Latest Ratios: P/E Ratio 37.8x · EV/EBITDA 27.5x · 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 | $153.6B | $124.1B | $132.5B | $96.6B | $62.9B | $69.4B | $48.5B | $39.9B | $30.0B | $35.3B | $30.6B |
| Enterprise Value | $164.2B | $134.6B | $141.8B | $105.9B | $71.7B | $78.0B | $56.5B | $48.1B | $37.2B | $42.5B | $38.4B |
| P/E Ratio → | 37.83 | 30.45 | 34.93 | 30.03 | 25.56 | 32.36 | 34.42 | 18.04 | 13.98 | 11.83 | 15.97 |
| P/S Ratio | 5.60 | 4.52 | 5.33 | 4.16 | 3.03 | 3.54 | 2.72 | 1.86 | 1.39 | 1.73 | 1.55 |
| P/B Ratio | 7.92 | 6.37 | 7.15 | 5.07 | 3.68 | 4.22 | 3.24 | 2.47 | 1.86 | 2.04 | 2.05 |
| P/FCF | 34.36 | 27.74 | 37.67 | 33.69 | 32.51 | 43.71 | 19.00 | 13.92 | 14.33 | 16.46 | 14.77 |
| P/OCF | 34.36 | 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 | 27.46 | 22.51 | 24.51 | 21.52 | 17.10 | 20.58 | 18.03 | 12.20 | 9.58 | 11.84 | 11.30 |
| EV / EBIT | 31.40 | 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 |
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 | — | 2.36 | 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 |
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 | 1.1% | 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 | 2.6% | 3.3% | 2.9% | 3.3% | 3.9% | 3.1% | 2.9% | 5.5% | 7.2% | 8.5% | 6.3% |
| FCF Yield | 2.9% | 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 | 2.3% | 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 |
Integration and Leverage Risk
Based on current market pricing, ETN trades at a forward P/E of 30.18, which suggests investors are pricing in significant long-term growth from electrification trends, despite the company's recent earnings volatility and the substantial increase in debt levels observed in the most recent quarterly financial filings.
The current valuation multiple appears to be at the high end of the historical range, indicating that the market is treating ETN as a secular growth play rather than a traditional industrial machinery firm. Investors should monitor whether the current growth rate can justify this premium, particularly as the company faces potential margin compression from rising input costs and integration challenges.
As reported in recent financial statements, ETN's ROIC has compressed to 2.5% in 2026Q1, a notable decline from historical levels that reflects the dilutive impact of recent aggressive capital deployment and the ballooning goodwill on the balance sheet following significant inorganic growth initiatives.
The decline in return on invested capital suggests that the company is currently struggling to generate immediate returns on its massive acquisition spend. This trend warrants further investigation to determine if the current capital allocation strategy will eventually yield the expected synergies or if it will continue to weigh on long-term shareholder value creation.
According to quarterly data, ETN's cash conversion cycle has fluctuated, reaching 78 days in 2026Q1, which highlights the inherent difficulty in managing inventory and receivables within a complex, project-heavy industrial manufacturing environment that is currently experiencing significant supply chain and operational shifts.
The persistence of a high cash conversion cycle suggests that the company's working capital efficiency is being challenged by its project-based revenue model. Investors should monitor whether the company can optimize its inventory and accounts receivable management to improve cash flow generation in the coming quarters.
Based on the provided balance sheet data, ETN's debt-to-equity ratio has climbed to 1.10 in 2026Q1, a significant departure from the conservative leverage profile maintained in previous years, which indicates a shift toward a more aggressive capital structure to support ongoing inorganic growth strategies.
While the company's interest coverage remains adequate, the rapid accumulation of debt increases the firm's sensitivity to interest rate fluctuations and potential macro downturns. This leverage profile warrants close monitoring, as it reduces the company's financial flexibility compared to its historical position of relative strength.
The P/E ratio is frequently misapplied to ETN because it obscures the impact of non-recurring acquisition-related charges and the lumpy nature of project-based revenue recognition, which can lead to a distorted view of the company's true underlying earnings power and operational efficiency.
Analysts should instead focus on adjusted EBITDA or free cash flow metrics to better capture the company's core earning power, as these measures are less susceptible to the accounting noise inherent in the company's current M&A-heavy strategy. Relying solely on P/E may lead to an incomplete assessment of the firm's valuation relative to its peers.
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 37.8x. 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 27.5x. 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 37.8x. 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 1.05% 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.