Is Eaton (ETN) Pricing Reflecting Electrification Hopes Or DCF Reality?

Simply Wall St.01-22 14:40

If you are wondering whether Eaton's current share price still offers value, this article will walk through what the numbers are saying and how that lines up with expectations. The stock last closed ...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2605465626?lang=en_US&edition=fundamental","thumbnail":"https://images.simplywall.st/asset/company-cover/175265-main-header/1756254179472","is_english":true,"pubTime":"2026-01-22 14:40","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2605465626","market":"us","top_or_hot":-1,"title":"Is Eaton (ETN) Pricing Reflecting Electrification Hopes Or DCF Reality?","media":"Simply Wall St.","content":"<div>\n<p>If you are wondering whether Eaton's current share price still offers value, this article will walk through what the numbers are saying and how that lines up with expectations. The stock last closed ...</p>\n\n<a href=\"https://simplywall.st/stocks/us/capital-goods/nyse-etn/eaton/news/is-eaton-etn-pricing-reflecting-electrification-hopes-or-dcf\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Is Eaton (ETN) Pricing Reflecting Electrification Hopes Or DCF Reality?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nIs Eaton (ETN) Pricing Reflecting Electrification Hopes Or DCF Reality?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2026-01-22 14:40 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/us/capital-goods/nyse-etn/eaton/news/is-eaton-etn-pricing-reflecting-electrification-hopes-or-dcf><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>If you are wondering whether Eaton's current share price still offers value, this article will walk through what the numbers are saying and how that lines up with expectations. The stock last closed ...</p>\n\n<a href=\"https://simplywall.st/stocks/us/capital-goods/nyse-etn/eaton/news/is-eaton-etn-pricing-reflecting-electrification-hopes-or-dcf\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"IE00BKVL7J92.USD","symbol_name":"Legg Mason ClearBridge - US Equity Sustainability Leaders A Acc USD","start_time":0,"source_url":"https://simplywall.st/stocks/us/capital-goods/nyse-etn/eaton/news/is-eaton-etn-pricing-reflecting-electrification-hopes-or-dcf","article_id":"2605465626","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/company-cover/175265-main-header/1756254179472"],"rights":{"source":"simplywall_highlight","url":"https://simplywall.st/stocks/us/capital-goods/nyse-etn/eaton/news/is-eaton-etn-pricing-reflecting-electrification-hopes-or-dcf","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2605465626","pubTimestamp":1769064019,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"If you are wondering whether Eaton's current share price still offers value, this article will walk through what the numbers are saying and how that lines up with expectations.\nThe stock last closed at US$337.96, with returns of 2.1% over 7 days, 5.5% over 30 days, 3.3% year to date, and a 7.8% decline over the past year. The 3 year and 5 year returns sit at 121.7% and 220.2% respectively.\nRecent coverage has focused on Eaton's role in long term themes such as electrification and power...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"IE00BKVL7J92.USD":"Legg Mason ClearBridge - US Equity Sustainability Leaders A Acc USD","BK4588":"碎股","IE00BZ199S13.USD":"BNY MELLON MOBILITY INNOVATION \"B\" (USD) ACC","LU1861214812.USD":"Blackrock Future of Transport A2 USD","LU0061474960.USD":"天利环球焦点基金AU Acc","ETN":"伊顿","LU1861219969.SGD":"Blackrock Future of Transport A2 SGD-H","IE00BZ1G4Q59.USD":"LEGG MASON CLEARBRIDGE US EQUITY SUSTAINABILITY LEADER \"A\"(USD) INC (A)","LU2357125470.USD":"BNP PARIBAS ENERGY TRANSITION \"CLASSIC RH\" (USDHDG) ACC","LU2506951792.HKD":"BNP PARIBAS ENERGY TRANSITION \"CRH\" (HKDHDG)       ACC","LU0096362180.USD":"CT (LUX) I GLOBAL FOCUS \"DU\" (USD)","LU2360107325.USD":"BGF FUTURE OF TRANSPORT \"A4\" (USD) INC","LU1815333072.USD":"THREADNEEDLE (LUX) GLOBAL FOCUS \"AUP\" (USD) INC","LU2264538146.SGD":"Fullerton Lux Funds - Global Absolute Alpha A Acc SGD","IE00B19Z8W00.USD":"FTGF CLEARBRIDGE US LARGE CAP GROWTH \"A\" INC","BK4543":"AI","BK4096":"电气部件与设备","LU2294711713.HKD":"BNP PARIBAS ENERGY TRANSITION \"C\" (HKD) ACC","LU0957791311.USD":"THREADNEEDLE (LUX) GLOBAL FOCUS \"ZU\" (USD) ACC","LU0823414478.USD":"法巴经典能源转换基金","IE00B3CCJ633.GBP":"GUINNESS SUSTAINABLE ENERGY \"C\" (GBP) ACC","BK4585":"ETF&股票定投概念","LU0823414551.USD":"BNP PARIBAS ENERGY TRANSITION \"C\" (USD) INC","IE00B19Z8X17.USD":"FTGF CLEARBRIDGE US LARGE CAP GROWTH  \"AG\" (USD) ACC","LU2249611893.SGD":"BNP PARIBAS ENERGY TRANSITION \"CRH\" (SGD) ACC","IE00B2PGVK34.USD":"GUINNESS SUSTAINABLE ENERGY \"C\" (USD) ACC","BK4533":"AQR资本管理(全球第二大对冲基金)","DCF":"Dreyfus Alcentra Global Credit Income 2024 Target Term Fund, Inc","IE00BGHQF417.EUR":"GUINNESS SUSTAINABLE ENERGY \"C\" (EUR) ACC","IE00BD6J9T35.USD":"NEUBERGER BERMAN NEXT GENERATION MOBILITY \"A\" (USD) ACC","LU1064131342.USD":"Fullerton Lux Funds - Global Absolute Alpha A Acc USD","IE00B19Z9505.USD":"美盛-美国大盘成长股A Acc","LU1988902786.USD":"FULLERTON LUX FUNDS GLOBAL ABSOLUTE ALPHA \"I\" (USD) ACC","LU1074936037.SGD":"JPMorgan Funds - US Value A (acc) SGD"},"translate_title":"伊顿(ETN)的定价反映的是电气化希望还是DCF现实？