Latest Ratios: P/E Ratio 41.9x · EV/EBITDA 30.3x · ROE 21.5%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $170.4B | $124.1B | $132.5B | $96.6B | $62.9B | $69.4B | $48.5B | $39.9B | $30.0B | $35.3B | $30.6B |
| Enterprise Value | $180.9B | $134.6B | $141.8B | $105.9B | $71.7B | $78.0B | $56.5B | $48.1B | $37.2B | $42.5B | $38.4B |
| P/E Ratio → | 41.95 | 30.45 | 34.93 | 30.03 | 25.56 | 32.36 | 34.42 | 18.04 | 13.98 | 11.83 | 15.97 |
| P/S Ratio | 6.21 | 4.52 | 5.33 | 4.16 | 3.03 | 3.54 | 2.72 | 1.86 | 1.39 | 1.73 | 1.55 |
| P/B Ratio | 8.78 | 6.37 | 7.15 | 5.07 | 3.68 | 4.22 | 3.24 | 2.47 | 1.86 | 2.04 | 2.05 |
| P/FCF | 47.95 | 34.92 | 37.67 | 33.69 | 32.51 | 43.71 | 19.00 | 13.92 | 14.33 | 16.46 | 14.77 |
| P/OCF | 38.10 | 27.74 | 30.63 | 26.65 | 24.83 | 32.09 | 16.49 | 11.55 | 11.29 | 13.25 | 11.92 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 4.90 | 5.70 | 4.57 | 3.46 | 3.98 | 3.16 | 2.25 | 1.72 | 2.08 | 1.94 |
| EV / EBITDA | 30.25 | 22.51 | 24.51 | 21.52 | 17.10 | 20.58 | 18.03 | 12.20 | 9.58 | 11.84 | 11.30 |
| EV / EBIT | 34.60 | 25.91 | 30.11 | 26.25 | 23.92 | 25.67 | 28.72 | 17.03 | 13.82 | 11.76 | 16.32 |
| EV / FCF | — | 37.89 | 40.30 | 36.94 | 37.07 | 49.13 | 22.11 | 16.81 | 17.79 | 19.81 | 18.50 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 37.6% | 37.6% | 38.2% | 36.4% | 33.3% | 32.2% | 30.5% | 33.0% | 32.9% | 32.7% | 32.1% |
| Operating Margin | 19.1% | 19.1% | 19.6% | 17.2% | 15.6% | 14.6% | 13.0% | 14.3% | 13.8% | 13.1% | 12.5% |
| Net Profit Margin | 14.9% | 14.9% | 15.3% | 13.9% | 11.9% | 10.9% | 7.9% | 10.3% | 9.9% | 14.6% | 9.7% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 21.5% | 21.5% | 20.2% | 17.8% | 14.7% | 13.6% | 9.1% | 13.7% | 12.8% | 18.5% | 12.7% |
| ROA | 10.3% | 10.3% | 9.9% | 8.8% | 7.1% | 6.5% | 4.4% | 6.9% | 6.7% | 9.5% | 6.3% |
| ROIC | 13.6% | 13.6% | 13.0% | 11.0% | 9.5% | 9.0% | 7.4% | 9.6% | 9.3% | 8.5% | 8.0% |
| ROCE | 16.8% | 16.8% | 15.9% | 13.5% | 11.7% | 10.9% | 8.7% | 11.4% | 11.2% | 10.2% | 9.6% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.57 | 0.57 | 0.53 | 0.51 | 0.53 | 0.54 | 0.56 | 0.54 | 0.47 | 0.45 | 0.55 |
| Debt / EBITDA | 1.87 | 1.87 | 1.70 | 1.99 | 2.17 | 2.35 | 2.68 | 2.19 | 1.94 | 2.16 | 2.44 |
| Net Debt / Equity | — | 0.54 | 0.50 | 0.49 | 0.52 | 0.52 | 0.53 | 0.51 | 0.45 | 0.42 | 0.52 |
| Net Debt / EBITDA | 1.76 | 1.76 | 1.60 | 1.89 | 2.10 | 2.27 | 2.54 | 2.10 | 1.86 | 2.00 | 2.28 |
| Debt / FCF | — | 2.97 | 2.63 | 3.25 | 4.56 | 5.43 | 3.11 | 2.89 | 3.46 | 3.35 | 3.73 |
