What is Eaton Corporation plc (ETN) DCF Fair Value and Intrinsic Value in 2026?

Eaton Corporation plc (ETN) intrinsic value is calculated using conservative multi-stage Discounted Cash Flow (DCF) models, 5-year free cash flow trajectories, Graham Numbers, and owner earnings multiples. LocalAlpha tracks real-time margin of safety against live market prices.

What is Eaton Corporation plc's historical Return on Invested Capital (ROIC) and Moat Rating?

Eaton Corporation plc operates in the Industrials sector (Specialty Industrial Machinery) with an economic moat rating of WIDE. LocalAlpha tracks 5-year audited quarterly ROIC, operating margin stability, and balance sheet solvency ratios.

What is Eaton Corporation plc's financial health rating and Piotroski F-Score?

Eaton Corporation plc's balance sheet quality is evaluated using the 9-point Piotroski F-Score, Altman Z-Score solvency model, debt-to-equity ratio, and quick/current liquidity coverage to guard against financial distress.

How does LocalAlpha monitor Eaton Corporation plc (ETN) for quarterly SEC filing thesis breaks?

LocalAlpha audits Eaton Corporation plc's 10-K, 10-Q, and 8-K regulatory filings on SEC EDGAR within 15 minutes of release. If reported metrics breach an investor's custom ROIC floor, operating margin boundary, or qualitative risk criteria, an autonomous breach audit is dispatched immediately.

StocksETN

ETN

Eaton Corporation, PLCIndustrials / Specialty Industrial MachineryINTACT

Eaton Corporation plc operates as a power management company in the United States, Canada, Latin America, Europe, and the Asia Pacific. It operates through Electrical Americas, Electrical Global, Aerospace, Vehicle, and eMobility segments. The company offers electrical and industrial components, power distribution and assemblies, residential products, single- and three-phase power quality and connectivity products, wiring devices, circuit protection products, utility power distribution products, and power reliability equipment; and hazardous duty electrical equipment, emergency lighting, fire detection, intrinsically safe explosion-proof instrumentation, and structural support systems. It also provides pumps, motors, hydraulic power units, hoses and fittings, and electro-hydraulic pumps; valves, cylinders, electronic controls, electromechanical actuators, sensors, aircraft flap and slat systems, and nose wheel steering systems; hose and thermoplastic tubing products, fittings, adapters, couplings, and sealing and ducting products; air-to-air refueling systems, fuel pumps, fuel inerting products, sensors, and adapters and regulators; oxygen generation systems, payload carriages, and thermal management products; wiring connectors and cables; and hydraulic and bag filters, strainers and cartridges, and golf grips for manufacturers of commercial and military aircraft, related aftermarket customers, and industrial applications. In addition, the company offers transmissions, clutches, hybrid power systems, superchargers, engine valves and valve actuation systems, locking and limited slip differentials, transmission controls, and fuel vapor components for the vehicle industry; and voltage inverters, converters, fuses, circuit protection units, vehicle controls, power distribution systems, fuel tank isolation valves, and commercial vehicle hybrid systems. The company was formerly known as Abeiron Limited. The company was founded in 1911 and is based in Dublin, Ireland.

Share Price

$422.71

52W: $311.92 - $478

DCF Fair Value

$119.45

-253.9% Premium

Thesis Hub

P/E (TTM)

43x

ROIC

12.5%

Operating Margin

16.6%

FCF Yield

1.9%

Debt / Equity

1.05x

Piotroski Score

8/9

Altman Z-Score

3.11

Market Cap

$164.1B

Price vs. Intrinsic Value Corridor

Overvalued vs DCF ($119.45)

Historical market price overlaid against conservative DCF Fair Value & Benjamin Graham Margin of Safety bands.

