ITWCAUTIOUS

EV/EBITDA

18.4x

Updated 318h ago

Sector Performance

67th percentile

ITW

18.4x

Sector Median

13.7x

Sector Avg

18.4x

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Deep Analysis

The current EV/EBITDA of 18.4x means that for every dollar of earnings before interest, taxes, depreciation, and amortization, the company’s enterprise value is $18.40 — a measure of how expensive the stock is relative to its operating cash flow.

This is above the sector median of 13.9x, placing ITW in the 68th percentile among its peers, indicating a premium valuation. A year-over-year change is not available, but the metric rose 2.6% quarter-over-quarter from 17.9x to 18.4x, based on the two most recent data points. The combination of a high current level and a slight upward trend suggests increasing valuation risk, as the stock is already trading at a premium and becoming more expensive. This directly supports the overall CAUTIOUS verdict, since the elevated multiple offers less margin of safety compared to the sector.

Frequently Asked Questions

What does the EV/EBITDA tell investors about ITW?

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.

How is the EV/EBITDA calculated?

EV/EBITDA is calculated as: Enterprise Value / EBITDA.

Who are ITW's closest peers by EV/EBITDA?

The closest peers by EV/EBITDA include: LSPD (-24.2x), BRZE (-24.5x), EVGO (-25.7x), NIO (-36.8x), SNAP (-38.8x).

The Formula

Enterprise Value / EBITDA

Why It Matters

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.