Eaton Corp. plc, FCFE calculation

US$ in millions

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income attributable to Eaton ordinary shareholders	3,218)	2,462)	2,144)	1,410)	2,211)
Net income for noncontrolling interests	5)	4)	2)	5)	2)
Net noncash charges	550)	755)	326)	894)	1,174)
Changes in working capital	(149)	(688)	(309)	635)	64)
Net cash provided by operating activities	3,624)	2,533)	2,163)	2,944)	3,451)
Capital expenditures for property, plant and equipment	(757)	(598)	(575)	(389)	(587)
Proceeds from sales of property, plant and equipment	76)	163)	44)	12)	—)
Proceeds from borrowings	818)	1,995)	1,798)	—)	1,232)
Payments on borrowings	(19)	(2,012)	(1,013)	(249)	(348)
Short-term debt, net	(311)	317)	20)	(254)	(159)
Free cash flow to equity (FCFE)	3,431)	2,398)	2,437)	2,064)	3,589)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Download chart

Item	Description	The company
FCFE	Free cash flow to equity is the cash flow available to Eaton Corp. plc equity holders after all operating expenses, interest, and principal payments have been paid and necessary investments in working and fixed capital have been made.	Eaton Corp. plc FCFE decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.

Eaton Corp. plc, current P/FCFE calculation, comparison to benchmarks

No. shares of common stock outstanding	399,500,000
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)	3,431)
FCFE per share	8.59
Current share price (P)	326.51
Valuation Ratio
P/FCFE	38.02
Benchmarks
P/FCFE, Competitors¹
Boeing Co.	—
Caterpillar Inc.	15.64
Cummins Inc.	24.52
General Electric Co.	272.81
Honeywell International Inc.	25.61
Lockheed Martin Corp.	13.87
RTX Corp.	7.84
P/FCFE, Sector
Capital Goods	21.60
P/FCFE, Industry
Industrials	23.21

Based on: 10-K (reporting date: 2023-12-31).

¹ Click competitor name to see calculations.

If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.

Eaton Corp. plc, historical P/FCFE calculation, comparison to benchmarks

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
No. shares of common stock outstanding¹	399,500,000	398,000,000	398,800,000	398,100,000	413,400,000
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)²	3,431)	2,398)	2,437)	2,064)	3,589)
FCFE per share³	8.59	6.03	6.11	5.18	8.68
Share price^1, 4	289.00	172.78	149.31	132.68	96.58
Valuation Ratio
P/FCFE⁵	33.65	28.68	24.43	25.59	11.12
Benchmarks
P/FCFE, Competitors⁶
Boeing Co.	—	120.43	—	6.78	19.60
Caterpillar Inc.	14.39	24.03	16.36	25.22	11.07
Cummins Inc.	21.45	9.10	20.97	9.53	10.85
General Electric Co.	225.15	44.45	—	—	—
Honeywell International Inc.	26.10	27.59	46.23	12.59	21.75
Lockheed Martin Corp.	13.13	11.63	14.65	15.57	28.62
RTX Corp.	7.05	26.71	35.07	—	28.09
P/FCFE, Sector
Capital Goods	20.30	24.08	—	56.46	26.31
P/FCFE, Industry
Industrials	22.78	22.81	—	43.78	27.50

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

¹ Data adjusted for splits and stock dividends.

² See details »

³ 2023 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 3,431,000,000 ÷ 399,500,000 = 8.59

⁴ Closing price as at the filing date of Eaton Corp. plc Annual Report.

⁵ 2023 Calculation
P/FCFE = Share price ÷ FCFE per share
= 289.00 ÷ 8.59 = 33.65

⁶ Click competitor name to see calculations.

Download chart

Valuation ratio	Description	The company
P/FCFE	Price to free cash flow to equity is cash valuation indicator of stockholders’ equity.	Eaton Corp. plc P/FCFE ratio increased from 2021 to 2022 and from 2022 to 2023.

Eaton Corp. plc (NYSE:ETN)

Price to FCFE (P/FCFE)

Free Cash Flow to Equity (FCFE)

Price to FCFE Ratio, Current

Price to FCFE Ratio, Historical