ETN
Eaton Corporation plc (ETN)
Last Price$278.5(5.1%)
Market Cap$113.4B
DCF value
$93.2
Overvalued (DCF value)
(66.5%)
Discount Rate
8.9%
Long-Term Growth Rate
2.0%
Stock quality
7/10
Good

ETN DCF Model

Free Cash Flow to Firm Model
NOPAT Model
Free Cash Flow to Equity Model
Net Income Model
Millions
Billions
Dec'19 ActualDec'20 ActualDec'21 ActualDec'22 ActualDec'23 ActualDec'24 EstimateDec'25 EstimateDec'26 EstimateDec'27 EstimateDec'28 EstimateDec'29 EstimateDec'30 EstimateDec'31 EstimateDec'32 EstimateDec'33 EstimateDec'34 Terminal
% growth
21,390.0
(1.0%)
17,858.0
(16.5%)
19,628.0
9.9%
20,752.0
5.7%
23,196.0
11.8%
24,981.4
7.7%
26,731.5
7.0%
28,703.6
7.4%
30,772.2
7.2%
34,997.1
13.7%
39,117.8
11.8%
42,959.1
9.8%
46,337.7
7.9%
49,076.2
5.9%
51,017.1
4.0%
52,037.5
2.0%
1,943.0
9.1%
863.0
4.8%
1,501.0
7.6%
2,077.0
10.0%
3,885.0
16.7%
2,434.3
9.7%
2,604.8
9.7%
2,797.0
9.7%
2,998.5
9.7%
3,410.2
9.7%
3,811.8
9.7%
4,186.1
9.7%
4,515.3
9.7%
4,782.1
9.7%
4,971.3
9.7%
5,070.7
9.7%
NOPAT
% effective tax rate
1,659.5
7.8%
699.4
3.9%
1,112.3
5.7%
1,759.5
8.5%
3,271.8
14.1%
2,050.1
8.2%
2,193.7
8.2%
2,355.5
8.2%
2,525.3
8.2%
2,872.0
8.2%
3,210.2
8.2%
3,525.4
8.2%
3,802.7
8.2%
4,027.4
8.2%
4,186.7
8.2%
4,270.4
8.2%
% of revenue
884.0
4.1%
811.0
4.5%
922.0
4.7%
954.0
4.6%
926.0
4.0%
1,106.4
4.4%
1,183.9
4.4%
1,271.2
4.4%
1,362.9
4.4%
1,550.0
4.4%
1,732.5
4.4%
1,902.6
4.4%
2,052.2
4.4%
2,173.5
4.4%
2,259.5
4.4%
2,304.7
4.4%
% of revenue
(587.0)
(2.7%)
(389.0)
(2.2%)
(575.0)
(2.9%)
(598.0)
(2.9%)
(757.0)
(3.3%)
(755.7)
(3.0%)
(808.6)
(3.0%)
(868.2)
(3.0%)
(930.8)
(3.0%)
(1,058.6)
(3.0%)
(1,183.3)
(3.0%)
(1,299.5)
(3.0%)
(1,401.7)
(3.0%)
(1,484.5)
(3.0%)
(1,543.2)
(3.0%)
(1,574.1)
(3.0%)
64.0
0.3%
635.0
3.6%
(309.0)
(1.6%)
(688.0)
(3.3%)
(225.0)
(1.0%)
(487.9)
(2.0%)
(522.1)
(2.0%)
(560.6)
(2.0%)
(601.0)
(2.0%)
(683.6)
(2.0%)
(764.1)
(2.0%)
(839.1)
(2.0%)
(905.1)
(2.0%)
(958.6)
(2.0%)
(996.5)
(2.0%)
(1,016.4)
(2.0%)
Free Cash Flow to Firm (FCFF)
% of revenue
2,020.5
9.4%
1,756.4
9.8%
1,150.3
5.9%
1,427.5
6.9%
3,215.8
13.9%
1,912.9
7.7%
2,046.9
7.7%
2,197.9
7.7%
2,356.3
7.7%
2,679.8
7.7%
2,995.3
7.7%
3,289.5
7.7%
3,548.2
7.7%
3,757.9
7.7%
3,906.5
7.7%
3,984.6
7.7%
% of FCFF used in calculation
100.0%
83.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
Discount period
0.50
1.50
2.50
3.50
4.50
5.50
6.50
7.50
8.50
Discount factor
0.96
0.88
0.81
0.74
0.68
0.62
0.57
0.53
0.48
Discounted FCFF (DFCFF)
1,628.0
1,932.9
1,902.1
1,985.7
2,037.3
2,053.7
2,033.4
1,976.8
1,886.3

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ETN DCF Value

DCF Value Calculation

as of Mar 03, 2025
Sum of DFCFF
% share of EV
17.4B
38.6%
Terminal Value (TV)
57.4B
Discounted TV
% share of EV
27.7B
61.4%
Total Debt
9,802.0M
Shares outstanding
407.1M
FX rate
1.0
66.5% overvalued

Equity Value Bridge

ETN DCF Financials

Revenue
$23.2B -> $51.0B 8.2% CAGR
Operating Income
$3,885.0M -> $4,971.3M 2.5% CAGR
FCFF
$3,215.8M -> $3,906.5M 2.0% CAGR

ETN DCF sensitivity

DCF value
Long-term Terminal growth rate
1.0%
1.5%
2.0%
2.5%
3.0%
WACC
8.0%
$100.0
$105.0
$112.0
$119.0
$129.0
8.5%
$91.0
$96.0
$101.0
$108.0
$115.0
8.9%
$85.0
$89.0
$93.0
$99.0
$105.0
9.5%
$77.0
$81.0
$85.0
$89.0
$94.0
10.0%
$72.0
$75.0
$78.0
$81.0
$86.0
DCF value, undervalued / overvalued
Long-term Terminal growth rate
1.0%
1.5%
2.0%
2.5%
3.0%
WACC
8.0%
(64.0%)
(62.0%)
(60.0%)
(57.0%)
(54.0%)
8.5%
(67.0%)
(66.0%)
(64.0%)
(61.0%)
(59.0%)
8.9%
(69.0%)
(68.0%)
(67.0%)
(64.0%)
(62.0%)
9.5%
(72.0%)
(71.0%)
(69.0%)
(68.0%)
(66.0%)
10.0%
(74.0%)
(73.0%)
(72.0%)
(71.0%)
(69.0%)

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FAQ

What is Eaton Corporation plc DCF (discounted cash flow) valuation?

As of Mar 03, 2025, Eaton Corporation plc's Discounted Cash Flow (DCF) valuation estimates its share price at $93.2. This suggests it may be overvalued by (66.5%) compared to its current price of around $278.5, using a WACC of 8.9% and growth rates of 2.0%.

What is Eaton Corporation plc WACC?

As of Mar 03, 2025, Eaton Corporation plc's Weighted Average Cost of Capital (WACC) is approximately 8.9%.

What is Eaton Corporation plc Enterprise Value?

As of Mar 03, 2025, Eaton Corporation plc's Enterprise Value (EV) is approximately $45.2B. This value reflects the company's total market capitalization plus debt, minus cash and cash equivalents, providing a comprehensive measure of its overall value in the market.