Common Stock Valuation Ratios (Price Multiples)
Valuation ratios measure the quantity of an asset or flaw (e.g., earnings) associated with ownership of a specified claim (e.g., a share of ownership of the enterprise).
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Eaton Corp. plc pages available for free this week:
- Balance Sheet: Assets
- Cash Flow Statement
- Common-Size Balance Sheet: Assets
- Analysis of Long-term (Investment) Activity Ratios
- Analysis of Reportable Segments
- Enterprise Value to FCFF (EV/FCFF)
- Capital Asset Pricing Model (CAPM)
- Dividend Discount Model (DDM)
- Selected Financial Data since 2005
- Aggregate Accruals
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Current Valuation Ratios
Eaton Corp. plc, current price multiples
| 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) | ||||||||||||
| No. shares of common stock outstanding | ||||||||||||
| Growth rate (g) | ||||||||||||
| Earnings per share (EPS) | ||||||||||||
| Next year expected EPS | ||||||||||||
| Operating profit per share | ||||||||||||
| Sales per share | ||||||||||||
| Book value per share (BVPS) | ||||||||||||
| Valuation Ratios (Price Multiples) | ||||||||||||
| Price to earnings (P/E) | ||||||||||||
| Price to next year expected earnings | ||||||||||||
| Price-earnings-growth (PEG) | ||||||||||||
| Price to operating profit (P/OP) | ||||||||||||
| Price to sales (P/S) | ||||||||||||
| Price to book value (P/BV) | ||||||||||||
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
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Price to earnings (P/E) | ||||||
| Price to operating profit (P/OP) | ||||||
| Price to sales (P/S) | ||||||
| Price to book value (P/BV) |
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).
- Price to Earnings (P/E) Ratio
- The P/E ratio showed a significant decline from 37.46 in 2020 to 27.77 in 2021, indicating a reduction in the market's valuation of earnings during this period. It remained fairly stable in 2022 at 27.93 before rising sharply to 35.88 in 2023, suggesting increased investor optimism or higher price levels relative to earnings. The ratio then decreased to 30.00 in 2024, pointing to a slight moderation in valuation.
- Price to Operating Profit (P/OP) Ratio
- The P/OP ratio declined from 25.83 in 2020 to 19.33 in 2021, indicating improved operating profit relative to price or a more conservative market valuation. In 2022, it increased to 22.78 and continued rising to 29.72 in 2023, reflecting possibly higher price expectations or reduced operating profitability in comparison to valuation. It decreased again in 2024 to 24.57, denoting a moderate correction in the market's pricing of operating profits.
- Price to Sales (P/S) Ratio
- The P/S ratio exhibited a steady upward trend over the period. Starting at 2.96 in 2020, it marginally increased to 3.03 in 2021 and 3.31 in 2022. A notable jump to 4.98 occurred in 2023, followed by a slight decrease to 4.58 in 2024. This overall increase suggests growing market valuation relative to sales, implying confidence in revenue growth or future sales potential despite some volatility.
- Price to Book Value (P/BV) Ratio
- The P/BV ratio rose consistently throughout the period. From 3.54 in 2020, it increased modestly to 3.63 in 2021 and 4.04 in 2022. A more pronounced increase was seen in 2023, reaching 6.07, with a marginal additional rise to 6.16 in 2024. This trend reflects enhanced market valuation relative to the company's net asset value, possibly driven by strong asset quality or investor confidence in the company’s balance sheet strength.
Price to Earnings (P/E)
Eaton Corp. plc, historical P/E calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Net income attributable to Eaton ordinary shareholders (in millions) | ||||||
| Earnings per share (EPS)2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/E ratio4 | ||||||
| Benchmarks | ||||||
| P/E Ratio, Competitors5 | ||||||
| Boeing Co. | ||||||
| Caterpillar Inc. | ||||||
| GE Aerospace | ||||||
| Honeywell International Inc. | ||||||
| Lockheed Martin Corp. | ||||||
| RTX Corp. | ||||||
| P/E Ratio, Sector | ||||||
| Capital Goods | ||||||
| P/E Ratio, Industry | ||||||
| Industrials | ||||||
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 Closing price as at the filing date of Eaton Corp. plc Annual Report.
