Price to Earnings (P/E)
since 2005
Calculation
Illinois Tool Works Inc., P/E, long-term trends, calculation
| P/E | = | Share price1, 2, 3 | ÷ | Earnings per share1 (EPS) | EPS1 | = | Net income1 (in millions) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 11, 2022 | 25.29 | = | 217.72 | ÷ | 8.61 | 8.61 | = | 2,694 | ÷ | 312,926,939 | |
| Feb 12, 2021 | 30.18 | = | 200.98 | ÷ | 6.66 | 6.66 | = | 2,109 | ÷ | 316,662,263 | |
| Feb 14, 2020 | 23.76 | = | 187.86 | ÷ | 7.91 | 7.91 | = | 2,521 | ÷ | 318,864,237 | |
| Feb 15, 2019 | 18.46 | = | 144.21 | ÷ | 7.81 | 7.81 | = | 2,563 | ÷ | 328,108,383 | |
| Feb 15, 2018 | 33.07 | = | 163.36 | ÷ | 4.94 | 4.94 | = | 1,687 | ÷ | 341,545,719 | |
| Feb 10, 2017 | 21.80 | = | 128.00 | ÷ | 5.87 | 5.87 | = | 2,035 | ÷ | 346,550,685 | |
| Feb 12, 2016 | 17.60 | = | 91.88 | ÷ | 5.22 | 5.22 | = | 1,899 | ÷ | 363,766,897 | |
| Feb 13, 2015 | 12.66 | = | 98.26 | ÷ | 7.76 | 7.76 | = | 2,946 | ÷ | 379,447,026 | |
| Feb 14, 2014 | 19.89 | = | 78.59 | ÷ | 3.95 | 3.95 | = | 1,679 | ÷ | 424,867,793 | |
| Feb 19, 2013 | 10.10 | = | 64.19 | ÷ | 6.36 | 6.36 | = | 2,870 | ÷ | 451,435,783 | |
| Feb 17, 2012 | 13.12 | = | 56.19 | ÷ | 4.28 | 4.28 | = | 2,071 | ÷ | 483,773,784 | |
| Feb 28, 2011 | 17.66 | = | 54.10 | ÷ | 3.06 | 3.06 | = | 1,527 | ÷ | 498,419,391 | |
| Feb 26, 2010 | 24.15 | = | 45.52 | ÷ | 1.88 | 1.88 | = | 947 | ÷ | 502,408,086 | |
| Feb 27, 2009 | 9.14 | = | 27.80 | ÷ | 3.04 | 3.04 | = | 1,519 | ÷ | 499,164,971 | |
| Feb 28, 2008 | 14.08 | = | 49.95 | ÷ | 3.55 | 3.55 | = | 1,870 | ÷ | 526,912,512 | |
| Feb 26, 2007 | 17.11 | = | 52.60 | ÷ | 3.07 | 3.07 | = | 1,718 | ÷ | 558,822,857 | |
| Feb 24, 2006 | 16.27 | = | 43.29 | ÷ | 2.66 | 2.66 | = | 1,495 | ÷ | 561,837,734 |
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.
An analysis of the financial performance from 2006 to 2022 reveals a consistent long-term appreciation in equity value, accompanied by significant fluctuations in valuation multiples and earnings stability.
- Share Price Progression
- The share price exhibited a strong upward trajectory over the analyzed period, rising from 43.29 USD in 2006 to 217.72 USD by 2022. A notable contraction occurred in 2009, where the price fell to 27.80 USD, marking the lowest point in the series. Following this trough, the price recovered steadily, experiencing accelerated growth between 2016 and 2022.
- Earnings Per Share (EPS) Trends
- Earnings per share demonstrated a general growth trend, although the path was characterized by volatility. EPS grew from 2.66 USD in 2006 to a peak of 8.61 USD in 2022. Significant dips in earnings occurred in 2010 (1.88 USD) and 2014 (3.95 USD), indicating periods of operational pressure or accounting adjustments that temporarily decoupled earnings from the long-term growth trend.
- Price-to-Earnings (P/E) Ratio Dynamics
- The P/E ratio showed substantial variance, reflecting shifting market sentiment and earnings volatility. The ratio reached a historical low of 9.14 in 2009, coinciding with the share price bottom. A subsequent spike to 24.15 occurred in 2010, driven primarily by the decline in EPS rather than a surge in price. The most significant valuation expansion was observed in 2018, where the P/E ratio peaked at 33.07, suggesting a period of high investor optimism or a temporary depression in earnings relative to price.
The relationship between share price and earnings indicates a valuation expansion in the latter half of the period. While the P/E ratio frequently fluctuated between 10.00 and 20.00 from 2006 to 2016, the period from 2017 to 2022 saw the ratio sustain higher levels, often exceeding 25.00. This shift suggests that the market began assigning a higher premium to the company's earnings in more recent years.
