Stock Analysis on Net

Eaton Corp. plc (NYSE:ETN)

Price to FCFE (P/FCFE)

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Free Cash Flow to Equity (FCFE)

Eaton Corp. plc, FCFE calculation

US$ in millions

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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 3,218 2,462 2,144 1,410 2,211
Net income for noncontrolling interests 5 4 2 5 2
Net noncash charges 550 755 326 894 1,174
Changes in working capital (149) (688) (309) 635 64
Net cash provided by operating activities 3,624 2,533 2,163 2,944 3,451
Capital expenditures for property, plant and equipment (757) (598) (575) (389) (587)
Proceeds from sales of property, plant and equipment 76 163 44 12
Proceeds from borrowings 818 1,995 1,798 1,232
Payments on borrowings (19) (2,012) (1,013) (249) (348)
Short-term debt, net (311) 317 20 (254) (159)
Free cash flow to equity (FCFE) 3,431 2,398 2,437 2,064 3,589

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
FCFE Free cash flow to equity is the cash flow available to Eaton Corp. plc equity holders after all operating expenses, interest, and principal payments have been paid and necessary investments in working and fixed capital have been made. Eaton Corp. plc FCFE decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.

Price to FCFE Ratio, Current

Eaton Corp. plc, current P/FCFE calculation, comparison to benchmarks

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No. shares of common stock outstanding 395,200,000
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions) 3,431
FCFE per share 8.68
Current share price (P) 363.69
Valuation Ratio
P/FCFE 41.89
Benchmarks
P/FCFE, Competitors1
Boeing Co.
Caterpillar Inc. 16.53
GE Aerospace 291.17
Honeywell International Inc. 30.12
Lockheed Martin Corp. 15.63
RTX Corp. 9.12
P/FCFE, Sector
Capital Goods 23.21
P/FCFE, Industry
Industrials 24.31

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

1 Click competitor name to see calculations.

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


Price to FCFE Ratio, Historical

Eaton Corp. plc, historical P/FCFE calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
No. shares of common stock outstanding1 399,500,000 398,000,000 398,800,000 398,100,000 413,400,000
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)2 3,431 2,398 2,437 2,064 3,589
FCFE per share3 8.59 6.03 6.11 5.18 8.68
Share price1, 4 289.00 172.78 149.31 132.68 96.58
Valuation Ratio
P/FCFE5 33.65 28.68 24.43 25.59 11.12
Benchmarks
P/FCFE, Competitors6
Boeing Co. 120.43 6.78 19.60
Caterpillar Inc. 14.39 24.03 16.36 25.22 11.07
GE Aerospace 225.15 44.45
Honeywell International Inc. 26.10 27.59 46.23 12.59 21.75
Lockheed Martin Corp. 13.13 11.63 14.65 15.57 28.62
RTX Corp. 7.05 26.71 35.07 28.09
P/FCFE, Sector
Capital Goods 20.26 25.94 74.91 27.54
P/FCFE, Industry
Industrials 22.81 23.85 49.40 28.48

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 Data adjusted for splits and stock dividends.

2 See details »

3 2023 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 3,431,000,000 ÷ 399,500,000 = 8.59

4 Closing price as at the filing date of Eaton Corp. plc Annual Report.

5 2023 Calculation
P/FCFE = Share price ÷ FCFE per share
= 289.00 ÷ 8.59 = 33.65

6 Click competitor name to see calculations.

Valuation ratio Description The company
P/FCFE Price to free cash flow to equity is cash valuation indicator of stockholders’ equity. Eaton Corp. plc P/FCFE ratio increased from 2021 to 2022 and from 2022 to 2023.