Eaton Corp. plc, FCFF calculation

US$ in millions

12 months ended:	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income attributable to Eaton ordinary shareholders	3,794)	3,218)	2,462)	2,144)	1,410)
Net income for noncontrolling interests	4)	5)	4)	2)	5)
Net noncash charges	748)	550)	755)	326)	894)
Changes in working capital	(219)	(149)	(688)	(309)	635)
Net cash provided by operating activities	4,327)	3,624)	2,533)	2,163)	2,944)
Interest paid on debt, net of tax¹	274)	269)	212)	153)	175)
Capital expenditures for property, plant and equipment	(808)	(757)	(598)	(575)	(389)
Proceeds from sales of property, plant and equipment	85)	76)	163)	44)	12)
Lease assets obtained in exchange for new lease obligations, including leases acquired, finance leases	(13)	(38)	(10)	(14)	(16)
Free cash flow to the firm (FCFF)	3,865)	3,174)	2,300)	1,771)	2,726)

Based on: 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).

¹ See details »

Download chart

Item	Description	The company
FCFF	Free cash flow to the firm is the cash flow available to the Eaton Corp. plc suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made.	Eaton Corp. plc FCFF increased from 2022 to 2023 and from 2023 to 2024.

Eaton Corp. plc, interest paid, net of tax calculation

US$ in millions

12 months ended:	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Effective Income Tax Rate (EITR)
EITR¹	16.80%	15.80%	15.30%	25.90%	19.00%
Interest Paid, Net of Tax
Interest paid on debt, before tax	329)	319)	250)	207)	216)
Less: Interest paid on debt, tax²	55)	50)	38)	54)	41)
Interest paid on debt, net of tax	274)	269)	212)	153)	175)

Based on: 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).

¹ See details »

² 2024 Calculation
Interest paid on debt, tax = Interest paid on debt × EITR
= 329 × 16.80% = 55

Download chart

Eaton Corp. plc, current EV/FCFF calculation, comparison to benchmarks

Selected Financial Data (US$ in millions)
Enterprise value (EV)	121,065)
Free cash flow to the firm (FCFF)	3,865)
Valuation Ratio
EV/FCFF	31.33
Benchmarks
EV/FCFF, Competitors¹
Boeing Co.	—
Caterpillar Inc.	16.31
GE Aerospace	38.06
Honeywell International Inc.	27.84
Lockheed Martin Corp.	21.19
RTX Corp.	33.65
EV/FCFF, Sector
Capital Goods	45.72
EV/FCFF, Industry
Industrials	29.88

Based on: 10-K (reporting date: 2024-12-31).

¹ Click competitor name to see calculations.

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

Eaton Corp. plc, historical EV/FCFF calculation, comparison to benchmarks

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Selected Financial Data (US$ in millions)
Enterprise value (EV)¹	120,944)	122,149)	76,903)	67,594)	59,819)
Free cash flow to the firm (FCFF)²	3,865)	3,174)	2,300)	1,771)	2,726)
Valuation Ratio
EV/FCFF³	31.29	38.49	33.44	38.16	21.94
Benchmarks
EV/FCFF, Competitors⁴
Boeing Co.	—	25.63	37.53	—	—
Caterpillar Inc.	18.32	16.08	23.54	20.50	23.83
GE Aerospace	38.98	29.56	17.29	56.53	32.34
Honeywell International Inc.	27.10	29.13	29.82	25.22	26.49
Lockheed Martin Corp.	20.56	17.62	19.69	13.92	14.64
RTX Corp.	34.48	23.86	28.45	27.29	35.26
EV/FCFF, Sector
Capital Goods	46.45	23.34	25.87	32.16	74.97
EV/FCFF, Industry
Industrials	31.37	25.93	24.30	28.80	189.49

Based on: 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).

¹ See details »

² See details »

³ 2024 Calculation
EV/FCFF = EV ÷ FCFF
= 120,944 ÷ 3,865 = 31.29

⁴ Click competitor name to see calculations.

Download chart

Valuation ratio	Description	The company
EV/FCFF	Enterprise value to free cash flow to the firm is whole company valuation indicator.	Eaton Corp. plc EV/FCFF ratio increased from 2022 to 2023 but then decreased significantly from 2023 to 2024.

Eaton Corp. plc (NYSE:ETN)

Enterprise Value to FCFF (EV/FCFF)

Free Cash Flow to The Firm (FCFF)

Interest Paid, Net of Tax

Enterprise Value to FCFF Ratio, Current

Enterprise Value to FCFF Ratio, Historical