We’ve recently updated our valuation analysis.

Eaton Valuation

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

[object Object] Score

0/6

Valuation Score 0/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

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/Revenue3.7x
Enterprise Value/EBITDA19.5x
PEG Ratio2.7x

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.
CompanyPEEstimated GrowthMarket Cap
Peer Average26.8x
EMR Emerson Electric
17.7x-4.8%US$57.3b
AME AMETEK
29.2x11.6%US$33.2b
ROK Rockwell Automation
32.8x11.6%US$30.5b
HUBB Hubbell
27.6x9.2%US$13.4b
ETN Eaton
28.3x10.5%US$64.9b

Price-To-Earnings vs Peers: ETN is expensive based on its Price-To-Earnings Ratio (28.3x) compared to the peer average (26.8x).


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/a12.3%
n/an/an/a

Price-To-Earnings vs Industry: ETN is expensive based on its Price-To-Earnings Ratio (28.3x) compared to the US Electrical industry average (19x)


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 Ratio28.3x
Fair PE Ratio24.7x

Price-To-Earnings vs Fair Ratio: ETN is expensive based on its Price-To-Earnings Ratio (28.3x) compared to the estimated Fair Price-To-Earnings Ratio (24.7x).


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 ($163.31) is trading above our estimate of fair value ($116.94)

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


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$163.31
US$166.39
+1.9%
11.4%US$197.00US$124.00n/a18
Nov ’23US$151.64
US$163.47
+7.8%
11.0%US$197.00US$124.00n/a19
Oct ’23US$133.36
US$163.90
+22.9%
12.6%US$205.00US$124.00n/a20
Sep ’23US$138.77
US$163.90
+18.1%
12.6%US$205.00US$124.00n/a20
Aug ’23US$147.50
US$159.60
+8.2%
15.1%US$205.00US$112.00n/a20
Jul ’23US$127.37
US$168.40
+32.2%
13.2%US$205.00US$120.00n/a20
Jun ’23US$137.72
US$170.70
+23.9%
12.3%US$205.00US$120.00n/a20
May ’23US$145.02
US$174.95
+20.6%
10.0%US$205.00US$149.00n/a20
Apr ’23US$151.81
US$179.90
+18.5%
9.2%US$205.00US$150.00n/a20
Mar ’23US$146.45
US$180.05
+22.9%
9.7%US$205.00US$143.00n/a20
Feb ’23US$159.39
US$185.05
+16.1%
10.9%US$223.00US$132.00n/a20
Jan ’23US$172.82
US$181.67
+5.1%
9.9%US$205.00US$132.00n/a21
Dec ’22US$161.47
US$179.25
+11.0%
9.5%US$200.00US$132.00US$163.3620
Nov ’22US$164.34
US$173.60
+5.6%
9.3%US$197.00US$132.00US$151.6420
Oct ’22US$150.65
US$176.16
+16.9%
9.0%US$195.00US$132.00US$133.3619
Sep ’22US$166.75
US$176.68
+6.0%
8.8%US$195.00US$132.00US$138.7719
Aug ’22US$158.05
US$160.21
+1.4%
8.3%US$180.00US$125.00US$147.5019
Jul ’22US$150.17
US$158.35
+5.4%
8.1%US$180.00US$125.00US$127.3720
Jun ’22US$146.29
US$157.10
+7.4%
7.5%US$173.00US$125.00US$137.7220
May ’22US$142.93
US$143.15
+0.2%
9.4%US$160.00US$116.00US$145.0220
Apr ’22US$139.49
US$140.35
+0.6%
9.2%US$160.00US$115.00US$151.8120
Mar ’22US$134.24
US$131.55
-2.0%
9.8%US$155.00US$104.00US$146.4520
Feb ’22US$121.54
US$125.86
+3.6%
11.5%US$155.00US$103.00US$159.3921
Jan ’22US$120.14
US$121.86
+1.4%
10.0%US$155.00US$103.00US$172.8221
Dec ’21US$120.70
US$119.00
-1.4%
6.9%US$135.00US$103.00US$161.4721

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


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