Period Return (1Y)

—()

Period Range

$— - $—

DCF Fair Value

$119.45

MOS Buy Target (-25%)

$89.59

Valuation Overlays: DCF Fair Value ($119.45) 25% MOS Buy Target ($89.59) Revised Graham ($189.04) Graham Number ($107.34)

2-Stage Discounted Cash Flow (DCF) Workbench

Conservative intrinsic value model based on owner cash generation over a 10-year investment horizon. Opens with LocalAlpha's baseline assumptions (matching the fair value shown above) — adjust any input to stress-test.

Current Market Price

$422.71

DCF Fair Value

$119.38

-254.1% Premium

Starting Free Cash Flow ($M)$3,106M

$100M$3,106M (Reported)$50,000M

Stage 1 Growth (Years 1-5)8.3%

-5%10% (Target)35%

Stage 2 Growth (Years 6-10)4.5%

0%5%20%

Discount Rate (WACC / Hurdle)9.0%

6%9% (Standard)15% (High Risk)

Terminal Perpetual Growth2.5%

1% (GDP Floor)2.5% (Inflation)4.0%

Net Debt ($M)$20,600M

-$100B CashBalance Sheet+$150B Debt

10-Yr PV of Cash Flows

$28.5B

PV of Terminal Value

$38.4B

Implied Enterprise Value

$66.9B

Implied Equity Value

$46.3B

Year	Yr 1	Yr 2	Yr 3	Yr 4	Yr 5	Yr 6	Yr 7	Yr 8	Yr 9	Yr 10
Projected FCF ($M)	$3,364	$3,643	$3,945	$4,273	$4,627	$4,836	$5,053	$5,281	$5,518	$5,767
Present Value (PV)	$3,086	$3,066	$3,047	$3,027	$3,008	$2,883	$2,764	$2,650	$2,541	$2,436

Benjamin Graham & Buffett Value Models

Classical deep value metrics based on asset backing, normalized earnings power, and owner cash yield.

Graham Number-293.8% Premium

$107.34

Calculated as √(22.5 × EPS × BVPS). The maximum theoretical price a defensive investor should pay based purely on asset book value and current earnings.

EPS: $9.82BVPS: $52.15

Revised Graham Formula-123.6% Premium

$189.04

Formula: V = (EPS × (8.5 + 2g) × 4.4) / Y where g is the conservative 7-10 yr growth rate and Y is AAA Bond Yield.

Growth Rate (g%)

Bond Yield (Y%)

Buffett Owner Earnings1.8% Yield

$7.60 / share

True distributable cash flow: Net Income + D&A - Maintenance CapEx. Reflects the cash Buffett would extract without hurting unit volume.

Total: $3.0BYield: 1.8%

Reverse DCF: Market Growth Expectation

HIGH BARRIER

18.5% CAGR (Next 10 Yrs)

At the current price of $422.71, the market is assuming the business will compound Free Cash Flow at 18.5% per year for the next decade with a 9% hurdle rate.

Value Investor Verdict

⚠ High expectations: Leaves minimal margin of safety for operational hiccups.

Autonomous Thesis Underwriting

Surveil ETN with Mathematical Margin of Safety Rules

Set non-negotiable floor rules for Eaton Corporation, PLC. If a newly filed quarterly 10-Q breaks your ROIC floor, operating margin boundary, or balance sheet leverage rules, receive an autonomous breach audit within 15 minutes.

Buffett Quality

ROIC > 15% • Margin > 15% • D/E < 0.5x

Margin Floor Guard

Current Margin 16.6% • Floor > 10%

Solvency Guard

Altman-Z > 2.6 • Current Ratio > 1.5x

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Frequently Asked Questions: Eaton Corporation, PLC (ETN) Intrinsic Valuation

Audited fundamentals, DCF intrinsic value sensitivity, and thesis break detection parameters for Eaton Corporation, PLC.

Based on institutional multi-stage Discounted Cash Flow (DCF) modeling on audited SEC cash flows, Eaton Corporation, PLC has an estimated DCF intrinsic fair value of $119.45 per share compared to its current market price of $422.71. This represents an estimated 253.9% premium over fair value. Additionally, its classic Benjamin Graham Number stands at $107.34.