The historical rank and industry rank for Illinois Tool Works's Shiller PE Ratio or its related term are showing as below:
ITW'
s Shiller PE Ratio Range Over the Past 10 Years
Min: 19.16 Med: 27.65 Max: 37.58
Current: 28.43
During the past years, Illinois Tool Works's highest Shiller PE Ratio was 37.58. The lowest was 19.16. And the median was 27.65.
ITW's Shiller PE Ratio is ranked worse than 55.45% of 1753
companies
in the Industrial Products industry
Industry Median: 26.08
vs ITW: 28.43
E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years.
Illinois Tool Works's adjusted earnings per share data for the three months ended in Mar. 2024 was $2.730. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $8.81 for the trailing ten years ended in Mar. 2024.
Shiller PE for Stocks: The True Measure of Stock Valuation
Illinois Tool Works Shiller PE Ratio Historical Data
The historical data trend for Illinois Tool Works's Shiller PE Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of Illinois Tool Works's Shiller PE Ratio
For the Specialty Industrial Machinery subindustry, Illinois Tool Works's Shiller PE Ratio, along with its competitors' market caps and Shiller PE Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Illinois Tool Works's Shiller PE Ratio Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, Illinois Tool Works's Shiller PE Ratio distribution charts can be found below:
* The bar in red indicates where Illinois Tool Works's Shiller PE Ratio falls into.
Illinois Tool Works Shiller PE Ratio Calculation
For Shiller PE Ratio, the earnings of the past 10 years are inflation-adjusted and averaged. The result is used for P/E calculation. Since it looks at the average over the last 10 years, the Shiller PE Ratio is also called PE10.
The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The same calculation is applied here to individual companies.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Add all the adjusted EPS together and divide 10 will get our E10.
Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.
Illinois Tool Works (NYSE:ITW) Shiller PE Ratio Explanation
Compared with the regular PE Ratio, which works poorly for cyclical businesses, the Shiller PE Ratio smoothed out the fluctuations of profit margins during business cycles. Therefore it is more accurate in reflecting the valuation of the company.
If a company has consistent business performance, the Shiller PE Ratio should give similar results to regular PE Ratio.
Compared with the PS Ratio, the Shiller PE Ratio makes the comparison between different industries more meaningful.
Be Aware
Shiller PE Ratio assumes that over the long term, businesses and profitability revert to their means. If a company's business model does not work in the future compared with the past, Shiller PE Ratio and PS Ratio will give false valuations.
Illinois Tool Works Shiller PE Ratio Related Terms
Thank you for viewing the detailed overview of Illinois Tool Works's Shiller PE Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Illinois Tool Works (Illinois Tool Works) Business Description
Illinois Tool Works is a diversified global manufacturer that produces specialized industrial equipment, consumables, and related services. The firm operates 87 global divisions through seven distinct operating segments: automotive OEM, construction products, food equipment, specialty products, test/measurement and electronics, polymers and fluids, and welding. About half of its revenue comes from its operations in North America, with the remainder originating from international markets. ITW takes a bottom-up and decentralized approach to portfolio management, with the exception that each segment must apply its 80/20 operating process modeled on the Pareto principle.
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