Common Stock Valuation Ratios (Price Multiples)
Valuation ratios measure the quantity of an asset or flaw (e.g., earnings) associated with ownership of a specified claim (e.g., a share of ownership of the enterprise).
Current Valuation Ratios
Eaton Corp. plc, current price multiples
| Eaton Corp. plc | Boeing Co. | Caterpillar Inc. | GE Aerospace | Honeywell International Inc. | Lockheed Martin Corp. | RTX Corp. | Capital Goods | Industrials | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||
| Current share price (P) | $374.10 | |||||||||||
| No. shares of common stock outstanding | 387,900,000 | |||||||||||
| Growth rate (g) | 9.16% | |||||||||||
| Earnings per share (EPS) | $10.54 | |||||||||||
| Next year expected EPS | $11.50 | |||||||||||
| Operating profit per share | $13.43 | |||||||||||
| Sales per share | $70.76 | |||||||||||
| Book value per share (BVPS) | $50.08 | |||||||||||
| Valuation Ratios (Price Multiples) | ||||||||||||
| Price to earnings (P/E) | 35.51 | 81.62 | 37.53 | 35.02 | 29.78 | 27.98 | 38.68 | 36.94 | 28.04 | |||
| Price to next year expected earnings | 32.53 | 15,928.58 | 28.41 | 34.42 | 26.07 | 20.45 | 37.90 | 35.04 | 25.52 | |||
| Price-earnings-growth (PEG) | 3.88 | — | 1.17 | 20.12 | 2.09 | 0.76 | 18.76 | 6.82 | 2.83 | |||
| Price to operating profit (P/OP) | 27.86 | 36.03 | 29.90 | 27.67 | 25.27 | 18.16 | 28.00 | 27.26 | 22.52 | |||
| Price to sales (P/S) | 5.29 | 1.72 | 5.21 | 7.20 | 3.76 | 1.87 | 2.94 | 3.49 | 2.67 | |||
| Price to book value (P/BV) | 7.47 | 28.28 | 15.64 | 16.32 | 10.13 | 20.89 | 3.99 | 9.81 | 7.70 | |||
Based on: 10-K (reporting date: 2025-12-31).
If the company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.
Otherwise, if the company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.
Historical Valuation Ratios (Summary)
Eaton Corp. plc, historical price multiples
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).
The valuation ratios demonstrate a generally increasing trend from 2021 to 2025, with some fluctuation observed in 2024. This suggests a shifting perception of the company’s value by the market over the period. The increases indicate investors were willing to pay more for each dollar of earnings, operating profit, sales, and book value as time progressed.
- Price to Earnings (P/E)
- The Price to Earnings ratio increased from 27.77 in 2021 to 35.55 in 2025. A notable increase occurred between 2022 and 2023, rising from 27.93 to 35.88. The ratio experienced a slight decrease in 2024 to 30.00 before resuming its upward trajectory. This suggests growing investor confidence in the company’s profitability, though the 2024 dip warrants further investigation.
- Price to Operating Profit (P/OP)
- The Price to Operating Profit ratio exhibited a similar pattern to the P/E ratio, increasing from 19.33 in 2021 to 27.89 in 2025. The largest increase was observed between 2021 and 2023, moving from 19.33 to 29.72. A decrease to 24.57 in 2024 was followed by a recovery in 2025. This indicates that the market increasingly valued the company’s operational efficiency, with a temporary adjustment in 2024.
- Price to Sales (P/S)
- The Price to Sales ratio showed a consistent upward trend throughout the period, rising from 3.03 in 2021 to 5.29 in 2025. The increase from 2022 to 2023 was particularly significant, moving from 3.31 to 4.98. This suggests investors placed a higher premium on the company’s revenue generation capabilities over time.
- Price to Book Value (P/BV)
- The Price to Book Value ratio demonstrated the most substantial increase among the observed ratios, growing from 3.63 in 2021 to 7.48 in 2025. The increase from 2022 to 2023 was considerable, rising from 4.04 to 6.07, and continued steadily through 2025. This indicates a significant shift in market perception regarding the company’s net asset value and its ability to generate returns on those assets.
Overall, the observed trends suggest increasing market optimism regarding the company’s financial performance and asset valuation. The slight decrease in P/E and P/OP in 2024 could be attributed to short-term market conditions or company-specific factors requiring further scrutiny.
