Eaton Corporation plc

DB:3EC Stock Report

Market Cap: €131.4b

Eaton Valuation

Is 3EC undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 3EC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 3EC (€325.6) is trading above our estimate of fair value (€258.09)

Significantly Below Fair Value: 3EC is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 3EC?

Key metric: As 3EC is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 3EC. This is calculated by dividing 3EC's market cap by their current earnings.
What is 3EC's PE Ratio?
PE Ratio35.9x
EarningsUS$3.77b
Market CapUS$135.39b

Price to Earnings Ratio vs Peers

How does 3EC's PE Ratio compare to its peers?

The above table shows the PE ratio for 3EC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average35.4x
OSR OSRAM Licht
81.9xn/a€4.9b
SIE Siemens
17.8x6.1%€146.5b
ENR Siemens Energy
34.7x22.1%€41.1b
SGL SGL Carbon
7.1x17.7%€489.1m
3EC Eaton
35.9x11.0%€135.4b

Price-To-Earnings vs Peers: 3EC is expensive based on its Price-To-Earnings Ratio (35.9x) compared to the peer average (35.4x).

Price to Earnings Ratio vs Industry

How does 3EC's PE Ratio compare vs other companies in the European Electrical Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
3EC 35.9xIndustry Avg. 16.5xNo. of Companies13PE01224364860+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 3EC is expensive based on its Price-To-Earnings Ratio (35.9x) compared to the European Electrical industry average (16.5x).

Price to Earnings Ratio vs Fair Ratio

What is 3EC's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

3EC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio35.9x
Fair PE Ratio25.7x

Price-To-Earnings vs Fair Ratio: 3EC is expensive based on its Price-To-Earnings Ratio (35.9x) compared to the estimated Fair Price-To-Earnings Ratio (25.7x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst 3EC forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€325.60
€370.71
+13.9%
9.0%€426.98€265.89n/a24
Dec ’25€356.00
€352.55
-1.0%
9.9%€407.94€259.34n/a24
Nov ’25€306.70
€326.74
+6.5%
8.9%€369.12€252.85n/a22
Oct ’25€295.95
€311.98
+5.4%
8.1%€347.81€252.95n/a21
Sep ’25€270.80
€305.71
+12.9%
8.8%€348.35€253.34n/a21
Aug ’25€281.85
€304.68
+8.1%
12.3%€352.04€205.74n/a22
Jul ’25€290.00
€309.47
+6.7%
12.0%€350.40€210.24n/a22
Jun ’25€297.35
€304.13
+2.3%
12.2%€347.21€208.33n/a20
May ’25€307.30
€299.50
-2.5%
12.9%€350.74€210.44n/a21
Apr ’25€293.00
€277.60
-5.3%
12.9%€320.00€194.33n/a21
Mar ’25€269.60
€255.60
-5.2%
12.5%€305.32€185.04n/a22
Feb ’25€226.90
€226.00
-0.4%
9.9%€253.34€183.58n/a19
Jan ’25€216.50
€216.91
+0.2%
11.5%€251.46€170.99€321.2519
Dec ’24€211.00
€211.54
+0.3%
10.2%€246.08€170.43€356.0019
Nov ’24€202.50
€219.24
+8.3%
10.1%€255.50€176.96€306.7019
Oct ’24€204.70
€215.32
+5.2%
10.8%€257.01€176.10€295.9520
Sep ’24€211.50
€205.35
-2.9%
9.9%€234.42€169.40€270.8020
Aug ’24€196.80
€186.08
-5.4%
10.0%€213.97€146.59€281.8519
Jul ’24€184.35
€181.04
-1.8%
9.9%€210.73€145.68€290.0020
Jun ’24€164.60
€179.34
+9.0%
8.4%€206.79€148.78€297.3518
May ’24€150.80
€168.69
+11.9%
9.6%€190.58€131.59€307.3017
Apr ’24€156.10
€171.41
+9.8%
9.3%€195.30€135.70€293.0017
Mar ’24€164.28
€169.85
+3.4%
8.8%€200.80€139.52€269.6017
Feb ’24€147.76
€155.82
+5.5%
11.1%€181.83€118.14€226.9017
Jan ’24€146.60
€156.92
+7.0%
11.7%€184.39€116.06€216.5017

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/01/05 06:37
End of Day Share Price 2025/01/03 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Eaton Corporation plc is covered by 56 analysts. 26 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Igor MaryasisAegis Capital Corporation
John EadeArgus Research Company
Richard RadbourneAtlantic Equities LLP