| Interest Coverage | 19.68 | 19.68 | 32.71 | 19.40 | 34.08 | 21.11 | 8.90 | 11.98 | 9.94 | 14.69 | 10.09 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.32 | 1.32 | 1.50 | 1.51 | 1.38 | 1.04 | 1.56 | 1.70 | 1.47 | 1.64 | 1.27 |
| Quick Ratio | 0.81 | 0.81 | 0.96 | 1.02 | 0.84 | 0.63 | 1.20 | 1.15 | 0.93 | 1.12 | 0.85 |
| Cash Ratio | 0.09 | 0.09 | 0.26 | 0.34 | 0.09 | 0.08 | 0.19 | 0.12 | 0.09 | 0.22 | 0.14 |
| Asset Turnover | — | 0.67 | 0.65 | 0.60 | 0.59 | 0.58 | 0.56 | 0.65 | 0.70 | 0.63 | 0.65 |
| Inventory Turnover | 3.63 | 3.63 | 3.64 | 3.95 | 4.04 | 4.48 | 5.89 | 5.11 | 5.20 | 5.24 | 5.95 |
| Days Sales Outstanding | — | 71.64 | 67.77 | 70.42 | 71.69 | 61.31 | 59.35 | 58.65 | 65.17 | 70.53 | 65.80 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 1.0% | 1.3% | 1.1% | 1.4% | 2.1% | 1.8% | 2.4% | 3.0% | 3.8% | 3.0% | 3.4% |
| Payout Ratio | 39.8% | 39.8% | 39.5% | 42.9% | 52.8% | 56.9% | 83.3% | 54.3% | 53.6% | 35.8% | 54.0% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 2.4% | 3.3% | 2.9% | 3.3% | 3.9% | 3.1% | 2.9% | 5.5% | 7.2% | 8.5% | 6.3% |
| FCF Yield | 2.1% | 2.9% | 2.7% | 3.0% | 3.1% | 2.3% | 5.3% | 7.2% | 7.0% | 6.1% | 6.8% |
| Buyback Yield | 1.1% | 1.5% | 1.9% | 0.0% | 0.5% | 0.2% | 3.3% | 2.6% | 4.2% | 2.4% | 2.4% |
| Total Shareholder Yield | 2.0% | 2.8% | 3.0% | 1.4% | 2.5% | 1.9% | 5.7% | 5.6% | 8.1% | 5.4% | 5.8% |
| Shares Outstanding | — | $390M | $399M | $401M | $401M | $402M | $404M | $421M | $437M | $447M | $457M |
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying ETN stock.
Eaton Corporation plc's current P/E ratio is 41.9x. The historical average is 18.9x. This places it at the 100th percentile of its historical range.
Eaton Corporation plc's current EV/EBITDA is 30.3x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 11.8x.
Eaton Corporation plc's return on equity (ROE) is 21.5%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 15.8%.
Based on historical data, Eaton Corporation plc is trading at a P/E of 41.9x. This is at the 100th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Eaton Corporation plc's current dividend yield is 0.95% with a payout ratio of 39.8%.
Eaton Corporation plc has 37.6% gross margin and 19.1% operating margin. Operating margin between 10-20% is typical for established companies.
Eaton Corporation plc's Debt/EBITDA ratio is 1.9x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
Leverage spike from acquisition
Metrics are mathematically derived from official filings.
Margin Compression Amid Record Sales
Gross margin fell to 33.5% in Q2 2026 from 37.0% a year earlier, while operating margin dropped to 16.3%, signaling cost or mix pressures despite record revenue, per quarterly results.
