Eaton Corporation plc

NYSE:ETN Stock Report

Market Cap: US$124.6b

Eaton Valuation

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

Valuation Score

1/6

Valuation Score 1/6

  • 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 ETN when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Discounted Cash Flow
Simply Wall St
US$251.65
Fair Value
25.5% overvalued intrinsic discount
24
Number of Analysts

Below Fair Value: ETN ($315.85) is trading above our estimate of fair value ($251.65)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for ETN. This is calculated by dividing ETN's market cap by their current earnings.
What is ETN's PE Ratio?
PE Ratio32.9x
EarningsUS$3.79b
Market CapUS$124.59b

Price to Earnings Ratio vs Peers

How does ETN's PE Ratio compare to its peers?

The above table shows the PE ratio for ETN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average43.8x
EMR Emerson Electric
35.3x12.7%US$70.4b
AME AMETEK
30.7x7.7%US$41.7b
VRT Vertiv Holdings Co
77.2x26.8%US$44.7b
ROK Rockwell Automation
32x10.5%US$30.6b
ETN Eaton
32.9x10.7%US$124.6b

Price-To-Earnings vs Peers: ETN is good value based on its Price-To-Earnings Ratio (32.9x) compared to the peer average (43.8x).

Price to Earnings Ratio vs Industry

How does ETN's PE Ratio compare vs other companies in the US Electrical Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
CGEH Capstone Green Energy Holdings
1xn/aUS$14.68m
KRFG OneSolution Technology
0.8xn/aUS$1.33m
No more companies available in this PE range
ETN 32.9xIndustry Avg. 26.7xNo. of Companies6PE020406080100+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: ETN is expensive based on its Price-To-Earnings Ratio (32.9x) compared to the US Electrical industry average (26.7x).

Price to Earnings Ratio vs Fair Ratio

What is ETN'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.

ETN PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio32.9x
Fair PE Ratio32.8x

Price-To-Earnings vs Fair Ratio: ETN is expensive based on its Price-To-Earnings Ratio (32.9x) compared to the estimated Fair Price-To-Earnings Ratio (32.8x).

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 ETN forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$315.85
US$374.16
+18.5%
8.0%US$418.18US$288.00n/a24
Jan ’26US$331.87
US$381.66
+15.0%
8.7%US$440.00US$274.00n/a25
Dec ’25US$375.42
US$372.48
-0.8%
9.9%US$431.00US$274.00n/a24
Nov ’25US$335.00
US$354.08
+5.7%
8.9%US$400.00US$274.00n/a22
Oct ’25US$327.58
US$345.34
+5.4%
8.1%US$385.00US$280.00n/a21
Sep ’25US$306.93
US$337.87
+10.1%
8.8%US$385.00US$280.00n/a21
Aug ’25US$297.88
US$333.20
+11.9%
12.3%US$385.00US$225.00n/a22
Jul ’25US$312.37
US$331.20
+6.0%
12.0%US$375.00US$225.00n/a22
Jun ’25US$332.85
US$328.47
-1.3%
12.2%US$375.00US$225.00n/a20
May ’25US$312.03
US$320.22
+2.6%
12.9%US$375.00US$225.00n/a21
Apr ’25US$312.03
US$299.98
-3.9%
12.9%US$345.80US$210.00n/a21
Mar ’25US$293.70
US$276.27
-5.9%
12.5%US$330.00US$200.00n/a22
Feb ’25US$264.57
US$246.22
-6.9%
9.9%US$276.00US$200.00US$326.4419
Jan ’25US$240.82
US$237.21
-1.5%
11.5%US$275.00US$187.00US$331.8719
Dec ’24US$230.46
US$232.11
+0.7%
10.2%US$270.00US$187.00US$375.4219
Nov ’24US$214.83
US$231.68
+7.8%
10.1%US$270.00US$187.00US$335.0019
Oct ’24US$213.28
US$226.20
+6.1%
10.8%US$270.00US$185.00US$327.5820
Sep ’24US$233.67
US$224.25
-4.0%
9.9%US$256.00US$185.00US$306.9320
Aug ’24US$219.00
US$204.37
-6.7%
10.0%US$235.00US$161.00US$297.8819
Jul ’24US$201.10
US$197.60
-1.7%
9.9%US$230.00US$159.00US$312.3720
Jun ’24US$179.04
US$191.67
+7.1%
8.4%US$221.00US$159.00US$332.8518
May ’24US$168.78
US$185.88
+10.1%
9.6%US$210.00US$145.00US$312.0317
Apr ’24US$171.34
US$186.94
+9.1%
9.3%US$213.00US$148.00US$312.0317
Mar ’24US$173.83
US$180.18
+3.7%
8.8%US$213.00US$148.00US$293.7017
Feb ’24US$163.34
US$168.82
+3.4%
11.1%US$197.00US$128.00US$264.5717
Analyst Price Target
Consensus Narrative from 24 Analysts
US$374.16
Fair Value
15.6% undervalued intrinsic discount
24
Number of Analysts

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 Analysis2025/02/06 05:06
End of Day Share Price 2025/02/06 00:00
Earnings2024/12/31
Annual Earnings2024/12/31

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.

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 Github.

Analyst Sources

Eaton Corporation plc is covered by 52 analysts. 24 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
John EadeArgus Research Company
Richard RadbourneAtlantic Equities LLP
Mircea DobreBaird