* The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
The historical rank and industry rank for Illinois Tool Works's PEG Ratio or its related term are showing as below:
XTER:ILT'
s PEG Ratio Range Over the Past 10 Years
Min: 1.48 Med: 3.17 Max: 26.6
Current: 5.55
During the past 13 years, Illinois Tool Works's highest PEG Ratio was 26.60. The lowest was 1.48. And the median was 3.17.
XTER:ILT's PEG Ratio is ranked worse than 82.14% of 1282
companies
in the Industrial Products industry
Industry Median: 1.72
vs XTER:ILT: 5.55
Peter Lynch thinks a company with a P/E ratio equal to its growth rate is fairly valued.
Illinois Tool Works PEG Ratio Historical Data
The historical data trend for Illinois Tool Works's PEG Ratio 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.
Competitive Comparison of Illinois Tool Works's PEG Ratio
For the Specialty Industrial Machinery subindustry, Illinois Tool Works's PEG Ratio, along with its competitors' market caps and PEG 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 PEG Ratio Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, Illinois Tool Works's PEG Ratio distribution charts can be found below:
* The bar in red indicates where Illinois Tool Works's PEG Ratio falls into.
Illinois Tool Works PEG Ratio Calculation
PEG Ratio is defined as the PE Ratio without NRI divided by the growth ratio.
The ratio we use is the 5-Year EBITDA growth rate.
* 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.
* Note: The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
Illinois Tool Works (XTER:ILT) PEG Ratio Explanation
To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the P/E ratio divided by the growth ratio. He thinks a company with a P/E ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a P/E of 20, instead of a company growing 10% a year with a P/E of 10.
Illinois Tool Works PEG Ratio Related Terms
Thank you for viewing the detailed overview of Illinois Tool Works's PEG Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Illinois Tool Works is a diversified global manufacturer that produces specialized industrial equipment, consumables, and related services. The firm operates 84 global divisions through seven distinct operating segments: automotive OEM, construction products, food equipment, specialty products, test/measurement and electronics, polymers and fluids, and welding. About half of its revenue comes from its operations in North America, with the remainder originating from international markets. Europe, the Middle East, and Africa is the next largest contributor at about 25% of revenue. ITW takes a bottom-up and decentralized approach to portfolio management, with the exception that each segment must apply its 80/20 operating process modeled on the Pareto principle.
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