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"ETN":1.5,"DCF":1.5},"content_text":"If you are wondering whether Eaton's current share price still offers value, this article will walk through what the numbers are saying and how that lines up with expectations. The stock last closed at US$337.96, with returns of 2.1% over 7 days, 5.5% over 30 days, 3.3% year to date, and a 7.8% decline over the past year. The 3 year and 5 year returns sit at 121.7% and 220.2% respectively. Recent coverage has focused on Eaton's role in long term themes such as electrification and power management, along with ongoing interest from investors who follow large capital goods companies. These stories help explain why the share price has been active recently and why opinions on its risk and return profile may be shifting. Eaton currently has a valuation score of 2/6, which means our checks flag it as undervalued on 2 of 6 measures. Next we will look at how different valuation approaches treat the stock and then finish with a simpler way to make sense of all these signals.  Eaton scores just 2/6 on our valuation checks. See what other red flags we found in the full valuation breakdown. AdvertisementApproach 1: Eaton Discounted Cash Flow (DCF) Analysis A Discounted Cash Flow, or DCF, model projects a company’s future cash flows and then discounts them back to today’s dollars to estimate what the business might be worth right now. For Eaton, the model uses a 2 Stage Free Cash Flow to Equity approach, starting from last twelve months free cash flow of about US$3.27b. Analyst inputs and extrapolated estimates point to projected free cash flow of US$7.01b in 2030, with a path of forecast and extrapolated figures between 2026 and 2035 supplied by various analyst sources and internal estimates. When all those projected cash flows are discounted back to today, the DCF model arrives at an estimated intrinsic value of roughly US$226.31 per share. Compared with the recent share price of US$337.96, this implies the stock is about 49.3% above the model’s estimate of fair value, so on this cash flow view Eaton screens as overvalued rather than cheap. Result: OVERVALUED Our Discounted Cash Flow (DCF) analysis suggests Eaton may be overvalued by 49.3%. Discover 881 undervalued stocks or create your own screener to find better value opportunities. ETN Discounted Cash Flow as at Jan 2026 Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Eaton. Approach 2: Eaton Price vs Earnings For a profitable company like Eaton, the P/E ratio is a useful way to think about what you are paying for each dollar of current earnings. It ties the share price directly to earnings, which many investors focus on when comparing established businesses. What counts as a “normal” P/E depends on how investors view growth potential and risk. Higher expected growth or lower perceived risk can support a higher P/E, while slower expected growth or higher risk usually go with a lower P/E. Eaton currently trades on a P/E of about 33.4x. That sits close to the Electrical industry average of 32.9x and below the peer group average of 48.2x, so the market is valuing Eaton’s earnings in line with its sector but below some comparable companies. Simply Wall St’s Fair Ratio for Eaton is 38.1x. This is a proprietary estimate of the P/E that might be expected given factors such as the company’s earnings growth profile, profit margins, industry, market cap and risk characteristics. Because it blends these elements, it can be more tailored than a simple comparison against peers or the industry average alone. Comparing Eaton’s current P/E of 33.4x to the Fair Ratio of 38.1x, the shares screen as undervalued on this earnings based view. Result: UNDERVALUED NYSE:ETN P/E Ratio as at Jan 2026 P/E ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1447 companies where insiders are betting big on explosive growth. Upgrade Your Decision Making: Choose your Eaton Narrative Earlier we mentioned that there is an even better way to understand valuation, so let us introduce you to Narratives, which let you set a clear story for Eaton that sits behind the numbers like your fair value, and your own expectations for future revenue, earnings and margins. A Narrative on Simply Wall St connects three things: the company story you believe, the financial forecast that follows from that story, and the fair value that falls out of those assumptions. You can create and explore Narratives on the Community page, where millions of investors share how they see a company. You can then compare each Narrative’s fair value with the current share price to help decide whether they see Eaton as attractive or expensive at today’s level. Narratives are refreshed when new facts arrive, such as earnings releases or major news. This means your view of fair value can adjust as the information changes instead of staying tied to a static model. For Eaton, one Narrative might assume a relatively cautious outlook and arrive at a fair value well below the current price. Another, more optimistic Narrative, might support a fair value comfortably above where the shares trade today. This shows how different investors can reasonably interpret the same company in very different ways. Do you think there's more to the story for Eaton? Head over to our Community to see what others are saying! NYSE:ETN 1-Year Stock Price Chart  This article by Simply Wall St is general in nature. We provide commentary based on historical data\n    and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your\n    financial situation. We aim to bring you long-term focused analysis driven by fundamental data.\n    Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.\n    Simply Wall St has no position in any stocks mentioned.Valuation is complex, but we're here to simplify it.Discover if Eaton might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.Access Free AnalysisHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":false,"code":"91000000","status":"200"},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"tenantId":"TBGLOBAL","deviceId":"web-server-community-laohu8-v3","version":"4.36.0","shortVersion":"4.36.0","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2605465626","isCrawlerRequest":true}