4 2024 Calculation
P/E ratio = Share price ÷ EPS
= ÷ =
5 Click competitor name to see calculations.
The financial data exhibits consistent growth in key metrics over the analyzed five-year period. The share price demonstrates a substantial upward trend, rising from $132.68 at the end of 2020 to $290.38 by the end of 2024. This represents an overall increase of approximately 119%, indicating a strong market valuation appreciation.
Earnings per share (EPS) also follow a positive trajectory, increasing from $3.54 in 2020 to $9.68 in 2024. This more than doubling of EPS over the period suggests significant improvements in profitability or operational efficiency, reflecting positively on the company's earnings capacity.
The price-to-earnings (P/E) ratio reveals some variability during the timeframe. Initially, the ratio decreases from 37.46 in 2020 to a lower range near 27.7 in 2021 and 2022, indicating that the share price growth was somewhat subdued relative to earnings growth, or that earnings expanded faster than the share price initially. However, the P/E jumps back to 35.88 in 2023 before declining to 30.00 in 2024. This fluctuation suggests changes in market sentiment or expectations about future growth, with the market initially valuing the stock at a lower earnings multiple before revising expectations upward and then moderating again.
In summary, the data indicates robust growth in share price and earnings per share, accompanied by moderate variability in valuation multiples as measured by the P/E ratio. The general positive trend in both market value and earnings signals strong financial performance, while the P/E ratio movements may reflect changing investor confidence or shifts in growth outlooks over the period.
Price to Operating Profit (P/OP)
Eaton Corp. plc, historical P/OP calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Operating income (in millions) | ||||||
| Operating profit per share2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/OP ratio4 | ||||||
| Benchmarks | ||||||
| P/OP Ratio, Competitors5 | ||||||
| Boeing Co. | ||||||
| Caterpillar Inc. | ||||||
| GE Aerospace | ||||||
| Honeywell International Inc. | ||||||
| Lockheed Martin Corp. | ||||||
| RTX Corp. | ||||||
| P/OP Ratio, Sector | ||||||
| Capital Goods | ||||||
| P/OP Ratio, Industry | ||||||
| Industrials | ||||||
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
= ÷ =
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
= ÷ =
5 Click competitor name to see calculations.
The financial data reveals several notable trends over the five-year period ending December 31, 2024.
- Share Price
- The share price exhibited a general upward trajectory throughout the period. Starting at $132.68 in 2020, it rose steadily to $172.78 by the end of 2022. A significant acceleration occurred thereafter, with the share price surging to $289 in 2023 before stabilizing at $290.38 in 2024. This suggests strong market confidence and possibly improved company performance or favorable external conditions driving investor interest.
- Operating Profit Per Share (OPPS)
- The operating profit per share increased consistently each year. From $5.14 in 2020, it climbed to $7.72 in 2021 and slightly dipped to $7.59 in 2022. However, the upward momentum resumed, reaching $9.72 in 2023 and further rising to $11.82 in 2024. This steady improvement reflects enhanced operational efficiency or growing profitability on a per-share basis over the medium term.
- Price to Operating Profit Ratio (P/OP)
- This ratio demonstrated more variability. Initially, the P/OP ratio decreased from 25.83 in 2020 to 19.33 in 2021, indicating that the share price gain was outpaced by the growth in operating profit per share, potentially reflecting improved valuation based on earnings. The ratio then increased to 22.78 in 2022 and peaked at 29.72 in 2023, possibly due to the sharp increase in share price outstripping operating profit growth that year. By 2024, the ratio declined to 24.57, suggesting a rebalancing between market price and profitability metrics.
Overall, the company demonstrated strong improvement in operating profitability on a per-share basis, supported by substantial appreciation in share price. The fluctuations in the price-to-operating profit ratio reflect changes in market valuation dynamics relative to profit generation, highlighting periods where the share price might have been driven by factors beyond immediate operational profits. The significant share price increase in 2023 in particular indicates strong market optimism, although the subsequent stabilization suggests a tempering of such enthusiasm.
