NYSE · ETN

Eaton Corporation plc

Industrials · Electrical Equipment & Parts

$409.15▼ 1.46% ($6.07)at close

After hours$412.82▲ 0.90%7:51 PM ET

52-week

$311.92$478.00

What the market price implies · Reverse DCF

To support a price of $409.15, this model requires revenue to grow by 17.99%/yr over the next 10 years, compounded annually.

Historical revenue grew by 8.74%/yr over the past 4 years. The required annual growth rate is 9.25 percentage points higher.

Selected forecast · Base scenario

8.61%/yr · actual 10-year annualized revenue growth

Year 1 growth: 13.49%

Market-implied · Base operating assumptions + edited margins

17.99%/yr · flat 10-year annualized revenue growth

Reverse DCF solves revenue growth itself using Base operating assumptions and your edited margins. Changing forecast growth alone does not change the implied rate. This is a model-implied requirement, not an analyst forecast.

Valuation

Recommended · Revenue & margin DCF

Price used

$409.15

Estimated value / share

$189.06

Base scenario

This estimate is 53.79% below the price used.

USD · TTM ending 2026-06-30

Year 1 growth 13.49% · Ending margin 17.68% · Discount rate 10.33%

Assumption scenarios, not statistical confidence intervals.

Method, dates & sources

Estimated from future revenue, operating margins, and the investment needed to support them.

Price timestamp: Sep 10, 2026, 8:00 PM UTC
Financial statement period: TTM ending 2026-06-30
Data refreshed: Sep 11, 2026, 4:30 AM UTC · cache

Why this method?

FCFF is positive, but the series is too unstable to anchor a direct cash-flow CAGR and the business still fails the steady-state comparability checks. Use a revenue-and-margin transition model instead of normalizing and compounding current FCFF.

Is FCFF positive and has it been for 3+ consecutive years? 30 consecutive positive FCFF years are available.

Is FCFF stable (not swinging >30% year to year)? The largest recent FCFF swing is 34.8%.

Do you have 5+ years of positive FCFF history? 30 consecutive positive FCFF years are available.

Is the business model structurally similar to what it should be in 10 years? Revenue is still growing 21.4%, above the 15.0% maturity threshold, so a steady-state FCFF model would lean too heavily on a business still scaling.

Price vs Fundamentals

Why The Stock Is Moving

Optimism is getting priced inHigh confidence

1Y Price: 12.95%Revenue (TTM): 15.53%FCF (TTM): 24.28%P/FCF: 75th pct

What changed

The stock rose 12.95% over the last year. Revenue grew 15.53% over the trailing twelve months. Operating margin moved from 19.43% to 17.68%. Free cash flow grew 24.28% over the trailing twelve months.

What the market seems to be pricing

The stock is trading toward the richer end of its historical P/FCF range (75th percentile) while business metrics are improving. More of the upside is already embedded in the multiple now.

What would invalidate this read

Operating margin is at 17.68% — continued expansion would be needed to justify the premium. Revenue growth of 15.53% is encouraging, but any deceleration puts the stretched multiple at risk. This read changes if revenue, margins, and cash flow continue to improve faster than expected — in that case the richer multiple could still prove conservative.

Performance

Return analysis

Company profile

Eaton Corp.

CEOPaulo Ruiz Sternadt

SectorIndustrials

IndustryElectrical Equipment & Parts

Employees97,303

IPO dateJun 1, 1972

https://www.eaton.com

Market multiples

Forward P/E—

EV/EBITDA22.56

Enterprise value$134.19B

Stock splits

Mar 1, 2011↑ Forward

Every 1 shares became 2

+100%

Feb 24, 2004↑ Forward

Every 1 shares became 2

+100%

Jan 2, 2001↑ Forward

Every 8677 shares became 10000

+15%

Jun 29, 1993↑ Forward

Every 1 shares became 2

+100%

Sep 20, 1988↑ Forward

Every 2 shares became 3

+50%

Oct 3, 1979↑ Forward

Every 2 shares became 3

+50%

Profitability & growth

Revenue growth21.39%

Gross margin35.9%▼0.6ppvs FY2024

Operating margin17.68%▼0.5ppvs FY2024

ROE19.69%▼1.9ppvs FY2025

Analyst consensus

RatingBuy

Target price$502.29▲22.76%

Buy

Hold

Sell

Analyst ratings tend to be lagging indicators. Use as one signal among many.

