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Illinois Tool Works Inc.
Industrials · Specialty Industrial Machinery
Made on Jul 13, 2026
Price at call $268.81
6-month call Neutral -0.9%
Target by Jan 2027 $266.38
Great value below $215.00
Model v0.3.0

Projection vs Actual (6M history + forecast)

Our straight 6-month prediction (bold) with a textured realism line, and the actual price overlaid from the prediction date forward.

Forecast

One directional 6-month call and the six monthly points we'll be scored against. Predicted Jul 13, 2026 3:35 am
Neutral ITW trends range-bound to $266.38 (-0.9% from $268.81) by Jan 2027.
Monthmonths after the call Datewhen it gets graded Predictedthe claim: closing price Current priceactual close — fills in over time Predicted returnpredicted vs $268.81 at call
Prediction made Jul 13, 2026 $268.81 at call
M1 Aug 13, 2026 $268.41 -0.2%
What actually happened: closed $292.51 on Aug 12, 2026 = +8.8% vs the call (predicted -0.2%)  ·  direction MISS (called flat, was up)  ·  off by 9.0 pp  ·  accuracy 4/10  ·  S&P +3.1% over the same window — lagged it
M2 Sep 13, 2026 $268.00 -0.3%
M3 Oct 13, 2026 $267.60 -0.5%
M4 Nov 13, 2026 $267.19 -0.6%
M5 Dec 13, 2026 $266.79 -0.8%
M6 Jan 13, 2027 $266.38 -0.9%

Deserved value (DCF/composite) is $256.11; over 6 months we project closing only part-way to it (reach 19.1%). Value-only — see Not Yet Modeled below.

Weaknesses

0 blocking · 1 degraded · 1 note — follow the chain top-down (cause → effect).
  • Degraded
    Valuation is extremely fragile — almost no scenarios support the current price
    upstream:valuation-synthesis
  • Note
    Valuation anchor absent: dcf.
    anchor:dcf

Equation Inputs

Everything feeding the v0.3.0 model — value anchors, the stock's own price behaviour, and the tunable knobs.

Value anchors (from deep analysis)

Price at call$268.81
Composite fair value$215.22
Signal-adjusted fair value$198.65
DCF fair value
Anchored-PE fair value$319.96
Buy-below (value lens)$215.00
Value net score-77
Value confidence7 / 10
Quality net score+95
Memo confidence8 / 10
Deserved value (base)$215.22
Quality tilt+19%
Deserved value (used)$256.11
Coherence (value × quality)0.50

Price behaviour (trailing — shapes the realism line)

Realized volatility (annualized) 1m 21.8%  3m 20.6%  6m 22.4%  
Daily σ (realism noise)1.3%
Beta vs S&P 500 1m 0.99  3m 0.45  5m 0.65  
Trailing 6-month return8.8%

Knobs (equation params)

Deserved wt · DCF0.5
Quality tilt cap (±)0.2
Horizon reach (6mo)0.45
Coherence floor (conflict)0.5
Conviction gain / pt0.06
Realism mean-reversion φ0.85
Conviction floor0.4
Deserved wt · composite0.5
Realism vol window3m
Neutral band (%)5
Horizon (months)6
Realism σ fallback0.015

Version & Tech Chain

What produced this prediction — stamped on the record so versions can be compared by success rate later.
Model v0.3.0 #6bd904191719

Tech composition (what this version is built from)

#ProcessKindGroup
1 Synthesis valuation-synthesis deterministic final
2 Scenario Analysis scenario-valuation deterministic valuation
3 Valuation / Mispricing ext-lens-value llm extended
4 Company Quality ext-lens-quality llm extended
5 Forensic Memo (combiner) ext-forensic-memo llm extended
6 Classification company-classification llm foundation
7 Live Quote fmp-quote data market-data

Inputs used (the runs that fed this prediction)

Upstream processRanLagRun id
company-classification Jul 13, 2026 freshest ITW-20260713-031333-a446
ext-forensic-memo Jul 13, 2026 freshest ext-ITW-20260713-032730-f1b5
ext-lens-quality Jul 13, 2026 freshest ext-ITW-20260713-032730-f1b5
ext-lens-value Jul 13, 2026 freshest ext-ITW-20260713-032730-f1b5
scenario-valuation Jul 13, 2026 freshest ITW-20260713-031333-a446
valuation-synthesis Jul 13, 2026 freshest ITW-20260713-031333-a446

Inputs flagged 7d+ behind the freshest one may be stale relative to the rest of the analysis.

Saved History

2 frozen snapshots — the record we score once predictions mature.
MadeModelCallAt callTargetExp.Eval due
Aug 11, 2026 v0.6.0 Bear $294.52 $270.00 -8.3% Feb 2027 view
Jul 13, 2026 v0.3.0 Neutral $268.81 $266.38 -0.9% Jan 2027 viewing

Not Yet Modeled

What this v0.3.0 forecast deliberately ignores — the work ahead, in plain sight.
  • Signal-adjusted fair value ($198.65) — the red-flag-adjusted anchor isn't the primary input yet (we use the raw DCF/composite blend, which double-counts DCF).
  • Recent momentum / drift — the line takes off straight; the trailing 6-month move (8.8%) doesn't bend the slope.
  • Market beta — computed (1–5mo) for context but does not condition the path.
  • Earnings dates, catalysts, and known events — not modeled.
  • Macro regime & sector rotation — not modeled.
  • Horizon is a fixed 6-month assumption, not a modeled time-to-target.
  • Outcome scoring — predictions aren't yet graded against realized price once the evaluation date passes.