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Price to Earnings (P/E)
Eaton Corp. plc, historical P/E 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 | 387,900,000 | 392,000,000 | 399,500,000 | 398,000,000 | 398,800,000 | |
| Selected Financial Data (US$) | ||||||
| Net income attributable to Eaton ordinary shareholders (in millions) | 4,087) | 3,794) | 3,218) | 2,462) | 2,144) | |
| Earnings per share (EPS)2 | 10.54 | 9.68 | 8.06 | 6.19 | 5.38 | |
| Share price1, 3 | 374.59 | 290.38 | 289.00 | 172.78 | 149.31 | |
| Valuation Ratio | ||||||
| P/E ratio4 | 35.55 | 30.00 | 35.88 | 27.93 | 27.77 | |
| Benchmarks | ||||||
| P/E Ratio, Competitors5 | ||||||
| Boeing Co. | 97.12 | — | — | — | — | |
| Caterpillar Inc. | 40.55 | 15.65 | 15.55 | 19.15 | 16.82 | |
| GE Aerospace | 36.01 | 33.42 | 16.18 | — | — | |
| Honeywell International Inc. | 32.62 | 23.10 | 22.73 | 26.97 | 23.14 | |
| Lockheed Martin Corp. | 28.55 | 20.18 | 15.35 | 20.48 | 16.70 | |
| RTX Corp. | 39.61 | 36.25 | 38.31 | 27.59 | 36.79 | |
| P/E Ratio, Sector | ||||||
| Capital Goods | 39.12 | 41.71 | 25.10 | 40.21 | 57.31 | |
| P/E Ratio, Industry | ||||||
| Industrials | 29.14 | 28.42 | 24.85 | 36.06 | 35.59 | |
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.
2 2025 Calculation
EPS = Net income attributable to Eaton ordinary shareholders ÷ No. shares of common stock outstanding
= 4,087,000,000 ÷ 387,900,000 = 10.54
3 Closing price as at the filing date of Eaton Corp. plc Annual Report.
4 2025 Calculation
P/E ratio = Share price ÷ EPS
= 374.59 ÷ 10.54 = 35.55
5 Click competitor name to see calculations.
The price to earnings (P/E) ratio exhibited a generally increasing trend over the five-year period, though with some fluctuation. The share price and earnings per share (EPS) both demonstrated consistent growth throughout the observed timeframe, contributing to the observed P/E ratio movements.
- Share Price
- The share price increased steadily from US$149.31 in 2021 to US$374.59 in 2025. The most significant increase occurred between 2022 and 2023, rising from US$172.78 to US$289.00. Growth moderated in subsequent years, but remained positive.
- Earnings Per Share (EPS)
- EPS also showed consistent growth, increasing from US$5.38 in 2021 to US$10.54 in 2025. The rate of increase in EPS was relatively stable year-over-year, though slightly higher between 2023 and 2024.
- Price to Earnings (P/E) Ratio
- The P/E ratio began at 27.77 in 2021 and rose to 35.88 in 2023. A slight decrease was observed in 2024, with the ratio falling to 30.00, before increasing again to 35.55 in 2025. The fluctuations in the P/E ratio suggest that investor sentiment and expectations regarding future earnings growth may have varied. While both share price and EPS increased, the P/E ratio did not consistently rise, indicating that the market’s valuation of each dollar of earnings changed over the period.
Overall, the increasing share price and EPS suggest positive company performance. The P/E ratio’s movement indicates a dynamic valuation, potentially influenced by broader market conditions or specific company-related news impacting investor confidence.
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Price to Operating Profit (P/OP)
Eaton Corp. plc, historical P/OP calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 387,900,000 | 392,000,000 | 399,500,000 | 398,000,000 | 398,800,000 | |
| Selected Financial Data (US$) | ||||||
| Operating income (in millions) | 5,209) | 4,632) | 3,885) | 3,019) | 3,080) | |
| Operating profit per share2 | 13.43 | 11.82 | 9.72 | 7.59 | 7.72 | |
| Share price1, 3 | 374.59 | 290.38 | 289.00 | 172.78 | 149.31 | |
| Valuation Ratio | ||||||
| P/OP ratio4 | 27.89 | 24.57 | 29.72 | 22.78 | 19.33 | |
| Benchmarks | ||||||
| P/OP Ratio, Competitors5 | ||||||
| Boeing Co. | 42.88 | — | — | — | — | |
| Caterpillar Inc. | 32.30 | 12.92 | 12.40 | 16.25 | 15.87 | |
| GE Aerospace | 28.45 | 26.78 | 27.11 | 19.88 | 17.46 | |
| Honeywell International Inc. | 27.68 | 17.71 | 18.15 | 20.84 | 20.68 | |
| Lockheed Martin Corp. | 18.53 | 15.35 | 12.49 | 14.06 | 11.56 | |
| RTX Corp. | 28.67 | 26.47 | 34.37 | 26.48 | 28.68 | |
| P/OP Ratio, Sector | ||||||
| Capital Goods | 28.87 | 28.93 | 22.37 | 25.20 | 22.96 | |
| P/OP Ratio, Industry | ||||||
| Industrials | 23.41 | 23.03 | 20.78 | 19.86 | 22.38 | |
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.
