PEG Ratio

The PEG ratio, which adjusts the price-to-earnings (P/E) multiple for the company's expected earnings growth rate, currently stands at 2.58x for ITW.

This is well above the sector median of 0.98x, placing ITW in the 80th percentile among its peers—meaning it is more expensive relative to its growth than 80% of them. Trend data for this metric is not available, with both the year-over-year and quarter-over-quarter changes labeled as N/A, so no directional insight can be drawn. The combination of a high PEG ratio (indicating a premium valuation for the expected growth) and the absence of any trend data suggests a heightened risk of overvaluation without a clear catalyst for improvement. This level, taken alone, does not signal attractive upside relative to the price paid for growth. Therefore, this metric directly supports the overall CAUTIOUS verdict, as ITW’s PEG ratio presents a cautionary note on current valuation versus its growth prospects.

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