Eaton Corporation plc (ETN) Financial Ratios
30 years of historical data (1996–2025) · Industrials · Industrial - Machinery
EV/EBITDA
↑
28.42
↑+34% vs avg
5yr avg: 21.24
30Y Low6.2·High24.5
P/FCF
↓
35.65
+2% vs avg
5yr avg: 35.06
30Y Low8.3·High162.0
P/B Ratio
↑
8.22
↑+55% vs avg
5yr avg: 5.30
30Y Low1.3·High7.2
ROE
↑
21.5%
↓+23% vs avg
5yr avg: 17.6%
30Y Low6%·High26%
Debt/EBITDA
↓
1.87
↓-7% vs avg
5yr avg: 2.02
30Y Low1.3·High4.6
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
ETN Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
Eaton Corporation plc trades at 39.3x earnings, 28% above its 5-year average of 30.7x, sitting at the 100th percentile of its historical range. Compared to the Industrials sector median P/E of 25.7x, the stock trades at a premium of 53%. On a free-cash-flow basis, the stock trades at 35.6x P/FCF, roughly in line with the 5-year average of 35.1x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $159.4B | $124.1B | $132.5B | $96.6B | $62.9B | $69.4B | $48.5B | $39.9B | $30.0B | $35.3B | $30.6B |
| Enterprise Value | $170.0B | $134.6B | $141.8B | $105.9B | $71.7B | $78.0B | $56.5B | $48.1B | $37.2B | $42.5B | $38.4B |
| P/E Ratio → | 39.28 | 30.45 | 34.93 | 30.03 | 25.56 | 32.36 | 34.42 | 18.04 | 13.98 | 11.83 | 15.97 |
| P/S Ratio | 5.81 | 4.52 | 5.33 | 4.16 | 3.03 | 3.54 | 2.72 | 1.86 | 1.39 | 1.73 | 1.55 |
| P/B Ratio | 8.22 | 6.37 | 7.15 | 5.07 | 3.68 | 4.22 | 3.24 | 2.47 | 1.86 | 2.04 | 2.05 |
| P/FCF | 35.65 | 27.74 | 37.67 | 33.69 | 32.51 | 43.71 | 19.00 | 13.92 | 14.33 | 16.46 | 14.77 |
| P/OCF | 35.65 | 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
ETN EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
Eaton Corporation plc's enterprise value stands at 28.4x EBITDA, 34% above its 5-year average of 21.2x. The Industrials sector median is 13.7x, placing the stock at a 108% premium on an enterprise-value basis.
| 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 | 28.42 | 22.51 | 24.51 | 21.52 | 17.10 | 20.58 | 18.03 | 12.20 | 9.58 | 11.84 | 11.30 |
| EV / EBIT | 32.50 | 25.91 | 30.11 | 26.25 | 23.92 | 25.67 | 28.72 | 17.03 | 13.82 | 11.76 | 16.32 |
| EV / FCF | — | 30.10 | 40.30 | 36.94 | 37.07 | 49.13 | 22.11 | 16.81 | 17.79 | 19.81 | 18.50 |
ETN Profitability
Margins and return-on-capital ratios measuring operating efficiency
Eaton Corporation plc earns an operating margin of 19.1%, above the Industrials sector average of 4.7%. Operating margins have expanded from 17.2% to 19.1% over the past 3 years, signaling improving operational efficiency. ROE of 21.5% indicates solid capital efficiency, compared to the sector median of 8.2%. ROIC of 13.6% represents solid returns on invested capital versus a sector median of 6.3%.