Earnings

Full quarter-by-quarter history of actuals vs estimates. Switch into compare mode to inspect one metric year-over-year.

Next report

Nov 3, 2026

Q4 FY26 · EPS est $3.53 · Revenue est $8.48B

View

Dividends

$4.34/shareQuarterlyDividend Achiever · 24yrSafe

ETN pays a dividend with a 1.06% dividend yield, 24 consecutive years of growth, growing at 7.59% annually, covered 2.2× by free cash flow.

Dividend Yield

1.06%

Annual Div / Share

$4.34

5yr CAGR

+7.59%

Doubles every ~9.5yr

Payout Ratio

43.5%

Safe

Dividend Growth Rate

3yr CAGR

+8.58%

5yr CAGR

+7.59%

10yr CAGR

+6.74%

Dividend Safety

9/10Safe

Dividend History

Annualized dividend cycles per share

YearAnnual DivYoY

2026$4.34+6.9%

2025$4.06+10.3%

2024$3.68+8.6%

2023$3.39+6.3%

2022$3.19+6.0%

2021$3.01+3.8%

2020$2.90+3.9%

Income Projection

Invest

Growth rate:

Reinvest dividends

Today

$11/yr

$1/mo

In 5 yrs

$15/yr+44%

$1/mo

In 10 yrs

$22/yr+108%

$2/mo

Today	In 5 yrs	In 10 yrs
$11/yr $1/mo	$15/yr+44% $1/mo	$22/yr+108% $2/mo

Yield-on-cost grows from 1.06% → 2.21% over 10yr

Analysis

Dividend Strengths

Dividend Achiever

ETN has raised its dividend for 24 consecutive years — qualifying as a Dividend Achiever, demonstrating long-term commitment to shareholder income.

Well-covered by free cash flow

The dividend is covered 2.2× by free cash flow, indicating the company generates sufficient cash to sustain and potentially grow the payout without straining its finances.

Strong dividend growth rate

The 5-year CAGR of 7.59% meaningfully outpaces inflation, compounding real income growth for long-term holders.

Risks to Watch

No strong risk signal stands out from the latest period pair.

NYSE · ETN

Eaton Corporation plc

Industrials · Electrical Equipment & Parts

$409.15▼ 1.46% ($6.07)at close

After hours$412.82▲ 0.90%7:51 PM ET

52-week

$311.92$478.00

What the market price implies · Reverse DCF

To support a price of $409.15, this model requires revenue to grow by 17.99%/yr over the next 10 years, compounded annually.

Historical revenue grew by 8.74%/yr over the past 4 years. The required annual growth rate is 9.25 percentage points higher.

Selected forecast · Base scenario

8.61%/yr · actual 10-year annualized revenue growth

Year 1 growth: 13.49%

Market-implied · Base operating assumptions + edited margins

17.99%/yr · flat 10-year annualized revenue growth

Valuation

Recommended · Revenue & margin DCF

Price used

$409.15

Estimated value / share

$189.06

Base scenario

This estimate is 53.79% below the price used.

USD · TTM ending 2026-06-30

Year 1 growth 13.49% · Ending margin 17.68% · Discount rate 10.33%

Assumption scenarios, not statistical confidence intervals.

Method, dates & sources

Estimated from future revenue, operating margins, and the investment needed to support them.

Price timestamp: Sep 10, 2026, 8:00 PM UTC
Financial statement period: TTM ending 2026-06-30
Data refreshed: Sep 11, 2026, 4:30 AM UTC · cache

Why this method?

Is FCFF positive and has it been for 3+ consecutive years? 30 consecutive positive FCFF years are available.

