Eaton Corp plc (ETN)

Misc Industrial & Commercial Machinery & Equipment

Latest Price

$415.20

TTM P/E

40.63

Normalized P/E

50.22

Div Yield

1.02%

Book Value

50.80

P/B Ratio

8.17

Valuation metrics

EPS: $10.45

Book value / share: $50.08

Formula: √(22.5 × EPS × BVPS)

Graham Number

$108.51

72% downside

Norm. op. income: $3.0B (median of 7yr)

Tax rate: 17%

Discount rate: 10%

Growth assumption: zero (EPV is a no-growth value)

Earnings Power Value

$41.75

89% downside

Base FCF: $2.9B (median of recent 5yr)

Growth: 11%/yr (median YOY, capped at 25%)

Discount rate: 10%

Terminal growth: 3%

Projection horizon: 10 years

DCF Fair Value

$179.40

54% downside

EPS: $10.45

Target P/E: 47×

Formula: EPS × P/E

P/E Fair Value

$491.15

+27% upside