Stock Analysis on Net

Eaton Corp. plc (NYSE:ETN)

Common Stock Valuation Ratios (Price Multiples) 

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Current Valuation Ratios

Eaton Corp. plc, current price multiples

Microsoft Excel
Eaton Corp. plc Boeing Co. Caterpillar Inc. GE Aerospace Honeywell International Inc. Lockheed Martin Corp. RTX Corp. Capital Goods Industrials
Selected Financial Data
Current share price (P) $274.17
No. shares of common stock outstanding 392,000,000
Growth rate (g) 6.64%
 
Earnings per share (EPS) $9.68
Next year expected EPS $10.32
Operating profit per share $11.82
Sales per share $63.46
Book value per share (BVPS) $47.16
Valuation Ratios (Price Multiples)
Price to earnings (P/E) 28.33 14.60 32.72 23.96 19.48 36.75 40.89 27.16
Price to next year expected earnings 26.56 11.68 32.24 20.83 13.58 36.23 41.09 25.48
Price-earnings-growth (PEG) 4.27 0.58 21.98 1.59 0.45 25.38 4.12
Price to operating profit (P/OP) 23.20 12.05 26.23 18.37 14.82 26.84 28.36 22.01
Price to sales (P/S) 4.32 1.95 2.57 6.11 3.55 1.46 2.17 2.71 2.19
Price to book value (P/BV) 5.81 8.08 11.09 7.34 16.41 2.92 7.40 6.38

Based on: 10-K (reporting date: 2024-12-31).

If the company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.
Otherwise, if the company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.


Historical Valuation Ratios (Summary)

Eaton Corp. plc, historical price multiples

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Price to earnings (P/E) 30.00 35.88 27.93 27.77 37.46
Price to operating profit (P/OP) 24.57 29.72 22.78 19.33 25.83
Price to sales (P/S) 4.58 4.98 3.31 3.03 2.96
Price to book value (P/BV) 6.16 6.07 4.04 3.63 3.54

Based on: 10-K (reporting date: 2024-12-31), 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).

Valuation ratio Description The company
P/E ratio The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. Eaton Corp. plc P/E ratio increased from 2022 to 2023 but then slightly decreased from 2023 to 2024 not reaching 2022 level.
P/OP ratio Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. Eaton Corp. plc P/OP ratio increased from 2022 to 2023 but then slightly decreased from 2023 to 2024 not reaching 2022 level.
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. Eaton Corp. plc P/S ratio increased from 2022 to 2023 but then slightly decreased from 2023 to 2024.
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company required rate of return and its actual rate of return. Eaton Corp. plc P/BV ratio increased from 2022 to 2023 and from 2023 to 2024.

Price to Earnings (P/E)

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

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
No. shares of common stock outstanding1 392,000,000 399,500,000 398,000,000 398,800,000 398,100,000
Selected Financial Data (US$)
Net income attributable to Eaton ordinary shareholders (in millions) 3,794 3,218 2,462 2,144 1,410
Earnings per share (EPS)2 9.68 8.06 6.19 5.38 3.54
Share price1, 3 290.38 289.00 172.78 149.31 132.68
Valuation Ratio
P/E ratio4 30.00 35.88 27.93 27.77 37.46
Benchmarks
P/E Ratio, Competitors5
Boeing Co.
Caterpillar Inc. 15.65 15.55 19.15 16.82 36.80
GE Aerospace 33.42 16.18 19.67
Honeywell International Inc. 23.10 22.73 26.97 23.14 29.63
Lockheed Martin Corp. 20.18 15.35 20.48 16.70 13.44
RTX Corp. 36.25 38.31 27.59 36.79
P/E Ratio, Sector
Capital Goods 41.71 25.10 40.21 57.31 123.55
P/E Ratio, Industry
Industrials 28.42 24.85 36.06 35.59

Based on: 10-K (reporting date: 2024-12-31), 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).

1 Data adjusted for splits and stock dividends.

2 2024 Calculation
EPS = Net income attributable to Eaton ordinary shareholders ÷ No. shares of common stock outstanding
= 3,794,000,000 ÷ 392,000,000 = 9.68

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

4 2024 Calculation
P/E ratio = Share price ÷ EPS
= 290.38 ÷ 9.68 = 30.00

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/E ratio The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. Eaton Corp. plc P/E ratio increased from 2022 to 2023 but then slightly decreased from 2023 to 2024 not reaching 2022 level.

