ETN PE Ratio & Valuation,Is ETN Overvalued

ETN Relative Valuation

ETN's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, ETN is overvalued; if below, it's undervalued.

Historical Valuation

Eaton Corporation PLC (ETN) is now in the Fair zone, suggesting that its current forward PE ratio of 24.73 is considered Fairly compared with the five-year average of 23.25. The fair price of Eaton Corporation PLC (ETN) is between 320.55 to 406.87 according to relative valuation methord.

Relative Value

Fair Zone

320.55-406.87

Current Price：333.21

Fair

24.84

19.50

EV/EBITDA

Eaton Corporation PLC. (ETN) has a current EV/EBITDA of 19.50. The 5-year average EV/EBITDA is 18.71. The thresholds are as follows: Strongly Undervalued below 13.18, Undervalued between 13.18 and 15.94, Fairly Valued between 21.47 and 15.94, Overvalued between 21.47 and 24.24, and Strongly Overvalued above 24.24. The current Forward EV/EBITDA of 19.50 falls within the Historic Trend Line -Fairly Valued range.

22.88

EV/EBIT

Eaton Corporation PLC. (ETN) has a current EV/EBIT of 22.88. The 5-year average EV/EBIT is 22.60. The thresholds are as follows: Strongly Undervalued below 16.75, Undervalued between 16.75 and 19.67, Fairly Valued between 25.52 and 19.67, Overvalued between 25.52 and 28.45, and Strongly Overvalued above 28.45. The current Forward EV/EBIT of 22.88 falls within the Historic Trend Line -Fairly Valued range.

4.35

Eaton Corporation PLC. (ETN) has a current PS of 4.35. The 5-year average PS is 3.69. The thresholds are as follows: Strongly Undervalued below 1.83, Undervalued between 1.83 and 2.76, Fairly Valued between 4.62 and 2.76, Overvalued between 4.62 and 5.55, and Strongly Overvalued above 5.55. The current Forward PS of 4.35 falls within the Historic Trend Line -Fairly Valued range.

22.56

P/OCF

Eaton Corporation PLC. (ETN) has a current P/OCF of 22.56. The 5-year average P/OCF is 21.95. The thresholds are as follows: Strongly Undervalued below 13.96, Undervalued between 13.96 and 17.95, Fairly Valued between 25.94 and 17.95, Overvalued between 25.94 and 29.94, and Strongly Overvalued above 29.94. The current Forward P/OCF of 22.56 falls within the Historic Trend Line -Fairly Valued range.

28.17

P/FCF

Eaton Corporation PLC. (ETN) has a current P/FCF of 28.17. The 5-year average P/FCF is 26.68. The thresholds are as follows: Strongly Undervalued below 16.29, Undervalued between 16.29 and 21.49, Fairly Valued between 31.88 and 21.49, Overvalued between 31.88 and 37.08, and Strongly Overvalued above 37.08. The current Forward P/FCF of 28.17 falls within the Historic Trend Line -Fairly Valued range.

Eaton Corporation PLC (ETN) has a current Price-to-Book (P/B) ratio of 6.84. Compared to its 3-year average P/B ratio of 5.92 , the current P/B ratio is approximately 15.43% higher. Relative to its 5-year average P/B ratio of 5.03, the current P/B ratio is about 35.84% higher. Eaton Corporation PLC (ETN) has a Forward Free Cash Flow (FCF) yield of approximately 2.58%. Compared to its 3-year average FCF yield of 2.63%, the current FCF yield is approximately -2.10% lower. Relative to its 5-year average FCF yield of 2.86% , the current FCF yield is about -10.04% lower.

6.87

P/B

Median3y

5.92

Median5y

5.03

2.58

FCF Yield

Median3y

2.63

Median5y

2.86

Competitors Valuation Multiple

The average P/S ratio for ETN's competitors is , providing a benchmark for relative valuation. Eaton Corporation PLC Corp (ETN) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of 10.13%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of ETN increased by 0.40% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 6.35B to 6.99B.

The secondary factor is the P/E Change, contributed -0.44%to the performance.

Overall, the performance of ETN in the past 1 year is driven by Revenue Growth. Which is more sustainable.

10.13%

6.35B → 6.99B

Revenue Growth

-9.29%

15.93 → 14.45

Margin Expansion

-0.44%

33.50 → 33.36

P/E Change

0.40%

331.87 → 333.21

Mkt Cap Growth

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Frequently Asked Questions

Is Eaton Corporation PLC (ETN) currently overvalued or undervalued?

What is Eaton Corporation PLC (ETN) fair value?

ETN's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average , adjusted by weights. The fair price of Eaton Corporation PLC (ETN) is between 320.55 to 406.87 according to relative valuation methord.

How does ETN's valuation metrics compare to the industry average?

What is the current P/B ratio for Eaton Corporation PLC (ETN) as of Dec 16 2025?

As of Dec 16 2025, Eaton Corporation PLC (ETN) has a P/B ratio of 6.84. This indicates that the market values ETN at 6.84 times its book value.

What is the current FCF Yield for Eaton Corporation PLC (ETN) as of Dec 16 2025?

As of Dec 16 2025, Eaton Corporation PLC (ETN) has a FCF Yield of 2.58%. This means that for every dollar of Eaton Corporation PLC’s market capitalization, the company generates 2.58 cents in free cash flow.

What is the current Forward P/E ratio for Eaton Corporation PLC (ETN) as of Dec 16 2025?

As of Dec 16 2025, Eaton Corporation PLC (ETN) has a Forward P/E ratio of 24.73. This means the market is willing to pay $24.73 for every dollar of Eaton Corporation PLC’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for Eaton Corporation PLC (ETN) as of Dec 16 2025?

As of Dec 16 2025, Eaton Corporation PLC (ETN) has a Forward P/S ratio of 4.35. This means the market is valuing ETN at $4.35 for every dollar of expected revenue over the next 12 months.

ETN Valuation