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Comparison to Competitors
Illinois Tool Works Inc., P/E, long-term trends, comparison to competitors
| Illinois Tool Works Inc. | Boeing Co. | Caterpillar Inc. | Eaton Corp. plc | GE Aerospace | Honeywell International Inc. | Lockheed Martin Corp. | RTX Corp. | |
|---|---|---|---|---|---|---|---|---|
| Feb 11, 2022 | 25.29 | — | 16.82 | 27.77 | — | 23.14 | 16.70 | 36.79 |
| Feb 12, 2021 | 30.18 | — | 36.80 | 37.46 | 19.67 | 29.63 | 13.44 | — |
| Feb 14, 2020 | 23.76 | — | 12.36 | 18.06 | — | 20.97 | 19.87 | 24.41 |
| Feb 15, 2019 | 18.46 | 21.87 | 12.42 | 15.92 | — | 16.02 | 16.88 | 19.74 |
| Feb 15, 2018 | 33.07 | 24.68 | 126.80 | 11.90 | — | 67.20 | 48.70 | 21.97 |
| Feb 10, 2017 | 21.80 | 20.50 | — | 16.96 | 32.22 | 19.29 | 14.14 | 17.55 |
| Feb 12, 2016 | 17.60 | 14.89 | 18.07 | 13.17 | — | 16.70 | 18.36 | 9.31 |
| Feb 13, 2015 | 12.66 | 19.15 | 14.01 | 18.73 | 17.17 | 19.27 | 16.86 | 17.52 |
| Feb 14, 2014 | 19.89 | 21.10 | 16.25 | 19.35 | 19.59 | 18.91 | 17.56 | 17.51 |
| Feb 19, 2013 | 10.10 | 14.71 | 11.02 | 23.99 | 17.57 | 18.78 | 10.34 | 16.07 |
| Feb 17, 2012 | 13.12 | 14.09 | 15.11 | 12.83 | 15.52 | 22.54 | 10.81 | 15.29 |
| Feb 28, 2011 | 17.66 | 16.17 | 24.14 | 19.59 | 19.49 | 22.48 | 9.58 | 17.84 |
| Feb 26, 2010 | 24.15 | 33.40 | 40.66 | 29.60 | 16.09 | 13.44 | 9.56 | 16.33 |
| Feb 27, 2009 | 9.14 | 11.63 | 4.51 | 5.65 | 6.62 | 8.71 | 8.47 | 9.57 |
| Feb 28, 2008 | 14.08 | 15.99 | 12.54 | 11.89 | 15.45 | 17.07 | 14.15 | 16.61 |
| Feb 26, 2007 | 17.11 | 32.40 | 12.28 | 12.47 | 17.11 | 18.37 | 16.95 | 18.16 |
| Feb 24, 2006 | 16.27 | 22.62 | 17.17 | 12.82 | 21.07 | 20.71 | 17.45 | 18.76 |
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)
| Illinois Tool Works Inc. | Capital Goods | |
|---|---|---|
| Feb 11, 2022 | 25.29 | 57.31 |
| Feb 12, 2021 | 30.18 | 123.55 |
| Feb 14, 2020 | 23.76 | 39.03 |
| Feb 15, 2019 | 18.46 | 56.00 |
| Feb 15, 2018 | 33.07 | 55.16 |
| Feb 10, 2017 | 21.80 | 23.62 |
| Feb 12, 2016 | 17.60 | 33.10 |
| Feb 13, 2015 | 12.66 | 17.47 |
| Feb 14, 2014 | 19.89 | 18.85 |
| Feb 19, 2013 | 10.10 | 15.74 |
| Feb 17, 2012 | 13.12 | 15.20 |
| Feb 28, 2011 | 17.66 | 18.46 |
| Feb 26, 2010 | 24.15 | 17.22 |
| Feb 27, 2009 | 9.14 | 7.48 |
| Feb 28, 2008 | 14.08 | 15.28 |
| Feb 26, 2007 | 17.11 | 17.63 |
| Feb 24, 2006 | 16.27 | 20.11 |
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)
| Illinois Tool Works Inc. | Industrials | |
|---|---|---|
| Feb 11, 2022 | 25.29 | 35.59 |
| Feb 12, 2021 | 30.18 | — |
| Feb 14, 2020 | 23.76 | 43.95 |
| Feb 15, 2019 | 18.46 | 33.70 |
| Feb 15, 2018 | 33.07 | 29.83 |
| Feb 10, 2017 | 21.80 | 22.92 |
| Feb 12, 2016 | 17.60 | 22.89 |
| Feb 13, 2015 | 12.66 | 18.79 |
| Feb 14, 2014 | 19.89 | 19.13 |
| Feb 19, 2013 | 10.10 | 17.77 |
| Feb 17, 2012 | 13.12 | 15.75 |
| Feb 28, 2011 | 17.66 | 18.72 |
| Feb 26, 2010 | 24.15 | 19.17 |
| Feb 27, 2009 | 9.14 | 9.73 |
| Feb 28, 2008 | 14.08 | 16.93 |
| Feb 26, 2007 | 17.11 | 11.65 |
| Feb 24, 2006 | 16.27 | 50.62 |
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).