Stock Analysis on Net

Eaton Corp. plc (NYSE:ETN)

$24.99

Enterprise Value to FCFF (EV/FCFF)

Microsoft Excel

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Free Cash Flow to The Firm (FCFF)

Eaton Corp. plc, FCFF calculation

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Net income attributable to Eaton ordinary shareholders
Net income for noncontrolling interests
Net noncash charges
Changes in working capital
Net cash provided by operating activities
Interest paid on debt, net of tax1
Capital expenditures for property, plant and equipment
Proceeds from sales of property, plant and equipment
Lease assets obtained in exchange for new lease obligations, including leases acquired, finance leases
Free cash flow to the firm (FCFF)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Item Description The company
FCFF Free cash flow to the firm is the cash flow available to the Eaton Corp. plc suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made. Eaton Corp. plc FCFF increased from 2021 to 2022 and from 2022 to 2023.

Interest Paid, Net of Tax

Eaton Corp. plc, interest paid, net of tax calculation

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Effective Income Tax Rate (EITR)
EITR1
Interest Paid, Net of Tax
Interest paid on debt, before tax
Less: Interest paid on debt, tax2
Interest paid on debt, net of tax

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 See details »

2 2023 Calculation
Interest paid on debt, tax = Interest paid on debt × EITR
= × =


Enterprise Value to FCFF Ratio, Current

Eaton Corp. plc, current EV/FCFF calculation, comparison to benchmarks

Microsoft Excel
Selected Financial Data (US$ in millions)
Enterprise value (EV)
Free cash flow to the firm (FCFF)
Valuation Ratio
EV/FCFF
Benchmarks
EV/FCFF, Competitors1
Boeing Co.
Caterpillar Inc.
GE Aerospace
Honeywell International Inc.
Lockheed Martin Corp.
RTX Corp.
EV/FCFF, Sector
Capital Goods
EV/FCFF, Industry
Industrials

Based on: 10-K (reporting date: 2023-12-31).

1 Click competitor name to see calculations.

If the company EV/FCFF is lower then the EV/FCFF of benchmark then company is relatively undervalued.
Otherwise, if the company EV/FCFF is higher then the EV/FCFF of benchmark then company is relatively overvalued.


Enterprise Value to FCFF Ratio, Historical

Eaton Corp. plc, historical EV/FCFF calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Enterprise value (EV)1
Free cash flow to the firm (FCFF)2
Valuation Ratio
EV/FCFF3
Benchmarks
EV/FCFF, Competitors4
Boeing Co.
Caterpillar Inc.
GE Aerospace
Honeywell International Inc.
Lockheed Martin Corp.
RTX Corp.
EV/FCFF, Sector
Capital Goods
EV/FCFF, Industry
Industrials

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 See details »

2 See details »

3 2023 Calculation
EV/FCFF = EV ÷ FCFF
= ÷ =

4 Click competitor name to see calculations.

Valuation ratio Description The company
EV/FCFF Enterprise value to free cash flow to the firm is whole company valuation indicator. Eaton Corp. plc EV/FCFF ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.