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Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company. The details of how we calculate the intrinsic value of stocks are described in detail here.
As of today (2025-01-18), Illinois Tool Works's Intrinsic Value: Projected FCF is $103.59. The stock price of Illinois Tool Works is $256.38. Therefore, Illinois Tool Works's Price-to-Intrinsic-Value-Projected-FCF of today is 2.5.
The historical rank and industry rank for Illinois Tool Works's Intrinsic Value: Projected FCF or its related term are showing as below:
During the past 13 years, the highest Price-to-Intrinsic-Value-Projected-FCF of Illinois Tool Works was 3.07. The lowest was 1.35. And the median was 2.12.
The historical data trend for Illinois Tool Works's Intrinsic Value: Projected 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.
Illinois Tool Works Annual Data | |||||||||||||||||||||
Trend | Dec14 | Dec15 | Dec16 | Dec17 | Dec18 | Dec19 | Dec20 | Dec21 | Dec22 | Dec23 | |||||||||||
Intrinsic Value: Projected FCF | Get a 7-Day Free Trial | 79.03 | 75.97 | 80.37 | 80.14 | 91.92 |
Illinois Tool Works Quarterly Data | ||||||||||||||||||||
Dec19 | Mar20 | Jun20 | Sep20 | Dec20 | Mar21 | Jun21 | Sep21 | Dec21 | Mar22 | Jun22 | Sep22 | Dec22 | Mar23 | Jun23 | Sep23 | Dec23 | Mar24 | Jun24 | Sep24 | |
Intrinsic Value: Projected FCF | Get a 7-Day Free Trial | 88.49 | 91.92 | 93.29 | 96.71 | 103.59 |
For the Specialty Industrial Machinery subindustry, Illinois Tool Works's Price-to-Projected-FCF, along with its competitors' market caps and Price-to-Projected-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.
For the Industrial Products industry and Industrials sector, Illinois Tool Works's Price-to-Projected-FCF distribution charts can be found below:
* The bar in red indicates where Illinois Tool Works's Price-to-Projected-FCF falls into.
Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company.
The details of how we calculate the intrinsic value of stocks are described in detail here.
This method smooths out the free cash flow over the past 6-7 years, multiplies the results by a growth multiple, and adds a portion of Total Stockholders Equity.
Intrinsic Value: Projected FCF = ( Growth Multiple * Free Cash Flow (6 year avg) + 0.8 * Total Stockholders Equity (most recent) ) / Shares Outstanding (Diluted Average)
In the case of negative Total Stockholders Equity, the following formula is used (see Explanation section below for the reason):
Intrinsic Value: Projected FCF = ( Growth Multiple * Free Cash Flow (6 year avg) + Total Stockholders Equity (most recent) / 0.8 ) / Shares Outstanding (Diluted Average)
Add all the Free Cash Flow together and divide 6 will get Illinois Tool Works's Free Cash Flow(6 year avg) = $2,534.24.
Illinois Tool Works's Intrinsic Value: Projected FCF for today is calculated as
Intrinsic Value: Projected FCF | = | (Growth Multiple | * | Free Cash Flow (6 year avg) | + | Total Stockholders Equity (Sep24) | * | 0.8) | / | Shares Outstanding (Diluted Average) |
= | (11.069452086404 | * | 2534.24 | + | 3391 | * | 0.8) | / | 297.000 | |
= | 103.59 |
* 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 (NYSE:ITW) Intrinsic Value: Projected FCF Explanation
The growth multiple is capped between 8.35 and 17.74.
Total Stockholders Equity weighting is more art than science and it should always be revisited in more detail when researching a company. Weightings from 0% to 100% to more than 100% are possible. 80% was chosen as a happy median after taking the above ideas into consideration.
Illinois Tool Works's Price-to-Intrinsic-Value-Projected-FCF for today is calculated as
Price-to-Intrinsic-Value-Projected-FCF | = | Share Price | / | Intrinsic Value: Projected FCF |
= | 256.38 | / | 103.58736786346 | |
= | 2.48 |
* 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.
Thank you for viewing the detailed overview of Illinois Tool Works's Intrinsic Value: Projected FCF provided by GuruFocus.com. Please click on the following links to see related term pages.
Mary Katherine Lawler | officer: SVP & Chief HR Officer | ILLINOIS TOOL WORKS INC., 155 HARLEM AVE, GLENVIEW IL 60025 |
Smith David Byron Jr | director | 155 HARLEM AVE., GLENVIEW IL 60025 |
Michael M Larsen | officer: SVP & CFO | 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 |
Ernest Scott Santi | director, officer: President & CEO | ILLINOIS TOOL WORKS INC., 155 HARLEM AVE., GLENVIEW IL 60025 |
Christopher A O'herlihy | 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 |
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