Eaton Valuation
Is 3EC undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
0/6Valuation 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 (€356.85) is trading above our estimate of fair value (€235.21)
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.
| What is 3EC's PE Ratio? | |
|---|---|
| PE Ratio | 39x |
| Earnings | US$3.77b |
| Market Cap | US$147.01b |
| Key Statistics | |
|---|---|
| Enterprise Value/Revenue | 6.3x |
| Enterprise Value/EBITDA | 28.5x |
| PEG Ratio | 3.6x |
Price to Earnings Ratio vs Peers
How does 3EC's PE Ratio compare to its peers?
| Company | Forward PE | Estimated Growth | Market Cap |
|---|---|---|---|
| Peer Average | 34.7x | ||
SIE Siemens | 17.1x | 5.4% | €140.9b |
ENR Siemens Energy | 33.2x | 23.4% | €39.4b |
OSR OSRAM Licht | 81.3x | n/a | €4.9b |
SGL SGL Carbon | 7.3x | 17.7% | €500.1m |
3EC Eaton | 39x | 10.8% | €147.0b |
Price-To-Earnings vs Peers: 3EC is expensive based on its Price-To-Earnings Ratio (39x) compared to the peer average (34.7x).
Price to Earnings Ratio vs Industry
How does 3EC's PE Ratio compare vs other companies in the European Electrical Industry?
| 3 Companies | Price / Earnings | Estimated Growth | Market Cap |
|---|---|---|---|
| 3 Companies | Estimated Growth | Market Cap | |
|---|---|---|---|
Price-To-Earnings vs Industry: 3EC is expensive based on its Price-To-Earnings Ratio (39x) compared to the European Electrical industry average (16.1x).
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.
| Fair Ratio | |
|---|---|
| Current PE Ratio | 39x |
| Fair PE Ratio | 25.8x |
Price-To-Earnings vs Fair Ratio: 3EC is expensive based on its Price-To-Earnings Ratio (39x) compared to the estimated Fair Price-To-Earnings Ratio (25.8x).
Analyst Price Targets
What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?
| Date | Share Price | Average 1Y Price Target | Dispersion | High | Low | 1Y Actual price | Analysts |
|---|---|---|---|---|---|---|---|
| Current | €356.85 | €352.55 -1.2% | 9.9% | €407.94 | €259.34 | n/a | 24 |
| Nov ’25 | €306.70 | €326.74 +6.5% | 8.9% | €369.12 | €252.85 | n/a | 22 |
| Oct ’25 | €295.95 | €311.98 +5.4% | 8.1% | €347.81 | €252.95 | n/a | 21 |
| Sep ’25 | €270.80 | €303.68 +12.1% | 8.8% | €346.04 | €251.66 | n/a | 21 |
| Aug ’25 | €281.85 | €304.68 +8.1% | 12.3% | €352.04 | €205.74 | n/a | 22 |
| Jul ’25 | €290.00 | €309.47 +6.7% | 12.0% | €350.40 | €210.24 | n/a | 22 |
| Jun ’25 | €297.35 | €304.13 +2.3% | 12.2% | €347.21 | €208.33 | n/a | 20 |
| May ’25 | €307.30 | €299.50 -2.5% | 12.9% | €350.74 | €210.44 | n/a | 21 |
| Apr ’25 | €293.00 | €277.60 -5.3% | 12.9% | €320.00 | €194.33 | n/a | 21 |
| Mar ’25 | €269.60 | €255.60 -5.2% | 12.5% | €305.32 | €185.04 | n/a | 22 |
| Feb ’25 | €226.90 | €226.00 -0.4% | 9.9% | €253.34 | €183.58 | n/a | 19 |
| Jan ’25 | €216.50 | €216.91 +0.2% | 11.5% | €251.46 | €170.99 | n/a | 19 |
| Dec ’24 | €211.00 | €211.54 +0.3% | 10.2% | €246.08 | €170.43 | n/a | 19 |
| Nov ’24 | €202.50 | €219.24 +8.3% | 10.1% | €255.50 | €176.96 | €306.70 | 19 |
| Oct ’24 | €204.70 | €215.32 +5.2% | 10.8% | €257.01 | €176.10 | €295.95 | 20 |
| Sep ’24 | €211.50 | €205.35 -2.9% | 9.9% | €234.42 | €169.40 | €270.80 | 20 |
| Aug ’24 | €196.80 | €186.08 -5.4% | 10.0% | €213.97 | €146.59 | €281.85 | 19 |
| Jul ’24 | €184.35 | €181.04 -1.8% | 9.9% | €210.73 | €145.68 | €290.00 | 20 |
| Jun ’24 | €164.60 | €179.34 +9.0% | 8.4% | €206.79 | €148.78 | €297.35 | 18 |
| May ’24 | €150.80 | €168.69 +11.9% | 9.6% | €190.58 | €131.59 | €307.30 | 17 |
| Apr ’24 | €156.10 | €171.41 +9.8% | 9.3% | €195.30 | €135.70 | €293.00 | 17 |
| Mar ’24 | €164.28 | €169.85 +3.4% | 8.8% | €200.80 | €139.52 | €269.60 | 17 |
| Feb ’24 | €147.76 | €155.82 +5.5% | 11.1% | €181.83 | €118.14 | €226.90 | 17 |
| Jan ’24 | €146.60 | €156.92 +7.0% | 11.7% | €184.39 | €116.06 | €216.50 | 17 |
| Dec ’23 | €153.00 | €160.63 +5.0% | 11.4% | €190.18 | €119.71 | €211.00 | 18 |
| Nov ’23 | €151.68 | €165.50 +9.1% | 11.0% | €199.44 | €125.54 | €202.50 | 19 |
Analyst Forecast: Target price is less than 20% higher than the current share price.
Discover undervalued companies
Finning International
CA$5.2b
Sells, services, and rents heavy equipment, engines, and related products in Canada, Chile, Bolivia, the United Kingdom, Argentina, Ireland, and internationally.
CIH
CA$25.40
7D
1.6%
1Y
11.4%
Kajima
JP¥1.3t
Engages in civil engineering, building construction, real estate development, architectural design, and other businesses worldwide.
KAJ
JP¥16.50
7D
1.9%
1Y
15.4%
Senior
UK£588.0m
Designs, manufactures, and sells high-technology components and systems for the principal original equipment manufacturers in the aerospace, defense, land vehicle, and power and energy markets in the United States, the United Kingdom, and internationally.
1JD
UK£1.66
7D
-1.8%
1Y
-15.4%