Price to Operating Profit (P/OP)

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

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
No. shares of common stock outstanding1 392,000,000 399,500,000 398,000,000 398,800,000 398,100,000
Selected Financial Data (US$)
Operating income (in millions) 4,632 3,885 3,019 3,080 2,045
Operating profit per share2 11.82 9.72 7.59 7.72 5.14
Share price1, 3 290.38 289.00 172.78 149.31 132.68
Valuation Ratio
P/OP ratio4 24.57 29.72 22.78 19.33 25.83
Benchmarks
P/OP Ratio, Competitors5
Boeing Co.
Caterpillar Inc. 12.92 12.40 16.25 15.87 24.23
GE Aerospace 26.78 27.11 19.88 17.46 25.64
Honeywell International Inc. 17.71 18.15 20.84 20.68 24.86
Lockheed Martin Corp. 15.35 12.49 14.06 11.56 10.63
RTX Corp. 26.47 34.37 26.48 28.68
P/OP Ratio, Sector
Capital Goods 28.93 22.37 25.20 22.96 70.31
P/OP Ratio, Industry
Industrials 23.03 20.78 19.86 22.38 68.31

Based on: 10-K (reporting date: 2024-12-31), 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).

1 Data adjusted for splits and stock dividends.

2 2024 Calculation
Operating profit per share = Operating income ÷ No. shares of common stock outstanding
= 4,632,000,000 ÷ 392,000,000 = 11.82

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

4 2024 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 290.38 ÷ 11.82 = 24.57

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/OP ratio Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. Eaton Corp. plc P/OP ratio increased from 2022 to 2023 but then slightly decreased from 2023 to 2024 not reaching 2022 level.

Price to Sales (P/S)

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

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
No. shares of common stock outstanding1 392,000,000 399,500,000 398,000,000 398,800,000 398,100,000
Selected Financial Data (US$)
Net sales (in millions) 24,878 23,196 20,752 19,628 17,858
Sales per share2 63.46 58.06 52.14 49.22 44.86
Share price1, 3 290.38 289.00 172.78 149.31 132.68
Valuation Ratio
P/S ratio4 4.58 4.98 3.31 3.03 2.96
Benchmarks
P/S Ratio, Competitors5
Boeing Co. 1.98 1.66 1.90 1.87 1.96
Caterpillar Inc. 2.75 2.52 2.27 2.26 2.83
GE Aerospace 6.24 2.30 1.20 1.50 1.41
Honeywell International Inc. 3.42 3.51 3.78 3.73 4.34
Lockheed Martin Corp. 1.52 1.57 1.78 1.57 1.40
RTX Corp. 2.14 1.78 2.14 2.21 1.95
P/S Ratio, Sector
Capital Goods 2.77 2.26 2.09 2.09 2.11
P/S Ratio, Industry
Industrials 2.29 2.06 1.80 2.07 2.14

Based on: 10-K (reporting date: 2024-12-31), 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).

1 Data adjusted for splits and stock dividends.

2 2024 Calculation
Sales per share = Net sales ÷ No. shares of common stock outstanding
= 24,878,000,000 ÷ 392,000,000 = 63.46

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

4 2024 Calculation
P/S ratio = Share price ÷ Sales per share
= 290.38 ÷ 63.46 = 4.58

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. Eaton Corp. plc P/S ratio increased from 2022 to 2023 but then slightly decreased from 2023 to 2024.

Price to Book Value (P/BV)

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

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
No. shares of common stock outstanding1 392,000,000 399,500,000 398,000,000 398,800,000 398,100,000
Selected Financial Data (US$)
Total Eaton shareholders’ equity (in millions) 18,488 19,036 17,038 16,413 14,930
Book value per share (BVPS)2 47.16 47.65 42.81 41.16 37.50
Share price1, 3 290.38 289.00 172.78 149.31 132.68
Valuation Ratio
P/BV ratio4 6.16 6.07 4.04 3.63 3.54
Benchmarks
P/BV Ratio, Competitors5
Boeing Co.
Caterpillar Inc. 8.66 8.25 8.09 6.62 7.20
GE Aerospace 11.33 5.43 2.43 2.64 2.89
Honeywell International Inc. 7.08 8.11 8.02 6.91 8.07
Lockheed Martin Corp. 17.00 15.54 12.67 9.62 15.27
RTX Corp. 2.88 2.05 1.97 1.95 1.53
P/BV Ratio, Sector
Capital Goods 7.55 6.94 5.31 4.77 5.05
P/BV Ratio, Industry
Industrials 6.68 6.85 5.50 5.44 5.89

Based on: 10-K (reporting date: 2024-12-31), 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).

1 Data adjusted for splits and stock dividends.

2 2024 Calculation
BVPS = Total Eaton shareholders’ equity ÷ No. shares of common stock outstanding
= 18,488,000,000 ÷ 392,000,000 = 47.16

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

4 2024 Calculation
P/BV ratio = Share price ÷ BVPS
= 290.38 ÷ 47.16 = 6.16

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company required rate of return and its actual rate of return. Eaton Corp. plc P/BV ratio increased from 2022 to 2023 and from 2023 to 2024.