Latest Ratios: P/E Ratio 34.2x · EV/EBITDA 22.3x · 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 | $132.7B | $124.1B | $132.5B | $96.6B | $62.9B | $69.4B | $48.5B | $39.9B | $30.0B | $35.3B | $30.6B |
| Enterprise Value | $143.2B | $134.6B | $141.8B | $105.9B | $71.7B | $78.0B | $56.5B | $48.1B | $37.2B | $42.5B | $38.4B |
| P/E Ratio → | 34.15 | 30.45 | 34.93 | 30.03 | 25.56 | 32.36 | 34.42 | 18.04 | 13.98 | 11.83 | 15.97 |
| P/S Ratio | 4.15 | 4.52 | 5.33 | 4.16 | 3.03 | 3.54 | 2.72 | 1.86 | 1.39 | 1.73 | 1.55 |
| P/B Ratio | 6.84 | 6.37 | 7.15 | 5.07 | 3.68 | 4.22 | 3.24 | 2.47 | 1.86 | 2.04 | 2.05 |
| P/FCF | 30.40 | 34.92 | 37.67 | 33.69 | 32.51 | 43.71 | 19.00 | 13.92 | 14.33 | 16.46 | 14.77 |
| P/OCF | 29.67 | 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 | 22.26 | 21.59 | 24.51 | 21.52 | 17.10 | 20.58 | 18.03 | 12.20 | 9.58 | 11.84 | 11.30 |
| EV / EBIT | 27.39 | 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 | 1.79 | 1.79 | 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 | 1.69 | 1.69 | 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 | 1.2% | 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 | 2.9% | 3.3% | 2.9% | 3.3% | 3.9% | 3.1% | 2.9% | 5.5% | 7.2% | 8.5% | 6.3% |
| FCF Yield | 3.3% | 2.9% | 2.7% | 3.0% | 3.1% | 2.3% | 5.3% | 7.2% | 7.0% | 6.1% | 6.8% |
| Buyback Yield | 1.4% | 1.5% | 1.9% | 0.0% | 0.5% | 0.2% | 3.3% | 2.6% | 4.2% | 2.4% | 2.4% |
| Total Shareholder Yield | 2.6% | 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 34.2x. The historical average is 18.9x. This places it at the 93th percentile of its historical range.
Eaton Corporation plc's current EV/EBITDA is 22.3x. 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 34.2x. This is at the 93th 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 1.22% 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 1.8x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
Acquisition-driven leverage and goodwill concentration
Metrics are mathematically derived from official filings.
Premium Multiples Pricing Electrification Growth
Based on reported figures, ETN trades at 31.26 trailing and 24.04 forward P/E with a 1.27 PEG, a premium to Honeywell at 14.66 P/E that suggests the market is pricing sustained electrification growth into the stock.
The compression from 31.26 trailing to 24.04 forward P/E implies consensus expects meaningful earnings expansion, and the 1.27 PEG suggests that growth is not yet fully discounted on a growth-adjusted basis. Against the peer set, ETN sits closer to Rockwell and Ingersoll Rand on multiples than to Honeywell, which may indicate investors are valuing it as a specialized electrification proxy rather than a conventional machinery business. The 35.74 price-to-free-cash-flow multiple leaves limited margin for error if quarterly cash generation remains as lumpy as recent working capital swings imply.
Margins Compressing Despite Revenue Acceleration
As reported in the quarterly figures, ETN's gross margin slipped to 34.7% in Q3 2026 from a 37.0% to 38.9% range through 2024 and 2025, while operating margin fell to 17.8% from roughly 19% to 21%.
Gross margin compression alongside sharply higher revenue suggests growth is being pursued through lower-margin volume or mix dilution rather than pricing power alone. Net margin of 12.0% in Q3 2026 sits below the 14% to 16% range of 2024 and 2025, and compared with AMETEK at 20.0% and Parker-Hannifin at 19.0%, ETN's profitability now looks less differentiated than its premium valuation would imply. Investors should monitor whether margin recovery in Electrical Americas can offset dilution from acquired and lower-margin businesses.
Debt Rising From Historically Conservative Base
According to the reported balance sheet, ETN's debt-to-equity rose from 0.57 to 1.00 by Q3 2026 as total debt nearly doubled to $20.9B, while interest coverage fell from roughly 20x in 2025 to 7.92x.
The shift from a very low leverage posture to a debt-to-equity of 1.00 reflects acquisition-related borrowing that appears to have materially changed the company's risk profile. Debt-to-EBITDA of 13.34 in Q3 2026 is elevated relative to the 6.4x to 7.6x range seen through 2024 and 2025, which warrants further investigation into refinancing timing and maturity structure. Interest coverage remains adequate on reported figures, but the trend suggests debt service comfort is declining and should be monitored closely.
Working Capital Absorbing Cash in 2026
Based on ETN's reported figures, the cash conversion cycle lengthened to 71 days in Q3 2026 from 83 to 90 days in late 2025, while days payable outstanding fell to 89 from roughly 96 to 101.
Lower payables days alongside a shorter cash conversion cycle is an unusual combination that may reflect shifting supplier terms or the working capital profile of acquired businesses rather than a clear operational improvement. Asset turnover of 0.16 is low in absolute terms, consistent with a goodwill-heavy asset base that dilutes efficiency metrics. Working capital outflows of $614 million in Q1 2026 suggest cash conversion is sensitive to timing and should not be extrapolated from any single quarter.
Returns Diluted by Acquisition Capital Base
As reported in the quarterly data, ETN's ROIC of 2.9% in Q3 2026 sits below the 3.2% to 3.5% range of 2024 and 2025, while ROE of 5.2% remains depressed relative to peers such as Honeywell at 33.3% and Rockwell at 32.9%.
The ROIC decline from roughly 3.5% to 2.9% implies that newly deployed acquisition capital is earning returns below the historical base, consistent with goodwill now representing about 35% of total assets. Compared with Honeywell at 12.6% and Rockwell at 15.1% ROIC, ETN's current returns look structurally lower, which suggests the premium valuation depends on expected returns from integration and electrification growth that are not yet visible in the reported figures. The gap warrants further investigation into how quickly acquired businesses can be brought to historical return levels.
Premium Valuation Assumes Unproven Returns
Based on the reported figures, the strongest challenge to the bull case is that ETN's 35.74 price-to-free-cash-flow and 6.54 price-to-book multiples rest on returns on capital that have not yet recovered, with ROIC at 2.9% versus 12.6% at Honeywell.
The most-cited bull argument is that electrification demand will restore margins and returns, but the reported figures show gross margin, operating margin, and ROIC all moving lower as acquired capital entered the base, which suggests the thesis is not yet visible in the numbers. A reasonable interpretation is that the market may be pricing a successful integration as already achieved, leaving limited room for execution slippage. Investors should monitor whether ROIC recovers toward the historical 3.2% to 3.5% range within the next several quarters, as failure to do so would challenge the premium multiple.