NYSE
ETN
Last Price
US $451.51
KEY FIGURES
MKT CAP
$175.3B
EPS
TTM
$9.86
PEG
TTM
-
P/E
TTM
45.80x
P/S
TTM
5.84x
YIELD
0.96%
GROWTH
Revenue Y/Y
Cash Flow (DCF)
Fair Value
Market $451.51
-60.71%
Default assumptions
EBITDA Multiple
Fair Value
Market $451.51
-82.26%
Default assumptions
Valuation
Financial
Performance
Financial stability - Cash flow debt coverage.
Eaton Corporation plc cash flow to debt ratio of 40.04% indicates that the company generates enough cash to cover its debts. This level indicates strong financial health.
Financial stability - Healthy cash flow growth.
Eaton Corporation plc's free cash flow has increased 0.97% from $3.52G last year to $3.55G, signaling increasing performance
Financial risk - Healthy debt to equity ratio.
Eaton Corporation plc's debt to equity ratio is 1.05, which means that the company's assets are unhealthy financed, signaling financial risk. READ MORE: A ratio over 0.60 means the company finances its assets with debt, signaling financial risk. If ratio is negative, the company spent its own equity and risks bankruptcy
Financial risk - Healthy debt to equity ratio development.
Eaton Corporation plc's debt has increased relative to shareholder equity from 0.53 last year to 1.05 today, signaling weakened financials
Financial stability - Net debt/EBITDA.
Eaton Corporation plc has a net debt to EBITDA ratio of 1.77x, which is below the 3.00x threshold, indicating healthy leverage and financial stability
Financial stability - ICR.
Eaton Corporation plc's interest coverage ratio of 11.96 indicates that earnings with good margin can cover interest payments on company debt
Financial risk - Profit margin growth.
Eaton Corporation plc's profit margin has decreased (-16.36%) in the last year from 15.25% to 12.76%, signaling decreasing performance
Financial stability - Short term assets vs short term liabilities.
Eaton Corporation plc's short-term assets of $12.36G exceed its short-term liabilities of $9.37G
Increasing performance - ROA.
Eaton Corporation plc's return on assets of 6.82% is higher than the 5.00% threshold, indicating efficient asset utilization
Increasing performance - Absolute return on equity.
Eaton Corporation plc's return on equity of 19.56%, is higher than 15.00%, indicating good performance
Increasing performance - Earnings quality.
Eaton Corporation plc's operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation
Increasing performance - Earnings stability.
Eaton Corporation plc had positive net income in 5.00 out of 5 years, indicating stable and consistent earnings
Increasing performance - Free cash flow.
Eaton Corporation plc has positive free cash flow, indicating the company generates cash after capital expenditures
Increasing performance - FCF yield.
Eaton Corporation plc has a free cash flow yield of 2.03%, which is above the 2.00% threshold, indicating strong cash generation relative to market value
Increasing performance - Healthy earnings growth.
Eaton Corporation plc's yearly earnings has increased 7.78% since last year from $3.79G to $4.09G, signaling increasing performance
Increasing performance - Healthy revenue growth.
Eaton Corporation plc's yearly revenue has increased 10.33% since last year from $24.88G to $27.45G, signaling increasing performance
Increasing performance - ROIC.
ROIC 9.09% (Source: FMP key-metrics). In the 5–10% partial-credit band. Score: 1 of 2. This band sits within the typical US weighted-average cost of capital range. Methodology choice can change the conclusion: under FMP's invested-capital definition the company is at or near its cost of capital; under narrower operating-capital definitions the same company may score higher. Invested capital here includes equity, non-current liabilities, and short-term debt. Cash is not subtracted. See methodology.
Increasing performance - 3-year revenue CAGR.
Eaton Corporation plc's 3-year revenue CAGR of 9.77% is positive, indicating growing revenue over the past 3 years
Increasing performance - Revenue consistency.
Eaton Corporation plc had revenue growth in 5.00 out of 5 years, indicating consistent revenue performance
Increasing performance - ROE consistency.
Eaton Corporation plc had positive ROE in 5.00 out of 5 years, indicating consistent and reliable returns on equity
Overvalued - DCF valuation.
Eaton Corporation plc is overvalued relative to its fair value price of 177.41 based on Discounted Cash Flow model
Overvalued - Earnings yield.
Eaton Corporation plc has an earnings yield of 2.18%, which is below the 4.00% threshold, indicating the stock may be expensive relative to its earnings
Overvalued - EBITDA valuation.
Eaton Corporation plc is overvalued relative to its fair value price of 80.12 based on EBITDA multiple model
Overvalued - EV/EBITDA.
Eaton Corporation plc has an EV/EBITDA ratio of 31.25x, which exceeds the 20.00x threshold, indicating the stock may be overvalued relative to its operating earnings
Overvalued - PEG ratio value.
Eaton Corporation plc has no meaningful EPS growth rate; PEG ratio cannot be computed.
Overvalued - P/B ratio.
Eaton Corporation plc has a price-to-book ratio of 8.64x, which exceeds the 5.00x threshold, indicating the stock may be overvalued relative to its book value
Undervalued - P/S ratio.
Eaton Corporation plc has a price-to-sales ratio of 5.84x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue
Profit margin
Current Ratio
Capital Returns
19.56%
Return on equity
ROIC: 9.09%
Valuation History
45.5X
Price to Earnings
EV/EBITDA: 30.4X
Cash flow
Profit margin
8.98%
(FY vs FY)
EBITDA Y/Y
16.44%
(FY vs FY)
Cash flow Y/Y
6.82%
(FY vs FY)
Base valuations use default assumptions. Customize in the Valuator.