Price to Sales (P/S)
Eaton Corp. plc, historical P/S calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Net sales (in millions) | ||||||
| Sales per share2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/S ratio4 | ||||||
| Benchmarks | ||||||
| P/S Ratio, Competitors5 | ||||||
| Boeing Co. | ||||||
| Caterpillar Inc. | ||||||
| GE Aerospace | ||||||
| Honeywell International Inc. | ||||||
| Lockheed Martin Corp. | ||||||
| RTX Corp. | ||||||
| P/S Ratio, Sector | ||||||
| Capital Goods | ||||||
| P/S Ratio, Industry | ||||||
| Industrials | ||||||
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
= ÷ =
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
= ÷ =
5 Click competitor name to see calculations.
- Share Price Trends
- The share price exhibits a consistent upward trajectory over the five-year period. Starting at $132.68 in 2020, it increased annually, reaching $149.31 in 2021, $172.78 in 2022, followed by a significant jump to $289 in 2023. The growth continued slightly into 2024 with a share price of $290.38, indicating strong market confidence and positive investor sentiment, particularly evident in the sharp price increase in 2023.
- Sales per Share Trends
- Sales per share also demonstrate a continuous positive trend, climbing steadily each year from $44.86 in 2020 to $63.46 in 2024. This progression suggests healthy operational growth and an expanding revenue base on a per-share basis, supporting the rise in share price.
- Price-to-Sales Ratio (P/S) Trends
- The price-to-sales ratio remains relatively stable with a slight upward movement from 2.96 in 2020 to 3.31 in 2022, indicating a moderate increase in market valuation relative to sales. However, a significant jump is observed in 2023 when the P/S ratio rises sharply to 4.98, before slightly declining to 4.58 in 2024. This fluctuation reflects the disproportionate increase in share price compared to sales growth, suggesting heightened investor expectations or market optimism during that period.
- Overall Insights
- Overall, the data reveals a positive and strengthening financial profile with steady growth in sales per share complemented by a substantial increase in share price. The sharp rise in the P/S ratio in 2023 indicates a possible re-rating of the stock, potentially due to improved market perception or future earnings prospects. While sales growth remains robust, the elevated P/S ratio suggests cautious attention to valuation levels relative to underlying sales performance.
Price to Book Value (P/BV)
Eaton Corp. plc, historical P/BV calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Total Eaton shareholders’ equity (in millions) | ||||||
| Book value per share (BVPS)2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/BV ratio4 | ||||||
| Benchmarks | ||||||
| P/BV Ratio, Competitors5 | ||||||
| Boeing Co. | ||||||
| Caterpillar Inc. | ||||||
| GE Aerospace | ||||||
| Honeywell International Inc. | ||||||
| Lockheed Martin Corp. | ||||||
| RTX Corp. | ||||||
| P/BV Ratio, Sector | ||||||
| Capital Goods | ||||||
| P/BV Ratio, Industry | ||||||
| Industrials | ||||||
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
= ÷ =
3 Closing price as at the filing date of Eaton Corp. plc Annual Report.
4 2024 Calculation
P/BV ratio = Share price ÷ BVPS
= ÷ =
5 Click competitor name to see calculations.
- Share Price
- The share price demonstrated a consistent upward trajectory over the five-year period. Beginning at $132.68 in 2020, it rose moderately to $149.31 in 2021 and $172.78 in 2022, followed by a pronounced increase to $289 in 2023, and a slight further rise to $290.38 in 2024. This pattern indicates growing investor confidence and potentially improved market conditions or company performance driving the stock valuation higher.
- Book Value Per Share (BVPS)
- Book value per share showed steady growth from $37.50 in 2020 to $41.16 in 2021 and $42.81 in 2022. The increase continued to $47.65 in 2023 but experienced a slight decline to $47.16 in 2024. Overall, BVPS growth suggests that the company’s net asset value per share increased over time, though 2024’s marginal dip may indicate either a reduction in equity or growth in outstanding shares.
- Price to Book Value Ratio (P/BV)
- The P/BV ratio increased from 3.54 in 2020 to 3.63 in 2021, followed by a sharper rise to 4.04 in 2022, and an even more marked increase to 6.07 in 2023, reaching 6.16 in 2024. This trend indicates that the market price increasingly exceeded the book value per share, suggesting heightened investor expectations or perceived growth potential relative to the company’s net assets, especially notable in the last two years.