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 25.03 is considered Fairly compared with the five-year average of 23.25. The fair price of Eaton Corporation PLC (ETN) is between 317.21 to 404.12 according to relative valuation methord.
Relative Value
Fair Zone
317.21-404.12
Current Price：339.80
Fair
25.29
PE
1Y
3Y
5Y
Trailing
Forward
19.77
EV/EBITDA
Eaton Corporation PLC. (ETN) has a current EV/EBITDA of 19.77. The 5-year average EV/EBITDA is 18.69. The thresholds are as follows: Strongly Undervalued below 13.16, Undervalued between 13.16 and 15.93, Fairly Valued between 21.46 and 15.93, Overvalued between 21.46 and 24.23, and Strongly Overvalued above 24.23. The current Forward EV/EBITDA of 19.77 falls within the Historic Trend Line -Fairly Valued range.
23.09
EV/EBIT
Eaton Corporation PLC. (ETN) has a current EV/EBIT of 23.09. The 5-year average EV/EBIT is 22.60. The thresholds are as follows: Strongly Undervalued below 16.74, Undervalued between 16.74 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 23.09 falls within the Historic Trend Line -Fairly Valued range.
4.40
PS
Eaton Corporation PLC. (ETN) has a current PS of 4.40. The 5-year average PS is 3.68. The thresholds are as follows: Strongly Undervalued below 1.82, Undervalued between 1.82 and 2.75, Fairly Valued between 4.61 and 2.75, Overvalued between 4.61 and 5.54, and Strongly Overvalued above 5.54. The current Forward PS of 4.40 falls within the Historic Trend Line -Fairly Valued range.
22.71
P/OCF
Eaton Corporation PLC. (ETN) has a current P/OCF of 22.71. The 5-year average P/OCF is 21.92. The thresholds are as follows: Strongly Undervalued below 13.91, Undervalued between 13.91 and 17.92, Fairly Valued between 25.92 and 17.92, Overvalued between 25.92 and 29.92, and Strongly Overvalued above 29.92. The current Forward P/OCF of 22.71 falls within the Historic Trend Line -Fairly Valued range.
28.37
P/FCF
Eaton Corporation PLC. (ETN) has a current P/FCF of 28.37. The 5-year average P/FCF is 26.63. The thresholds are as follows: Strongly Undervalued below 16.20, Undervalued between 16.20 and 21.41, Fairly Valued between 31.85 and 21.41, Overvalued between 31.85 and 37.07, and Strongly Overvalued above 37.07. The current Forward P/FCF of 28.37 falls within the Historic Trend Line -Fairly Valued range.
Eaton Corporation PLC (ETN) has a current Price-to-Book (P/B) ratio of 6.92. Compared to its 3-year average P/B ratio of 5.89 , the current P/B ratio is approximately 17.49% higher. Relative to its 5-year average P/B ratio of 5.01, the current P/B ratio is about 38.01% higher. Eaton Corporation PLC (ETN) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 2.63%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 2.88% , the current FCF yield is about -100.00% lower.
6.99
P/B
Median3y
5.89
Median5y
5.01
2.55
FCF Yield
Median3y
2.63
Median5y
2.88
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
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of ETN increased by 2.13% 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 1.29%to the performance.
Overall, the performance of ETN in the past 1 year is driven by Revenue Growth. Which is more sustainable.
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FAQ
Is Eaton Corporation PLC (ETN) currently overvalued or undervalued?
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