Eaton Corporation plc (ETN) DCF Valuation
Transparent DCF models put Eaton Corporation plc (ETN)'s fair value in a range of $109.51 – $198.89 — the low end is TGM's conservative base case (5% FCF growth, 10% discount), the high end the analyst consensus (FMP). Today's price of $401.72 sits above that range — by these conservative assumptions it looks richly valued; the reverse-DCF below is the better lens for a high-growth name.
Reverse DCF: at today's $401.72, the market is pricing in roughly +20.7%/yr free-cash-flow growth over the next decade (at a 10% required return) — versus its actual 5-year FCF CAGR of +13.6%. The price is betting on acceleration above its track record.
Current Price
$401.72
Fair-Value Range
$109.51 – $198.89
Market-Implied Growth
+20.7%/yr
vs +13.6% 5Y actual
ETN DCF Fair Value Calculator
Edit the assumptions to see how they change the estimated fair value. Illustrative model — not investment advice. Defaults to a conservative base case; the analyst (FMP) DCF, where available, is shown as a reference below.
Base inputs: FCF $3.2B · 0.39B shares · net debt $9.9B
Estimated Fair Value
$109.51
-72.7% vs $401.72
Sensitivity — fair value by discount rate × terminal growth
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 5.0%/yr FCF growth and 10-year horizon fixed. Green = above today's $401.72; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 8.0% | $142 | $151 | $161 | $173 | $188 |
| 9.0% | $119 | $125 | $131 | $139 | $149 |
| 10.0% | $101 | $105 | $110 | $115 | $121 |
| 11.0% | $86.41 | $89.48 | $92.91 | $96.76 | $101 |
| 12.0% | $74.99 | $77.29 | $79.84 | $82.67 | $85.83 |
About Eaton Corporation plc
Eaton Corporation plc, established in 1911 and headquartered in Dublin, Ireland, functions as an international enterprise specializing in power management solutions. The company's Electrical Americas and Global division supplies a comprehensive array of electrical and industrial components. This encompasses power distribution and assembly systems, residential products, advanced power quality and connectivity devices, wiring components, and circuit protection. Additionally, it offers utility power distribution equipment, power reliability services, and specialized equipment for demanding environments, including hazardous duty electrical gear, emergency lighting, fire detection systems, explosion-proof instrumentation, and structural support systems. Through its Aerospace segment, Eaton provides crucial systems and parts for both commercial and military aircraft manufacturers, associated aftermarket services, and various industrial applications. Its offerings include hydraulic and electro-hydraulic components (such as pumps, motors, power units, hoses, and fittings), flight control systems (like valves, actuators, sensors, flap and slat systems, and nose wheel steering), fluid conveyance products (hoses, tubing, fittings, and sealing/ducting products), fuel management solutions (air-to-air refueling, pumps, and inerting products), oxygen generation systems, thermal management products, and wiring connectors and cables. This segment also produces filters, strainers, cartridges, and golf grips. The Vehicle segment caters to the automotive industry with essential powertrain and engine components. These include transmissions, clutches, hybrid power systems, superchargers, engine valves and valve actuation systems, locking and limited-slip differentials, transmission controls, and fuel vapor components. Lastly, the eMobility segment is dedicated to advanced electrification solutions for vehicles. Its product range features voltage inverters and converters, onboard chargers, fuses, circuit protection units, vehicle control systems, power distribution systems, fuel tank isolation valves, and hybrid systems for commercial vehicles.
- Sector
- Industrials
- Industry
- Industrial - Machinery
- CEO
- Paulo Ruiz Sternadt