Is Illinois Tool Works Inc. (ITW) Undervalued?
Based on the current stock price of $252.46 and a P/E ratio of 24.51,Illinois Tool Works Inc. has a PEG ratio of 8.06.
The Short Answer:
Most analysts consider a PEG ratio below 1.0 to be undervalued. With a ratio of 8.06, ITW appears to be potentially overvalued relative to its growth rate of 3.04%.
Based on a PEG ratio of 4.38 (adjusted for dividends).
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How we analyzed ITW
We calculated the PEG (Price/Earnings-to-Growth) ratio by taking the Price-to-Earnings Ratio of 24.51and dividing it by the annual growth rate of 3.04%.
PEG = 24.51 (P/E) ÷ 3.04 (Growth) = 8.06
Frequently Asked Questions about ITW
What is the current PEG Ratio for Illinois Tool Works Inc. (ITW)?+
The current PEG Ratio for Illinois Tool Works Inc. is 8.06. A PEG ratio below 1.0 generally suggests the stock may be undervalued relative to its growth.
Is ITW stock undervalued right now?+
Based on the PEG ratio of 8.06, Illinois Tool Works Inc. appears to be potentially overvalued. Investors typically look for a PEG ratio below 1.0 to find undervalued growth stocks.
What is the PEGY Ratio for ITW?+
The PEGY ratio for Illinois Tool Works Inc. is 4.38. This metric accounts for dividend yield (2.55%), providing a more complete valuation picture.