ITWCAUTIOUS

ITW PEG Ratio Analysis

3.10x

Updated 273h ago·SEC filings & market data

Key Takeaway

The PEG ratio divides a stock’s price-to-earnings multiple by its expected earnings growth rate; at 3.10x, ITW’s price is high relative to its anticipated growth.

Sector Performance

84th percentile

ITW

3.10x

Sector Median

0.77x

Sector Avg

2.65x

Prior Period

2.52x(Aug 2026)

↓ Declining
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Deep Analysis

The PEG ratio divides a stock’s price-to-earnings multiple by its expected earnings growth rate; at 3.10x, ITW’s price is high relative to its anticipated growth.

This sits well above the sector median of 0.81x, placing the stock in the 84th percentile among peers, meaning most comparable companies offer more growth for the price. The metric is increasing, up 23.0% quarter over quarter, while the year-over-year change is N/A; recent readings of 3.10x, 2.52x, and 2.58x confirm the upward path. A high and rising PEG ratio suggests that investors are paying a growing premium for ITW’s growth, which raises valuation risk if growth disappoints. This aligns with the overall CAUTIOUS verdict, as the combination of a steep multiple and worsening trend supports a guarded stance.

Frequently Asked Questions

What does the PEG Ratio tell investors about ITW?

The PEG ratio adjusts P/E for expected growth. A PEG below 1.0 may signal undervaluation; above 2.0 may suggest the growth story is priced in.

How is the PEG Ratio calculated?

PEG Ratio is calculated as: P/E Ratio / EPS Growth Rate.

Who are ITW's closest peers by PEG Ratio?

The closest peers by PEG Ratio include: FORM (0.49x), HII (0.48x), CPRI (0.47x), CBOE (0.46x), CELH (0.46x).

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Learn More About PEG Ratio

PEG Ratio Explained: The Metric That Fixes P/E's Biggest Flaw

P/E tells you what you're paying. PEG tells you whether it's worth it. Here's how to calculate it, interpret it, and why most investors use it wrong.

The Formula

P/E Ratio / EPS Growth Rate

Why It Matters

The PEG ratio adjusts P/E for expected growth. A PEG below 1.0 may signal undervaluation; above 2.0 may suggest the growth story is priced in.

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Closest Sector Peers

FO
FORM
0.49x
HI
HII
0.48x
CP
CPRI
0.47x
CB
CBOE
0.46x
CE
CELH
0.46x
View all 353 peers

ITW

3.10x

Sector Median

0.77x

Sector Avg

2.65x

How ITW's PEG Ratio compares to sector peers.

Not financial advice. Research tool only. Data may be delayed.