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.

Below Fair Value: ETN ($312.68) is trading above our estimate of fair value ($157.03)

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?

Other financial metrics that can be useful for relative valuation.

ETN key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue5.7x
Enterprise Value/EBITDA27.4x
PEG Ratio3.7x

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 Average40.2x
EMR Emerson Electric
33.1x12.8%US$64.9b
AME AMETEK
32.2x8.1%US$42.5b
ROK Rockwell Automation
27.5x10.0%US$33.4b
VRT Vertiv Holdings Co
67.8x29.9%US$30.9b
ETN Eaton
38.9x10.6%US$125.7b

Price-To-Earnings vs Peers: ETN is good value based on its Price-To-Earnings Ratio (38.9x) compared to the peer average (40.2x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a15.5%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a15.5%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: ETN is expensive based on its Price-To-Earnings Ratio (38.9x) compared to the US Electrical industry average (22x).


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 Ratio38.9x
Fair PE Ratio31.8x

Price-To-Earnings vs Fair Ratio: ETN is expensive based on its Price-To-Earnings Ratio (38.9x) compared to the estimated Fair Price-To-Earnings Ratio (31.8x).


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$312.68
US$299.98
-4.1%
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$200.00n/a19
Jan ’25US$240.82
US$237.21
-1.5%
11.5%US$275.00US$187.00n/a19
Dec ’24US$230.46
US$232.11
+0.7%
10.2%US$270.00US$187.00n/a19
Nov ’24US$214.83
US$231.68
+7.8%
10.1%US$270.00US$187.00n/a19
Oct ’24US$213.28
US$226.20
+6.1%
10.8%US$270.00US$185.00n/a20
Sep ’24US$233.67
US$224.25
-4.0%
9.9%US$256.00US$185.00n/a20
Aug ’24US$219.00
US$204.37
-6.7%
10.0%US$235.00US$161.00n/a19
Jul ’24US$201.10
US$197.60
-1.7%
9.9%US$230.00US$159.00n/a20
Jun ’24US$179.04
US$191.67
+7.1%
8.4%US$221.00US$159.00n/a18
May ’24US$168.78
US$185.88
+10.1%
9.6%US$210.00US$145.00n/a17
Apr ’24US$171.34
US$186.94
+9.1%
9.3%US$213.00US$148.00n/a17
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
Jan ’24US$156.95
US$167.65
+6.8%
11.7%US$197.00US$124.00US$240.8217
Dec ’23US$163.36
US$166.39
+1.9%
11.4%US$197.00US$124.00US$230.4618
Nov ’23US$151.64
US$163.47
+7.8%
11.0%US$197.00US$124.00US$214.8319
Oct ’23US$133.36
US$163.90
+22.9%
12.6%US$205.00US$124.00US$213.2820
Sep ’23US$138.77
US$163.90
+18.1%
12.6%US$205.00US$124.00US$233.6720
Aug ’23US$147.50
US$159.60
+8.2%
15.1%US$205.00US$112.00US$219.0020
Jul ’23US$127.37
US$168.40
+32.2%
13.2%US$205.00US$120.00US$201.1020
Jun ’23US$137.72
US$170.70
+23.9%
12.3%US$205.00US$120.00US$179.0420
May ’23US$145.02
US$174.95
+20.6%
10.0%US$205.00US$149.00US$168.7820
Apr ’23US$151.81
US$179.90
+18.5%
9.2%US$205.00US$150.00US$171.3420
Mar ’23US$146.45
US$180.05
+22.9%
9.7%US$205.00US$143.00US$173.8320

Analyst Forecast: Target price is lower than the current share price.


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