Illinois Tool Works (WBO:ITW) Margin of Safety % (DCF FCF Based): -142.81% (As of Jun. 25, 2026)


WBO:ITW Illinois Tool Works Inc WBO:ITW
82 GF Score
Price €233.70
GF Value €235.70
Valuation Fairly Valued
! 1 Warning Sign
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What is Illinois Tool Works Margin of Safety % (DCF FCF Based)?

Illinois Tool Works WBO:ITW +0.86% 82 Margin of Safety % (DCF FCF Based) is -142.81% as of Jun. 25, 2026. GuruFocus rates WBO:ITW with a GF Score™ of 82/100 and a GF Value™ of €235.70 (Fairly Valued). The stock has 1 warning sign investors should review.

Margin of Safety % (DCF FCF Based) = (Intrinsic Value: DCF (FCF Based) - Current Price) / Intrinsic Value: DCF (FCF Based).

Note: Discounted FCF model is only suitable for predictable companies (Business Predictability Rank higher than 1-Star). If the company's Predictability Rank is 1-Star or Not Rated, result may not be accurate due to the low predictability of business and the data will not be stored into our database.

As of today (2026-06-25), Illinois Tool Works's Predictability Rank is 3-Stars. Illinois Tool Works's intrinsic value calculated from the Discounted FCF model is €131.61 and current share price is €233.70. Consequently,

Illinois Tool Works's Margin of Safety % (DCF FCF Based) using Discounted FCF model is -142.81%.

WBO:ITW vs EMR, CMI, AME: Margin of Safety % (DCF FCF Based) Comparison

For the Specialty Industrial Machinery subindustry, Illinois Tool Works's Margin of Safety % (DCF FCF Based), along with its competitors' market caps and Margin of Safety % (DCF FCF Based) 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 Margin of Safety % (DCF FCF Based) vs Industrial Products Industry

For the Industrial Products industry and Industrials sector, Illinois Tool Works's Margin of Safety % (DCF FCF Based) distribution charts can be found below:

* The bar in red indicates where Illinois Tool Works's Margin of Safety % (DCF FCF Based) falls into.


WBO:ITW
82GF Score
Illinois Tool Works Inc WBO:ITW
Margin of Safety % (DCF FCF Based) is just one metric. See GF Score™, valuation, warning signs, and more.
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Illinois Tool Works Margin of Safety % (DCF FCF Based) Calculation

Illinois Tool Works's Margin of Safety % (DCF FCF Based) for today is calculated as

Margin of Safety % (DCF FCF Based)=(Intrinsic Value: DCF (FCF Based)-Current Price)/Intrinsic Value: DCF (FCF Based)
=(96.25-233.70)/96.25
=-142.81 %

* 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.

The intrinsic value is calculated from the Discounted FCF model with default parameters. The calculation method is the same as Discounted Earnings model except free cash flow are used in the calculation instead of earnings per share.

What does a Margin of Safety % (DCF FCF Based) of -142.81% mean?
Illinois Tool Works (WBO:ITW) has a Margin of Safety % (DCF FCF Based) of -142.81% as of Jun. 25, 2026. Margin of Safety % (DCF FCF Based) is the percent difference between the current price and the intrinsic DCF FCF price. View historical data on Illinois Tool Works.
Is Illinois Tool Works' Margin of Safety % (DCF FCF Based) too high?
Illinois Tool Works' current Margin of Safety % (DCF FCF Based) is -142.81%. Overall, Illinois Tool Works has a GF Score™ of 82/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Illinois Tool Works' Margin of Safety % (DCF FCF Based) compare to EMR and CMI?
Illinois Tool Works' Margin of Safety % (DCF FCF Based) of -142.81% can be compared against companies in the Industrial Products industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Margin of Safety % (DCF FCF Based) for an Industrial Products company?
A good Margin of Safety % (DCF FCF Based) depends on the Industrial Products industry context. However, Margin of Safety % (DCF FCF Based) should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Margin of Safety % (DCF FCF Based) mean?
A high Margin of Safety % (DCF FCF Based) can signal that a stock is expensive relative to its fundamentals. Margin of Safety % (DCF FCF Based) is the percent difference between the current price and the intrinsic DCF FCF price. View historical data on Illinois Tool Works. Illinois Tool Works's current Margin of Safety % (DCF FCF Based) is -142.81%. 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 (WBO:ITW) is currently considered Fairly Valued. The stock's GF Value™ is €235.70, compared to a current price of €233.70 — trading 0.8% below its estimated fair value. The current Margin of Safety % (DCF FCF Based) is -142.81%. Illinois Tool Works' overall GF Score™ is 82/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Margin of Safety % (DCF FCF Based) calculated?
Margin of Safety % (DCF FCF Based) is calculated from a company's financial statements. For Illinois Tool Works (WBO:ITW), the current Margin of Safety % (DCF FCF Based) is -142.81% as of Jun. 25, 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 (WBO:ITW) Overvalued in 2026?

Based on GuruFocus' analysis, Illinois Tool Works stock appears to be undervalued. The current stock price of €233.70 is trading 0.8% below its estimated GF Value™ of €235.70. GuruFocus considers Illinois Tool Works to be Fairly Valued.

Key valuation signals for WBO:ITW:

  • Margin of Safety % (DCF FCF Based): -142.81%
  • GF Value™: €235.70 vs. price of €233.70 (0.8% below fair value)
  • GF Score™: 82/100 with 1 warning sign

No single metric tells the full story. See the WBO:ITW stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

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 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.
82GF Score

Get the complete analysis for WBO:ITW

Margin of Safety % (DCF FCF Based) is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€233.70
Price
€235.70
GF Value