Illinois Tool Works Inc., FCFE calculation

US$ in millions

12 months ended:	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Net income	2,694)	2,109)	2,521)	2,563)	1,687)
Net noncash charges	302)	448)	446)	536)	557)
Change in assets and liabilities, net of acquisitions and divestitures	(439)	250)	28)	(288)	158)
Net cash provided by operating activities	2,557)	2,807)	2,995)	2,811)	2,402)
Additions to plant and equipment	(296)	(236)	(326)	(364)	(297)
Proceeds from sale of plant and equipment	8)	10)	25)	26)	14)
Net proceeds from (repayments of) debt with original maturities of three months or less	120)	—)	(1)	(850)	849)
Proceeds from debt with original maturities of more than three months	90)	—)	1,774)	—)	—)
Repayments of debt with original maturities of more than three months	(351)	(4)	(1,351)	(1)	(652)
Free cash flow to equity (FCFE)	2,128)	2,577)	3,116)	1,622)	2,316)

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).

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Item	Description	The company
FCFE	Free cash flow to equity is the cash flow available to Illinois Tool Works Inc. equity holders after all operating expenses, interest, and principal payments have been paid and necessary investments in working and fixed capital have been made.	Illinois Tool Works Inc. FCFE decreased from 2019 to 2020 and from 2020 to 2021.

Illinois Tool Works Inc., current P/FCFE calculation, comparison to benchmarks

No. shares of common stock outstanding	312,926,939
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)	2,128)
FCFE per share	6.80
Current share price (P)	217.72
Valuation Ratio
P/FCFE	32.02
Benchmarks
P/FCFE, Competitors¹
Boeing Co.	—
Caterpillar Inc.	16.25
Cummins Inc.	24.41
Eaton Corp. plc	37.12
General Electric Co.	264.02
Honeywell International Inc.	25.78
Lockheed Martin Corp.	13.62
RTX Corp.	7.73

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

¹ Click competitor name to see calculations.

If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.

Illinois Tool Works Inc., historical P/FCFE calculation, comparison to benchmarks

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
No. shares of common stock outstanding¹	312,926,939	316,662,263	318,864,237	328,108,383	341,545,719
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)²	2,128)	2,577)	3,116)	1,622)	2,316)
FCFE per share³	6.80	8.14	9.77	4.94	6.78
Share price^1, 4	217.72	200.98	187.86	144.21	163.36
Valuation Ratio
P/FCFE⁵	32.02	24.70	19.22	29.17	24.09
Benchmarks
P/FCFE, Competitors⁶
Boeing Co.	—	6.78	19.60	—	—
Caterpillar Inc.	16.36	25.22	11.07	—	—
Cummins Inc.	20.97	9.53	10.85	—	—
Eaton Corp. plc	24.43	25.59	11.12	—	—
General Electric Co.	—	—	—	—	—
Honeywell International Inc.	46.23	12.59	21.75	—	—
Lockheed Martin Corp.	14.65	15.57	28.62	—	—
RTX Corp.	35.07	—	28.09	—	—
P/FCFE, Sector
Capital Goods	—	56.46	26.31	—	—
P/FCFE, Industry
Industrials	—	43.78	27.50	—	—

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 See details »

³ 2021 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 2,128,000,000 ÷ 312,926,939 = 6.80

⁴ Closing price as at the filing date of Illinois Tool Works Inc. Annual Report.

⁵ 2021 Calculation
P/FCFE = Share price ÷ FCFE per share
= 217.72 ÷ 6.80 = 32.02

⁶ Click competitor name to see calculations.

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Valuation ratio	Description	The company
P/FCFE	Price to free cash flow to equity is cash valuation indicator of stockholders’ equity.	Illinois Tool Works Inc. P/FCFE ratio increased from 2019 to 2020 and from 2020 to 2021.

Illinois Tool Works Inc. (NYSE:ITW)

Price to FCFE (P/FCFE)

Free Cash Flow to Equity (FCFE)

Price to FCFE Ratio, Current

Price to FCFE Ratio, Historical