The sequential decline in gross margin from 35.6% in Q1 2026 to 33.5% in Q2 2026, alongside a net margin of only 9.6%, suggests that the EPS miss was driven by more than one-off items. Operating margin at 16.3% is the lowest in the ten-quarter series, indicating that cost inflation or unfavorable product mix is eroding the company's ability to convert top-line growth into profit. Investors should monitor whether this is a temporary supply chain issue or a structural shift in the earnings power of the Electrical Americas segment.
Return on Capital Decays as Debt-Fueled Growth
ROIC fell to 2.5% in Q2 2026 from 3.5% a year earlier, while ROE dropped to 4.1% from 5.3%, per reported figures, indicating that the acquisition-driven asset expansion is not yet generating commensurate returns.
The doubling of total assets to $56.2B, largely from a $10.1B increase in goodwill, has not been matched by proportional profit growth, causing ROIC to compress. The decline in ROE from 5.3% in Q2 2025 to 4.1% in Q2 2026 suggests that the company is not compounding returns on equity at the pace it did before the leverage increase. This may indicate that the acquired assets are still being integrated and have yet to achieve the targeted synergies, or that the purchase price was too rich relative to the earnings contribution.
Working Capital Efficiency Deteriorates
Cash conversion cycle lengthened to 71 days in Q2 2026 from 79 days a year earlier, driven by a rise in DSO to 70 days and DIO to 85 days, per quarterly data, signaling slower cash recovery.
The increase in days sales outstanding from 68 days in Q2 2025 to 70 days in Q2 2026, combined with a jump in days inventory outstanding from 92 to 85 days, suggests that the company is holding more inventory and taking longer to collect receivables. This may reflect supply chain disruptions or a deliberate build-up of inventory to meet strong demand, but it also ties up cash and contributes to the volatility in free cash flow. The slight improvement in DPO to 83 days from 76 days a year earlier provides some offset, but the overall CCC expansion indicates that working capital is becoming a drag on cash generation.
Leverage Doubles on Acquisition Financing
Debt-to-equity surged to 1.05 in Q2 2026 from 0.51 a year earlier, while interest coverage fell to 6.69 from 200.33, per balance sheet data, reflecting a significant increase in financial risk.
The $10.1B increase in total debt to $21.3B, largely to finance acquisitions, has pushed leverage to levels not seen in the recent series. Interest coverage of 6.69 is still adequate but represents a dramatic decline from the 200.33 in Q2 2025, indicating that the company's earnings are now more exposed to interest rate movements. The D/EBITDA ratio of 11.91 is elevated, suggesting that the market may be pricing in a higher risk premium for the company's debt. While the company's low leverage historically was a strength, this rapid increase warrants close monitoring of covenant headroom and refinancing needs.
Liquidity Cushion Thins as Debt Rises
Current ratio fell to 1.24 in Q2 2026 from 1.56 a year earlier, and quick ratio dropped to 0.79 from 1.07, per quarterly data, indicating a reduced ability to cover short-term obligations.
The decline in the current ratio, driven by a rise in current liabilities relative to current assets, suggests that the company's liquidity buffer has weakened. The quick ratio of 0.79 indicates that, excluding inventory, the company may struggle to meet its short-term obligations if cash flows were to deteriorate. However, the company's strong operating cash flow generation, albeit volatile, provides some comfort. Investors should monitor whether the company can maintain its dividend and buyback program, which exceeded free cash flow in Q2 2026, without further increasing debt.
Misapplied P/E in a Leveraged Acquisition Phase
The trailing P/E of 40.08 and forward P/E of 30.86 may mislead investors because they ignore the impact of the recent debt-financed acquisitions on earnings quality and capital structure, per valuation data.
The P/E ratio is commonly used to value ETN, but it fails to account for the significant increase in leverage and goodwill on the balance sheet. The EV/EBITDA multiple of 28.98 provides a more comprehensive view, as it incorporates the debt used to fund acquisitions. Additionally, the P/E does not reflect the potential for goodwill impairment, which could reduce equity and earnings. Investors should consider using EV/EBITDA or a normalized earnings figure that adjusts for one-time charges and the integration costs of recent acquisitions to better assess the company's true valuation.