Price to FCFE (P/FCFE)
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Eaton Corp. plc pages available for free this week:
- Statement of Comprehensive Income
- Balance Sheet: Assets
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Geographic Areas
- Common Stock Valuation Ratios
- Enterprise Value to EBITDA (EV/EBITDA)
- Enterprise Value to FCFF (EV/FCFF)
- Net Profit Margin since 2005
- Return on Equity (ROE) since 2005
- Total Asset Turnover since 2005
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Free Cash Flow to Equity (FCFE)
Eaton Corp. plc, FCFE calculation
US$ in millions
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).
Net cash provided by operating activities and free cash flow to equity (FCFE) both demonstrate positive trends over the five-year period. Operating cash flow exhibits consistent growth, while FCFE shows a more nuanced pattern of fluctuation followed by an upward trajectory.
- Net Cash from Operations
- Net cash provided by operating activities increased steadily from US$2,163 million in 2021 to US$4,472 million in 2025. This represents a substantial overall increase, indicating improved operational efficiency and/or increased profitability over the period. The growth rate appears to accelerate from 2022 to 2023, and then moderates slightly in the subsequent years, though remaining positive.
- Free Cash Flow to Equity (FCFE)
- FCFE experienced a slight decrease from US$2,437 million in 2021 to US$2,398 million in 2022. However, it then increased significantly to US$3,431 million in 2023, continuing to rise to US$3,665 million in 2024 and US$3,975 million in 2025. This suggests that after the initial dip, the company’s ability to generate cash flow available to equity holders improved considerably. The increase in FCFE generally parallels the increase in operating cash flow, indicating a strong correlation between operational performance and cash available to equity.
The consistent growth in operating cash flow, coupled with the recovery and subsequent increase in FCFE, suggests a strengthening financial position. The company appears to be effectively converting operational profits into cash available for distribution to equity holders, debt repayment, or reinvestment in the business.
Price to FCFE Ratio, Current
Eaton Corp. plc, current P/FCFE calculation, comparison to benchmarks
| No. shares of common stock outstanding | |
| Selected Financial Data (US$) | |
| Free cash flow to equity (FCFE) (in millions) | |
| FCFE per share | |
| Current share price (P) | |
| Valuation Ratio | |
| P/FCFE | |
| Benchmarks | |
| P/FCFE, Competitors1 | |
| Boeing Co. | |
| Caterpillar Inc. | |
| GE Aerospace | |
| Honeywell International Inc. | |
| Lockheed Martin Corp. | |
| RTX Corp. | |
| P/FCFE, Sector | |
| Capital Goods | |
| P/FCFE, Industry | |
| Industrials | |
Based on: 10-K (reporting date: 2025-12-31).
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.
Price to FCFE Ratio, Historical
Eaton Corp. plc, historical P/FCFE calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Free cash flow to equity (FCFE) (in millions)2 | ||||||
| FCFE per share3 | ||||||
| Share price1, 4 | ||||||
| Valuation Ratio | ||||||
| P/FCFE5 | ||||||
| Benchmarks | ||||||
| P/FCFE, Competitors6 | ||||||
| Boeing Co. | ||||||
| Caterpillar Inc. | ||||||
| GE Aerospace | ||||||
| Honeywell International Inc. | ||||||
| Lockheed Martin Corp. | ||||||
| RTX Corp. | ||||||
| P/FCFE, Sector | ||||||
| Capital Goods | ||||||
| P/FCFE, Industry | ||||||
| Industrials | ||||||
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).
1 Data adjusted for splits and stock dividends.
3 2025 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= ÷ =
4 Closing price as at the filing date of Eaton Corp. plc Annual Report.
5 2025 Calculation
P/FCFE = Share price ÷ FCFE per share
= ÷ =
6 Click competitor name to see calculations.
The Price to Free Cash Flow to Equity (P/FCFE) ratio exhibits an overall increasing trend between 2021 and 2025, though with some fluctuation. This suggests a changing investor valuation of the company’s free cash flow available to equity holders over the period.
- Share Price
- The share price demonstrates a consistent upward trajectory. Beginning at 149.31 in 2021, it increased to 172.78 in 2022, experienced a substantial rise to 289.00 in 2023, and continued to grow, reaching 290.38 in 2024 and 374.59 in 2025. This indicates increasing market confidence or positive performance perception.
- FCFE per Share
- Free Cash Flow to Equity per share also shows an increasing trend, though less dramatic than the share price. It began at 6.11 in 2021, decreased slightly to 6.03 in 2022, and then rose steadily to 8.59 in 2023, 9.35 in 2024, and 10.25 in 2025. This suggests improving cash generation for equity holders.
- P/FCFE Ratio
- The P/FCFE ratio increased from 24.43 in 2021 to 28.68 in 2022, indicating investors were willing to pay more for each dollar of FCFE. A further increase to 33.65 in 2023 continued this trend. The ratio experienced a slight decrease to 31.06 in 2024, potentially due to a temporary market correction or reassessment. However, it resumed its upward trend, reaching 36.55 in 2025. This final value represents the highest P/FCFE ratio within the observed period, suggesting a premium valuation based on future FCFE expectations.
The consistent growth in both share price and FCFE per share contributes to the overall increase in the P/FCFE ratio. The slight dip in the ratio in 2024 does not appear to disrupt the long-term trend, and the subsequent increase in 2025 reinforces the notion of increasing investor confidence in the company’s ability to generate cash flow for equity holders.