Eaton Corporation plc (ETN) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-50.1%

$185.16

vs $370.95 price

Levered DCF

$154.12

After debt service

Piotroski score

6 / 9

Average

Altman Z-score

3.6

Safe zone

Rating

B-

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	30.36×	34.79×	29.88×	25.4×	32.12×	34.23×	17.94×	13.9×
P/B	6.37×	7.14×	5.05×	3.67×	4.2×	3.24×	2.47×	1.85×
P/S	4.5×	5.3×	4.14×	3.02×	3.51×	2.71×	1.86×	1.38×
EV / EBITDA	21.64×	25.08×	21.25×	18.06×	19.57×	20.25×	12.93×	10.3×
Gross margin	37.6%	38.2%	36.4%	33.3%	32.2%	30.5%	33.0%	32.9%
Operating margin	19.1%	19.6%	17.2%	15.6%	14.6%	13.0%	14.3%	13.8%
Net margin	14.9%	15.3%	13.9%	11.9%	10.9%	7.9%	10.3%	9.9%
Current ratio	1.32×	1.5×	1.51×	1.38×	1.04×	1.56×	1.7×	1.47×
Debt / equity	0.57×	0.53×	0.51×	0.53×	0.54×	0.56×	0.54×	0.47×
Interest coverage	19.81×	33.79×	19.21×	36.83×	19.93×	10.5×	12.97×	11×
Dividend yield	1.3%	1.1%	1.4%	2.1%	1.8%	2.4%	3.0%	3.9%
Payout ratio	39.8%	39.5%	42.9%	52.8%	56.9%	83.3%	54.3%	53.6%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	21.1%	20.5%	16.9%	14.5%	13.1%	9.4%	13.7%	13.3%
Return on invested capital	13.1%	13.0%	10.6%	9.5%	7.4%	7.0%	9.3%	9.9%
Return on assets	9.9%	9.9%	8.4%	7.0%	6.3%	4.4%	6.7%	6.9%
Free cash flow yield	2.9%	2.7%	3.0%	3.1%	2.3%	5.3%	7.2%	7.0%
Earnings yield	3.3%	2.9%	3.3%	3.9%	3.1%	2.9%	5.6%	7.2%
Enterprise value	$134.2B	$141.2B	$105.4B	$71.4B	$77.5B	$56.3B	$48B	$37.1B
Net debt / EBITDA	1.7×	1.65×	1.88×	2.23×	2.18×	2.86×	2.23×	2.01×
Cash conversion cycle (days)	83	81	80	81	66	63	76	82