Eaton Corporation plc

NYSE:ETN Stock Report

Market Cap: US$140.8b

Eaton Valuation

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

Valuation Score

2/6

Valuation Score 2/6

  • Below Future Cash Flow Value

  • Significantly Below Future Cash Flow Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Future Cash Flow 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.

Ultimate guide to DCF valuation for stock investing

Learn how to determine fair value like the best investors in the world.

Below Future Cash Flow Value: ETN ($365) is trading above our estimate of future cash flow value ($224.17)

Significantly Below Future Cash Flow Value: ETN is trading above our estimate of future cash flow 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 Ratio34.7x
EarningsUS$4.09b
Market CapUS$140.81b

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 Average49.3x
EMR Emerson Electric
38.4x14.04%US$85.5b
VRT Vertiv Holdings Co
67.5x21.67%US$72.7b
AME AMETEK
35.4x8.04%US$52.7b
ROK Rockwell Automation
55.7x16.73%US$48.4b
ETN Eaton
34.7x12.49%US$140.8b

Price-To-Earnings vs Peers: ETN is good value based on its Price-To-Earnings Ratio (34.7x) compared to the peer average (49.3x).

Historical Price to Earnings Ratio

Historical Price to Earnings Ratio compares a stock's price to its earnings over time. Higher ratios indicate that investors are willing to pay more for the stock.

Fetching historical data

Price to Earnings Ratio vs Industry

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

5 CompaniesPrice / EarningsEstimated GrowthMarket Cap
STEM Stem
1.2x-97.29%US$128.87m
HLGN Heliogen
0.3xn/aUS$10.50m
DEWY Dewey Electronics
4.4xn/aUS$2.45m
ADNH Advent Technologies Holdings
1.8xn/aUS$1.43m
ETN 34.7xIndustry Avg. 34.7xNo. of Companies5PE020406080100+
5 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: ETN is expensive based on its Price-To-Earnings Ratio (34.7x) compared to the US Electrical industry average (34.7x).

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 Ratio34.7x
Fair PE Ratio39.6x

Price-To-Earnings vs Fair Ratio: ETN is good value based on its Price-To-Earnings Ratio (34.7x) compared to the estimated Fair Price-To-Earnings Ratio (39.6x).

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$365.00
US$401.07
+9.88%
11.06%US$552.00US$321.00n/a26
Jan ’27US$318.51
US$404.06
+26.86%
9.46%US$474.00US$288.00n/a25
Dec ’26US$339.71
US$410.77
+20.92%
9.62%US$500.00US$288.00n/a24
Nov ’26US$381.56
US$404.21
+5.94%
9.76%US$495.00US$288.00n/a26
Oct ’26US$373.84
US$398.71
+6.65%
9.76%US$495.00US$288.00n/a26
Sep ’26US$349.14
US$390.15
+11.75%
9.57%US$440.00US$288.00n/a26
Aug ’26US$381.29
US$372.41
-2.33%
10.30%US$432.00US$288.00n/a25
Jul ’26US$355.04
US$353.69
-0.38%
9.11%US$396.00US$288.00n/a26
Jun ’26US$320.20
US$348.53
+8.85%
9.76%US$418.18US$288.00n/a26
May ’26US$301.66
US$337.13
+11.76%
11.13%US$418.18US$270.00n/a25
Apr ’26US$276.70
US$351.78
+27.13%
10.53%US$418.18US$288.00n/a26
Mar ’26US$293.32
US$373.48
+27.33%
8.21%US$418.18US$288.00n/a24
Feb ’26US$326.44
US$377.37
+15.60%
7.77%US$418.18US$288.00US$351.4224
Jan ’26US$331.87
US$381.66
+15.00%
8.75%US$440.00US$274.00US$318.5125
Dec ’25US$375.42
US$372.48
-0.78%
9.94%US$431.00US$274.00US$339.7124
Nov ’25US$335.00
US$354.08
+5.69%
8.89%US$400.00US$274.00US$381.5622
Oct ’25US$327.58
US$345.34
+5.42%
8.11%US$385.00US$280.00US$373.8421
Sep ’25US$306.93
US$337.87
+10.08%
8.75%US$385.00US$280.00US$349.1421
Aug ’25US$297.88
US$333.20
+11.86%
12.32%US$385.00US$225.00US$381.2922
Jul ’25US$312.37
US$331.20
+6.03%
11.95%US$375.00US$225.00US$355.0422
Jun ’25US$332.85
US$328.47
-1.32%
12.25%US$375.00US$225.00US$320.2020
May ’25US$312.03
US$320.22
+2.62%
12.92%US$375.00US$225.00US$301.6621
Apr ’25US$312.03
US$299.98
-3.86%
12.94%US$345.80US$210.00US$276.7021
Mar ’25US$293.70
US$276.27
-5.94%
12.49%US$330.00US$200.00US$293.3222
Feb ’25US$264.57
US$246.22
-6.94%
9.86%US$276.00US$200.00US$326.4419
US$401.07
Fair Value
9.0% undervalued intrinsic discount
26
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 Analysis2026/02/04 12:27
End of Day Share Price 2026/02/04 00:00
Earnings2025/12/31
Annual Earnings2025/12/31

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 49 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
Mircea DobreBaird
Julian MitchellBarclays