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Illinois Tool WorksFRA:ILT -0.67%87 Shiller PE Ratio is 27.66 as of Sep. 01, 2026, which is 3% below its 10-year median of 28.64. GuruFocus rates FRA:ILT with a GF Score™ of 87/100 and a GF Value™ of €235.72 (Fairly Valued). The stock has 4 warning signs investors should review. Among 1,809 Industrial Products companies, Illinois Tool Works ranks better than 51.69% on this metric.
The historical rank and industry rank for Illinois Tool Works's Shiller PE Ratio or its related term are showing as below:
FRA:ILT'
s Shiller PE Ratio Range Over the Past 10 Years
Min: 21.14 Med: 28.64 Max: 37.58
Current: 27.41
During the past years, Illinois Tool Works's highest Shiller PE Ratio was 37.58. The lowest was 21.14. And the median was 28.64.
FRA:ILT's Shiller PE Ratio is ranked better than 51.69% of 1809
companies
in the Industrial Products industry
Industry Median: 29.07
vs FRA:ILT: 27.41
E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years.
Illinois Tool Works's adjusted earnings per share data for the three months ended in Jun. 2026 was €2.465. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is €8.62 for the trailing ten years ended in Jun. 2026.
Shiller PE for Stocks: The True Measure of Stock Valuation
Illinois Tool Works (FRA:ILT) Shiller PE Ratio Explanation
Compared with the regular PE Ratio, which works poorly for cyclical businesses, the Shiller PE Ratio smoothed out the fluctuations of profit margins during business cycles. Therefore it is more accurate in reflecting the valuation of the company.
If a company has consistent business performance, the Shiller PE Ratio should give similar results to regular PE Ratio.
Compared with the PS Ratio, the Shiller PE Ratio makes the comparison between different industries more meaningful.
Be Aware
Shiller PE Ratio assumes that over the long term, businesses and profitability revert to their means. If a company's business model does not work in the future compared with the past, Shiller PE Ratio and PS Ratio will give false valuations.
Illinois Tool Works Shiller PE Ratio Related Terms
Illinois Tool Works Shiller PE Ratio Historical Data
* Premium members only.
The historical data trend for Illinois Tool Works's Shiller PE 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.
FRA:ILT vs CMI, EMR, AME: Shiller PE Ratio Comparison
For the Specialty Industrial Machinery subindustry, Illinois Tool Works's Shiller PE Ratio, along with its competitors' market caps and Shiller PE 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 Shiller PE Ratio vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Illinois Tool Works's Shiller PE Ratio distribution charts can be found below:
* The bar in red indicates where Illinois Tool Works's Shiller PE Ratio falls into.
For Shiller PE Ratio, the earnings of the past 10 years are inflation-adjusted and averaged. The result is used for P/E calculation. Since it looks at the average over the last 10 years, the Shiller PE Ratio is also called PE10.
The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The same calculation is applied here to individual companies.
* 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.
Add all the adjusted EPS together and divide 10 will get our E10.
Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.
Illinois Tool Works (FRA:ILT) has a Shiller PE Ratio of 27.66 as of Sep. 01, 2026. Shiller price-earnings ratio is the ratio of share price to a company's inflation-adjusted earnings over a 10-year period. View historical data on Illinois Tool Works and its competitors. This is near median its historical median of 28.64. Over the past decade, Illinois Tool Works' Shiller PE Ratio has ranged from 21.14 to 37.58. According to the industry distribution chart, Illinois Tool Works ranks #874 out of 1809 companies in the Industrial Products industry, placing it in the top 48.3%.
Is Illinois Tool Works' Shiller PE Ratio too high?
Illinois Tool Works' current Shiller PE Ratio of 27.66 is near median its 10-year median of 28.64. Over the past 10 years, this metric has ranged from a low of 21.14 to a high of 37.58. The Industrial Products industry median Shiller PE Ratio is 29.07. Illinois Tool Works' value of 27.66 is 4.9% below this industry median. Based on the distribution chart, Illinois Tool Works ranks #874 out of 1809 companies in the Industrial Products industry, which is above the industry midpoint. Overall, Illinois Tool Works has a GF Score™ of 87/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Illinois Tool Works' Shiller PE Ratio compare to CMI and EMR?
According to the Industrial Products industry distribution chart, Illinois Tool Works ranks #874 out of 1809 companies for Shiller PE Ratio. This puts Illinois Tool Works in the upper half of its industry. The industry median Shiller PE Ratio is 29.07. Illinois Tool Works' value of 27.66 is 4.9% below this benchmark. Historically, Illinois Tool Works' own Shiller PE Ratio has ranged from 21.14 to 37.58 over the past decade. While the company's 10-year median is 28.64 vs. the industry median of 29.07, Illinois Tool Works has consistently been below 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 Shiller PE Ratio for an Industrial Products company?
The median Shiller PE Ratio among Industrial Products companies is 29.07, based on 1,809 companies in the industry. Companies in the top quartile (top 25%) have a Shiller PE Ratio significantly above this median, while those in the bottom quartile fall well below. However, Shiller PE Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Illinois Tool Works's current Shiller PE Ratio of 27.66 is 4.9% below 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 Shiller PE Ratio mean?
A high Shiller PE Ratio can signal that a stock is expensive relative to its fundamentals. Shiller price-earnings ratio is the ratio of share price to a company's inflation-adjusted earnings over a 10-year period. View historical data on Illinois Tool Works and its competitors. For the Industrial Products industry, the median Shiller PE Ratio is 29.07 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Illinois Tool Works's current Shiller PE Ratio is 27.66, which is near median its own 10-year median of 28.64. 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 Fairly Valued. The stock's GF Value™ is €235.72, compared to a current price of €238.40 — trading 1.1% above its estimated fair value. The current Shiller PE Ratio is 27.66, which is near median its 10-year median of 28.64 and 4.9% below the Industrial Products industry median of 29.07. Illinois Tool Works' overall GF Score™ is 87/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Shiller PE Ratio calculated?
Shiller PE Ratio is calculated from a company's financial statements. For Illinois Tool Works (FRA:ILT), the current Shiller PE Ratio is 27.66 as of Sep. 01, 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 €238.40 is trading 1.1% above its estimated GF Value™ of €235.72.
GuruFocus considers Illinois Tool Works to be Fairly Valued.
Key valuation signals for FRA:ILT:
Shiller PE Ratio: 27.66 (near median its 10-year median of 28.64)
GF Value™: €235.72 vs. price of €238.40 (1.1% above fair value)
Industry Position: 4.9% below the Industrial Products median (#874 of 1809)
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.
87GF Score
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