Stock Analysis on Net

Illinois Tool Works Inc. (NYSE:ITW)

$22.49

This company has been moved to the archive! The financial data has not been updated since February 11, 2022.

Price to Earnings (P/E)
since 2005

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Calculation

Illinois Tool Works Inc., P/E, long-term trends, calculation

Microsoft Excel

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).

1 US$

2 Data adjusted for splits and stock dividends.

3 Closing price as at the filing date of Illinois Tool Works Inc. Annual Report.


Share Price
The share price experienced significant fluctuations over the period observed. Initially, it rose from $43.29 in early 2006 to a peak of $54.10 by early 2011, despite a notable dip to $27.80 in early 2009. From 2011 onward, there was a consistent upward trend, reaching a high of $217.72 by early 2022. This reflects a substantial increase in market valuation over the long term, particularly strong growth after 2012.
Earnings Per Share (EPS)
Earnings per share showed moderate growth with some volatility. Starting at $2.66 in 2006, EPS increased to $3.55 by early 2008 before falling to $1.88 by early 2010. It subsequently improved, reaching $6.36 by early 2013, though it declined again in some years such as early 2014 and 2016. Notably, EPS peaked at $8.61 in early 2022, indicating enhanced profitability despite intermittent periods of lower earnings.
Price-to-Earnings (P/E) Ratio
The P/E ratio demonstrated considerable variability throughout the timeframe. It started at 16.27 in 2006, slightly rising and falling with EPS and share price fluctuations. A low P/E ratio of 9.14 was observed in 2009, coinciding with reduced share price and EPS. The ratio peaked at 33.07 in early 2018, suggesting valuation expansion beyond earnings growth. In recent years, the P/E stayed elevated in the 20-30 range, indicating investor confidence and expectation of sustained earnings growth.
Overall Trends and Insights
The data reflects resilience and growth in market value, evidenced by the more than fivefold increase in share price from 2006 to 2022. Earnings per share, while volatile, followed an upward trajectory with some periods of decline possibly due to economic or company-specific challenges. The P/E ratio's fluctuations indicate changing market perceptions of value, with periods of market pessimism and optimism. The elevated P/E ratio during later years suggests the market’s willingness to pay a premium for growth potential, supported by the rising EPS figures. The dip in share price and EPS around 2009 aligns with the global financial crisis, yet recovery thereafter was robust.

Comparison to Competitors

Illinois Tool Works Inc., P/E, long-term trends, comparison to competitors

Microsoft Excel

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).


Comparison to Sector (Capital Goods)

Illinois Tool Works Inc., P/E, long-term trends, comparison to sector (capital goods)

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Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).


Comparison to Industry (Industrials)

Illinois Tool Works Inc., P/E, long-term trends, comparison to industry (industrials)

Microsoft Excel

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).