Illinois Tool Works Inc

ITW: XNYS (USA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	$476.00	Vpdsd	Ybyqyztfh

Illinois Tool Works Earnings: Enterprise Initiatives Drive Strong Margin Expansion

Joshua Aguilar

Oct 25, 2023

We raise our fair value estimate for narrow-moat Illinois Tool Works to $211 from $203 following strong third-quarter results. The raise was due to about a 20-basis-point rise in our midcycle margin and slightly higher stage-two growth. While Illinois Tool Works’ stock historically trades at a premium to our fair value, we think it now trades within a realm of reasonableness. We value ITW at 19 times our estimated 2024 GAAP EPS.

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