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Is this Large Market Cap Stock target price reasonable for Illinois Tool Works Inc. (NYSE:ITW)?

The company in question is, Illinois Tool Works Inc. (NYSE:ITW) currently with a stock price of 118.91 (-0.07% today). The market cap for Illinois Tool Works Inc. is 42233.12, and is in the sector Industrial Goods, and Diversified Machinery industry. The target price for Illinois Tool Works Inc. is 118.5. Currently Illinois Tool Works Inc. is trading with a P/E of 22.15, and a forward P/E of 19.4. Average volume for Illinois Tool Works Inc. is 1482.32 and so far today it is 516460.

Performance in the last year for Illinois Tool Works Inc. has been 35.47%. For EPS growth, Illinois Tool Works Inc. has seen a growth of 9.80%, and is looking to grow in the next year to 9.03%. More long term stats show that EPS growth has been 12.20% over the last five years and could be 8.28% for the next five years. Illinois Tool Works Inc. has seen sales growth quarter over quarter at -0.10%, with EPS growth quarter over quarter at 12.40%. The 20-day simple moving average is 7.59%, with the 200-day simple moving average coming to 19.95%.

Since the IPO date for Illinois Tool Works Inc. on the 11/5/1987, Illinois Tool Works Inc. has seen performance year to date to be 29.81%. With Illinois Tool Works Inc. trading at 118.91, the dividend yield is 2.19%, and the EPS is 5.37.

So could Illinois Tool Works Inc., be undervalued? Well as said before P/E is 22.15. The PEG is 2.68, P/S is 3.17 and the P/B is at 8.58. The P/cash is 17.93, with P/free cash flow at 30.38.

Illinois Tool Works Inc. ability to deal with debt shows that the current ratio is 2.2, and the quick ratio is 1.8. This is with long term debt/equity at 1.27, and total debt/equity at 1.45.

In terms of margins, Illinois Tool Works Inc. has a gross margin of 41.80%, an operating margin of 22.20% and a profit margin of 14.70%.Payout ratio for Illinois Tool Works Inc. is 40.70%. Return on assets come to 12.50% with return on investment coming to 16.20%.

Insider ownership for Illinois Tool Works Inc., is at 0.20% and institutional ownership comes to 78.80%. Outstanding shares are at 354.93. While shares float is 354.36. The float short is currently 2.03%, and short ratio is 4.85.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Tony Dabbs

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