatt) % 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 Earnings Yield (Joel Greenblatt) % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Illinois Tool Works's Earnings Yield (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Illinois Tool Works's Earnings Yield (Joel Greenblatt) % falls into.
Illinois Tool Works Earnings Yield (Joel Greenblatt) % Calculation
In his book, The Little That Beat the Market, hedge fund manager Joel Greenblatt defines Earnings Yield as operating income divided by enterprise value.
Illinois Tool Workss Earnings Yield (Joel Greenblatt) for the fiscal year that ended in Dec. 2025 is calculated as
Illinois Tool Works's EBIT for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was €3,802 Mil.
What does a Earnings Yield (Joel Greenblatt) % of 5.21% mean?
Illinois Tool Works (FRA:ILT) has a Earnings Yield (Joel Greenblatt) % of 5.21% as of Mar. 2026. Joel Greenblatt's earnings yield equals the ratio of earnings before interest and taxes to enterprise value. View historical data on Illinois Tool Works and its competitors. This is near median its historical median of 5.38. Over the past decade, Illinois Tool Works' Earnings Yield (Joel Greenblatt) % has ranged from 3.72 to 7.67. According to the industry distribution chart, Illinois Tool Works ranks #1296 out of 3084 companies in the Industrial Products industry, placing it in the top 42%.
Is Illinois Tool Works' Earnings Yield (Joel Greenblatt) % too high?
Illinois Tool Works' current Earnings Yield (Joel Greenblatt) % of 5.21% is near median its 10-year median of 5.38. Over the past 10 years, this metric has ranged from a low of 3.72 to a high of 7.67. The Industrial Products industry median Earnings Yield (Joel Greenblatt) % is 3.54. Illinois Tool Works' value of 5.21% is 47.4% above this industry median. Based on the distribution chart, Illinois Tool Works ranks #1296 out of 3084 companies in the Industrial Products industry, which is above the industry midpoint. Overall, Illinois Tool Works has a GF Score™ of 84/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Illinois Tool Works' Earnings Yield (Joel Greenblatt) % compare to EMR and CMI?
According to the Industrial Products industry distribution chart, Illinois Tool Works ranks #1296 out of 3084 companies for Earnings Yield (Joel Greenblatt) %. This puts Illinois Tool Works in the upper half of its industry. The industry median Earnings Yield (Joel Greenblatt) % is 3.54. Illinois Tool Works' value of 5.21% is 47.4% above this benchmark. Historically, Illinois Tool Works' own Earnings Yield (Joel Greenblatt) % has ranged from 3.72 to 7.67 over the past decade. While the company's 10-year median is 5.38 vs. the industry median of 3.54, 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 Earnings Yield (Joel Greenblatt) % for an Industrial Products company?
The median Earnings Yield (Joel Greenblatt) % among Industrial Products companies is 3.54, based on 3,084 companies in the industry. Companies in the top quartile (top 25%) have a Earnings Yield (Joel Greenblatt) % significantly above this median, while those in the bottom quartile fall well below. However, Earnings Yield (Joel Greenblatt) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Illinois Tool Works's current Earnings Yield (Joel Greenblatt) % of 5.21% is 47.4% 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 Earnings Yield (Joel Greenblatt) % mean?
A high Earnings Yield (Joel Greenblatt) % can signal that a stock is expensive relative to its fundamentals. Joel Greenblatt's earnings yield equals the ratio of earnings before interest and taxes to enterprise value. View historical data on Illinois Tool Works and its competitors. For the Industrial Products industry, the median Earnings Yield (Joel Greenblatt) % is 3.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Illinois Tool Works's current Earnings Yield (Joel Greenblatt) % is 5.21%, which is near median its own 10-year median of 5.38. 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 Modestly Overvalued. The stock's GF Value™ is €225.00, compared to a current price of €248.80 — trading 10.6% above its estimated fair value. The current Earnings Yield (Joel Greenblatt) % is 5.21%, which is near median its 10-year median of 5.38 and 47.4% above the Industrial Products industry median of 3.54. Illinois Tool Works' overall GF Score™ is 84/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Earnings Yield (Joel Greenblatt) % calculated?
Earnings Yield (Joel Greenblatt) % is calculated from a company's financial statements. For Illinois Tool Works (FRA:ILT), the current Earnings Yield (Joel Greenblatt) % is 5.21% 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 €248.80 is trading 10.6% above its estimated GF Value™ of €225.00.
GuruFocus considers Illinois Tool Works to be Modestly Overvalued.
Key valuation signals for FRA:ILT:
Earnings Yield (Joel Greenblatt) %: 5.21% (near median its 10-year median of 5.38)
GF Value™: €225.00 vs. price of €248.80 (10.6% above fair value)
Industry Position: 47.4% above the Industrial Products median (#1296 of 3084)
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
Earnings Yield (Joel Greenblatt) % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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