Margins
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% |
Return on Capital
| 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% |
ETN Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
Eaton Corporation plc carries a Debt/EBITDA ratio of 1.9x, which is manageable (40% below the sector average of 3.1x). Net debt stands at $10.5B ($11.2B total debt minus $622M cash). Interest coverage of 19.7x signals virtually no risk of debt distress — earnings comfortably cover interest obligations.
| 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 | — | 2.36 | 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 |
ETN Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
A current ratio of 1.32x means Eaton Corporation plc can comfortably meet its short-term obligations, though there is limited excess liquidity. The quick ratio of 0.81x is notably lower than the current ratio, indicating a significant portion of current assets is tied up in inventory. The current ratio has declined from 1.51x to 1.32x over the past 3 years.
| 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 |
ETN Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Eaton Corporation plc returns 2.2% to shareholders annually — split between a 1.0% dividend yield and 1.2% buyback yield. The payout ratio of 39.8% is conservative, leaving significant room for dividend growth or reinvestment. The earnings yield of 2.5% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
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% |
Total Shareholder Return Metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 2.5% | 3.3% | 2.9% | 3.3% | 3.9% | 3.1% | 2.9% | 5.5% | 7.2% | 8.5% | 6.3% |
| FCF Yield | 2.8% | 3.6% | 2.7% | 3.0% | 3.1% | 2.3% | 5.3% | 7.2% | 7.0% | 6.1% | 6.8% |
| Buyback Yield | 1.2% | 1.5% | 1.9% | 0.0% | 0.5% | 0.2% | 3.3% | 2.6% | 4.2% | 2.4% | 2.4% |
| Total Shareholder Yield | 2.2% | 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 |
Peer Comparison
Compare ETN with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 ETNYou | $159B | 39.3 | 28.4 | 35.6 | 37.6% | 19.1% | 21.5% | 13.6% | 1.9 |
 EMR | $78B | 34.3 | 17.8 | 29.2 | 52.8% | 19.6% | 9.6% | 8.2% | 2.7 |
 HON | $132B | 28.4 | 19.4 | 24.6 | 36.9% | 17.5% | 27.3% | 12.6% | 4.3 |
 ROK | $49B | 56.8 | 29.9 | 36.1 | 48.1% | 17.1% | 23.5% | 15.1% | 2.1 |
 PH | $110B | 32.2 | 24.0 | 33.0 | 36.9% | 20.5% | 27.4% | 13.4% | 1.9 |
 IR | $30B | 52.3 | 17.3 | 24.3 | 38.5% | 18.5% | 5.7% | 7.8% | 2.5 |
 AME | $54B | 36.7 | 29.6 | 32.2 | 36.4% | 26.2% | 14.6% | 12.1% | 1.2 |
 HUBB | $27B | 30.7 | 21.4 | 30.9 | 35.5% | 20.8% | 24.8% | 17.1% | 1.9 |
 ACCO | $371M | 9.1 | 6.8 | 7.3 | 29.8% | 7.1% | 6.5% | 5.5% | 5.1 |
 AYI | $9B | 23.2 | 13.1 | 16.7 | 47.8% | 13.7% | 15.5% | 16.4% | 1.4 |
 GE | $300B | 35.1 | 30.8 | 41.2 | 36.8% | 19.1% | 45.3% | 24.7% | 2.1 |
| Industrials Median | — | 25.7 | 13.7 | 21.2 | 33.0% | 4.7% | 8.2% | 6.3% | 3.1 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
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Start ComparisonETN — Frequently Asked Questions
Quick answers to the most common questions about buying ETN stock.
What is Eaton Corporation plc's P/E ratio?
Eaton Corporation plc's current P/E ratio is 39.3x. The historical average is 18.9x. This places it at the 100th percentile of its historical range.
What is Eaton Corporation plc's EV/EBITDA?
Eaton Corporation plc's current EV/EBITDA is 28.4x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 11.8x.
What is Eaton Corporation plc's ROE?
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%.
Is ETN stock overvalued?
Based on historical data, Eaton Corporation plc is trading at a P/E of 39.3x. This is at the 100th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
What is Eaton Corporation plc's dividend yield?
Eaton Corporation plc's current dividend yield is 1.02% with a payout ratio of 39.8%.
What are Eaton Corporation plc's profit margins?
Eaton Corporation plc has 37.6% gross margin and 19.1% operating margin. Operating margin between 10-20% is typical for established companies.
How much debt does Eaton Corporation plc have?
Eaton Corporation plc's Debt/EBITDA ratio is 1.9x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.