Illinois Tool WorksITW +1.25%85 EV-to-FCF is 31.27 as of Jul. 10, 2026, which is 11% above its 10-year median of 28.29. GuruFocus rates ITW with a GF Score™ of 85/100 and a GF Value™ of $266.41 (Fairly Valued). The stock has 1 warning sign investors should review. Among 1,728 Industrial Products companies, Illinois Tool Works ranks worse than 57.41% on this metric.
EV-to-FCF is calculated as enterprise value divided by its free cash flow. As of today, Illinois Tool Works's Enterprise Value is $85,659 Mil.
Illinois Tool Works's Free Cash Flow for the trailing twelve months (TTM) ended in Mar. 2026 was $2,739 Mil. Therefore, Illinois Tool Works's EV-to-FCF for today is 31.27.
The historical rank and industry rank for Illinois Tool Works's EV-to-FCF or its related term are showing as below:
ITW'
s EV-to-FCF Range Over the Past 10 Years
Min: 17.44 Med: 28.29 Max: 42.99
Current: 31.27
During the past 13 years, the highest EV-to-FCF of Illinois Tool Works was 42.99. The lowest was 17.44. And the median was 28.29.
ITW's EV-to-FCF is ranked worse than 57.41% of 1728
companies
in the Industrial Products industry
Industry Median: 25.7
vs ITW: 31.27
EV-to-FCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.
Illinois Tool Works (NYSE:ITW) EV-to-FCF Explanation
EV-to-FCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.
Illinois Tool Works's PE Ratio (TTM) for today is calculated as:
Illinois Tool Works's share price for today is $268.81.
Illinois Tool Works's Earnings per Share (Diluted) 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 $10.770.
* 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.
Enterprise Value is used because it is a more complete measure in reflecting how much an investor pays when buying a company. Free Cash Flow is an important financial metric because it represents the actual amount of cash at a company's disposal. Companies with a low EV-to-FCF ratio, combined with a strong balance sheet are generally considered as undervalued.
Illinois Tool Works EV-to-FCF Related Terms
Illinois Tool Works EV-to-FCF Historical Data
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The historical data trend for Illinois Tool Works's EV-to-FCF 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.
For the Specialty Industrial Machinery subindustry, Illinois Tool Works's EV-to-FCF, along with its competitors' market caps and EV-to-FCF 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 EV-to-FCF vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Illinois Tool Works's EV-to-FCF distribution charts can be found below:
* The bar in red indicates where Illinois Tool Works's EV-to-FCF falls into.
Illinois Tool Works's current Enterprise Value is $85,659 Mil.
Illinois Tool Works's Free Cash Flow 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 $2,739 Mil.
* 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 (ITW) has a EV-to-FCF of 31.27 as of Jul. 10, 2026. EV to FCF ratio is the company's enterprise value divided by free cash flow. View historical data on Illinois Tool Works and its competitors. This is 11% above median its historical median of 28.29. Over the past decade, Illinois Tool Works' EV-to-FCF has ranged from 17.44 to 42.99. According to the industry distribution chart, Illinois Tool Works ranks #992 out of 1728 companies in the Industrial Products industry, placing it in the top 57.4%.
Is Illinois Tool Works' EV-to-FCF too high?
Illinois Tool Works' current EV-to-FCF of 31.27 is 11% above median its 10-year median of 28.29. Over the past 10 years, this metric has ranged from a low of 17.44 to a high of 42.99. The Industrial Products industry median EV-to-FCF is 25.70. Illinois Tool Works' value of 31.27 is 21.7% above this industry median. Based on the distribution chart, Illinois Tool Works ranks #992 out of 1728 companies in the Industrial Products industry, which is below the industry midpoint. Overall, Illinois Tool Works has a GF Score™ of 85/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Illinois Tool Works' EV-to-FCF compare to EMR and CMI?
According to the Industrial Products industry distribution chart, Illinois Tool Works ranks #992 out of 1728 companies for EV-to-FCF. This places Illinois Tool Works in the lower half of its industry. The industry median EV-to-FCF is 25.70. Illinois Tool Works' value of 31.27 is 21.7% above this benchmark. Historically, Illinois Tool Works' own EV-to-FCF has ranged from 17.44 to 42.99 over the past decade. While the company's 10-year median is 28.29 vs. the industry median of 25.70, 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 EV-to-FCF for an Industrial Products company?
The median EV-to-FCF among Industrial Products companies is 25.70, based on 1,728 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-FCF significantly above this median, while those in the bottom quartile fall well below. However, EV-to-FCF should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Illinois Tool Works's current EV-to-FCF of 31.27 is 21.7% 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 EV-to-FCF mean?
A high EV-to-FCF can signal that a stock is expensive relative to its fundamentals. EV to FCF ratio is the company's enterprise value divided by free cash flow. View historical data on Illinois Tool Works and its competitors. For the Industrial Products industry, the median EV-to-FCF is 25.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Illinois Tool Works's current EV-to-FCF is 31.27, which is 11% above median its own 10-year median of 28.29. 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 (ITW) is currently considered Fairly Valued. The stock's GF Value™ is $266.41, compared to a current price of $268.81 — trading 0.9% above its estimated fair value. The current EV-to-FCF is 31.27, which is 11% above median its 10-year median of 28.29 and 21.7% above the Industrial Products industry median of 25.70. Illinois Tool Works' overall GF Score™ is 85/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EV-to-FCF calculated?
EV-to-FCF is calculated from a company's financial statements. For Illinois Tool Works (ITW), the current EV-to-FCF is 31.27 as of Jul. 10, 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 (ITW) Overvalued in 2026?
Based on GuruFocus' analysis, Illinois Tool Works stock appears to be overvalued.
The current stock price of $268.81 is trading 0.9% above its estimated GF Value™ of $266.41.
GuruFocus considers Illinois Tool Works to be Fairly Valued.
Key valuation signals for ITW:
EV-to-FCF: 31.27 (11% above median its 10-year median of 28.29)
GF Value™: $266.41 vs. price of $268.81 (0.9% above fair value)
Industry Position: 21.7% above the Industrial Products median (#992 of 1728)
No single metric tells the full story. See the ITW 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.
85GF Score
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