Stock Analysis on Net

Eaton Corp. plc (NYSE:ETN)

$24.99

Price to Sales (P/S)
since 2005

Microsoft Excel

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Calculation

Eaton Corp. plc, P/S, long-term trends, calculation

Microsoft Excel

Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 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), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).

1 US$

2 Data adjusted for splits and stock dividends.

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


The price-to-sales (P/S) ratio for the period examined exhibits considerable fluctuation. Initially, the ratio remained relatively stable, fluctuating between 0.91 and 1.33 from 2006 to 2011. A significant shift occurred following 2011, with the ratio demonstrating an overall upward trend, punctuated by periods of volatility.

Initial Stability (2006-2011)
From 2006 to 2011, the P/S ratio demonstrated a narrow range, oscillating between 0.91 and 1.33. This suggests a consistent valuation relative to sales during this period. A notable peak of 1.33 was observed in 2011, representing the highest value within this timeframe.
Post-2011 Upward Trend & Volatility
Beginning in 2012, the P/S ratio began a more pronounced upward trajectory. The ratio increased from 1.08 in 2012 to 3.31 in 2023. However, this increase was not linear, with several instances of decline. For example, the ratio decreased from 1.74 in 2018 to 1.58 in 2019. The most substantial increase occurred between 2020 and 2024, rising from 2.96 to 4.98, before decreasing to 4.58 in 2025.
Recent Performance (2023-2026)
The most recent years show continued, though moderating, volatility. The P/S ratio peaked at 4.98 in 2024, then decreased to 4.58 in 2025, and increased again to 5.29 in 2026. This suggests a potential stabilization at a higher valuation level compared to the earlier period examined, but further observation is needed to confirm this trend.
Relationship to Share Price and Sales per Share
The fluctuations in the P/S ratio appear to correlate with changes in both share price and sales per share. The period of relative stability in the P/S ratio (2006-2011) coincides with moderate growth in both metrics. The subsequent increase in the P/S ratio is largely driven by a more substantial increase in share price, particularly after 2020, while sales per share also increased, but at a slower rate. This indicates that investor expectations regarding future growth and profitability have increased, leading to a higher valuation relative to current sales.

In summary, the P/S ratio has evolved from a period of stability to one characterized by an upward trend and increasing volatility. The recent performance suggests a potentially higher valuation level, driven primarily by increases in share price, though continued monitoring is warranted to assess the sustainability of this trend.


Comparison to Competitors

Eaton Corp. plc, P/S, long-term trends, comparison to competitors

Microsoft Excel

Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 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), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).


Comparison to Sector (Capital Goods)


Comparison to Industry (Industrials)