Illinois Tool Works Inc., current enterprise value calculation

Current share price (P)	$217.72
No. shares of common stock outstanding	312,926,939
US$ in millions
Common equity (market value)¹	68,130)
Add: Noncontrolling interest (per books)	1)
Total equity	68,131)
Add: Short-term debt (per books)	778)
Add: Long-term debt (per books)	6,909)
Total equity and debt	75,818)
Less: Cash and equivalents	1,527)
Enterprise value (EV)	74,291)

Based on: 10-K (reporting date: 2021-12-31).

¹ Common equity (market value) = Share price × No. shares of common stock outstanding
= 217.72 × 312,926,939

Illinois Tool Works Inc., EV calculation

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Share price^1, 2	$217.72	$200.98	$187.86	$144.21	$163.36
No. shares of common stock outstanding¹	312,926,939	316,662,263	318,864,237	328,108,383	341,545,719
US$ in millions
Common equity (market value)³	68,130)	63,643)	59,902)	47,317)	55,795)
Add: Noncontrolling interest (book value)	1)	1)	4)	4)	4)
Total equity	68,131)	63,644)	59,906)	47,321)	55,799)
Add: Short-term debt (book value)	778)	350)	4)	1,351)	850)
Add: Long-term debt (book value)	6,909)	7,772)	7,754)	6,029)	7,478)
Total equity and debt	75,818)	71,766)	67,664)	54,701)	64,127)
Less: Cash and equivalents	1,527)	2,564)	1,981)	1,504)	3,094)
Enterprise value (EV)	74,291)	69,202)	65,683)	53,197)	61,033)

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).

¹ Data adjusted for splits and stock dividends.

² Closing price as at the filing date of Illinois Tool Works Inc. Annual Report.

³ 2021 Calculation
Common equity (market value) = Share price × No. shares of common stock outstanding
= 217.72 × 312,926,939

The financial trajectory of the enterprise value and associated equity metrics reveals a period of volatility in 2018 followed by a sustained growth phase from 2019 through 2021. The overall trend indicates a significant expansion in total valuation over the five-year period.

Enterprise Value (EV) Trajectory: The enterprise value experienced a contraction between 2017 and 2018, falling from 61,033 million to 53,197 million. A strong recovery began in 2019, with the value increasing to 65,683 million, and continuing an upward climb to reach 74,291 million by the end of 2021. This represents an overall increase of approximately 21.6% from the 2017 baseline.
Equity Market Value Trends: Common equity market value mirrored the movements of the enterprise value, showing a decline in 2018 to 47,317 million before entering a consistent growth cycle. By December 31, 2021, the market value of common equity reached 68,130 million, reflecting a steady rise in market capitalization following the 2018 low.
Capital Structure and Debt Integration: Total equity and debt values consistently exceeded the enterprise value across all reported years. This figure rose from 64,127 million in 2017 to 75,818 million in 2021. The minimal variance observed between total equity and common equity market value suggests a capital structure where the market value of equity is the primary driver of the total valuation.

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Illinois Tool Works Inc. (NYSE:ITW)

Enterprise Value (EV)

Current Enterprise Value (EV)

Historical Enterprise Value (EV)