Is FCFF stable (not swinging >30% year to year)? The largest recent FCFF swing is 34.8%.

Do you have 5+ years of positive FCFF history? 30 consecutive positive FCFF years are available.

Price vs Fundamentals

Why The Stock Is Moving

Optimism is getting priced inHigh confidence

1Y Price: 12.95%Revenue (TTM): 15.53%FCF (TTM): 24.28%P/FCF: 75th pct

What changed

What the market seems to be pricing

The stock is trading toward the richer end of its historical P/FCF range (75th percentile) while business metrics are improving. More of the upside is already embedded in the multiple now.

What would invalidate this read

Performance

Return analysis

Company profile

Eaton Corp.

CEOPaulo Ruiz Sternadt

SectorIndustrials

IndustryElectrical Equipment & Parts

Employees97,303

IPO dateJun 1, 1972

https://www.eaton.com

Market multiples

Forward P/E—

EV/EBITDA22.56

Enterprise value$134.19B

Stock splits

Mar 1, 2011↑ Forward

Every 1 shares became 2

+100%

Feb 24, 2004↑ Forward

Every 1 shares became 2

+100%

Jan 2, 2001↑ Forward

Every 8677 shares became 10000

+15%

Jun 29, 1993↑ Forward

Every 1 shares became 2

+100%

Sep 20, 1988↑ Forward

Every 2 shares became 3

+50%

Oct 3, 1979↑ Forward

Every 2 shares became 3

+50%

Profitability & growth

Revenue growth21.39%

Gross margin35.9%▼0.6ppvs FY2024

Operating margin17.68%▼0.5ppvs FY2024

ROE19.69%▼1.9ppvs FY2025

Analyst consensus

RatingBuy

Target price$502.29▲22.76%

Buy

Hold

Sell

Analyst ratings tend to be lagging indicators. Use as one signal among many.

Earnings

Full quarter-by-quarter history of actuals vs estimates. Switch into compare mode to inspect one metric year-over-year.

Next report

Nov 3, 2026

Q4 FY26 · EPS est $3.53 · Revenue est $8.48B

View

Dividends

$4.34/shareQuarterlyDividend Achiever · 24yrSafe

ETN pays a dividend with a 1.06% dividend yield, 24 consecutive years of growth, growing at 7.59% annually, covered 2.2× by free cash flow.

Dividend Yield

1.06%

Annual Div / Share

$4.34

5yr CAGR

+7.59%

Doubles every ~9.5yr

Payout Ratio

43.5%

Safe

Dividend Growth Rate

3yr CAGR

+8.58%

5yr CAGR

+7.59%

10yr CAGR

+6.74%

Dividend Safety

9/10Safe

Dividend History

Annualized dividend cycles per share

YearAnnual DivYoY

2026$4.34+6.9%

2025$4.06+10.3%

2024$3.68+8.6%

2023$3.39+6.3%

2022$3.19+6.0%

2021$3.01+3.8%

2020$2.90+3.9%

Income Projection

Invest

Growth rate:

Reinvest dividends

Today

$11/yr

$1/mo

In 5 yrs

$15/yr+44%

$1/mo

In 10 yrs

$22/yr+108%

$2/mo

Today	In 5 yrs	In 10 yrs
$11/yr $1/mo	$15/yr+44% $1/mo	$22/yr+108% $2/mo

Yield-on-cost grows from 1.06% → 2.21% over 10yr

Analysis

Dividend Strengths

Dividend Achiever

ETN has raised its dividend for 24 consecutive years — qualifying as a Dividend Achiever, demonstrating long-term commitment to shareholder income.

Well-covered by free cash flow

The dividend is covered 2.2× by free cash flow, indicating the company generates sufficient cash to sustain and potentially grow the payout without straining its finances.

Strong dividend growth rate

The 5-year CAGR of 7.59% meaningfully outpaces inflation, compounding real income growth for long-term holders.

Risks to Watch

No strong risk signal stands out from the latest period pair.