2 2025 Calculation
Operating profit per share = Operating income ÷ No. shares of common stock outstanding
= 5,209,000,000 ÷ 387,900,000 = 13.43
3 Closing price as at the filing date of Eaton Corp. plc Annual Report.
4 2025 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 374.59 ÷ 13.43 = 27.89
5 Click competitor name to see calculations.
The price to operating profit (P/OP) ratio exhibited a generally increasing trend over the five-year period, though with some fluctuation. The share price demonstrated consistent growth, while operating profit per share also increased, influencing the observed P/OP ratio behavior.
- Overall Trend
- The P/OP ratio increased from 19.33 in 2021 to 27.89 in 2025. This indicates that the market valuation relative to operating profit has risen over time. However, the increase was not linear, with a notable dip in 2024.
- Year-over-Year Changes
- From 2021 to 2022, the P/OP ratio increased from 19.33 to 22.78, representing an approximately 17.8% rise. A more substantial increase occurred between 2022 and 2023, with the ratio climbing to 29.72, a roughly 30.7% change. In 2024, the P/OP ratio decreased to 24.57, a decline of approximately 17.3%. Finally, from 2024 to 2025, the ratio increased again, reaching 27.89, a 13.5% increase.
- Relationship to Underlying Metrics
- The share price increased consistently throughout the period, rising from US$149.31 in 2021 to US$374.59 in 2025. Operating profit per share also showed growth, moving from US$7.72 in 2021 to US$13.43 in 2025. The P/OP ratio’s fluctuations appear to be influenced by the relative rates of change in these two components. The decrease in 2024 suggests that the share price did not increase at the same rate as operating profit per share during that year.
The observed fluctuations in the P/OP ratio warrant further investigation to understand the underlying market sentiment and investor expectations driving these changes. The increasing trend overall suggests a growing willingness of investors to pay a higher premium for each dollar of operating profit generated.
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Price to Sales (P/S)
Eaton Corp. plc, historical P/S calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 387,900,000 | 392,000,000 | 399,500,000 | 398,000,000 | 398,800,000 | |
| Selected Financial Data (US$) | ||||||
| Net sales (in millions) | 27,448) | 24,878) | 23,196) | 20,752) | 19,628) | |
| Sales per share2 | 70.76 | 63.46 | 58.06 | 52.14 | 49.22 | |
| Share price1, 3 | 374.59 | 290.38 | 289.00 | 172.78 | 149.31 | |
| Valuation Ratio | ||||||
| P/S ratio4 | 5.29 | 4.58 | 4.98 | 3.31 | 3.03 | |
| Benchmarks | ||||||
| P/S Ratio, Competitors5 | ||||||
| Boeing Co. | 2.05 | 1.98 | 1.66 | 1.90 | 1.87 | |
| Caterpillar Inc. | 5.63 | 2.75 | 2.52 | 2.27 | 2.26 | |
| GE Aerospace | 7.41 | 6.24 | 2.30 | 1.20 | 1.50 | |
| Honeywell International Inc. | 4.12 | 3.42 | 3.51 | 3.78 | 3.73 | |
| Lockheed Martin Corp. | 1.91 | 1.52 | 1.57 | 1.78 | 1.57 | |
| RTX Corp. | 3.01 | 2.14 | 1.78 | 2.14 | 2.21 | |
| P/S Ratio, Sector | ||||||
| Capital Goods | 3.69 | 2.77 | 2.26 | 2.09 | 2.09 | |
| P/S Ratio, Industry | ||||||
| Industrials | 2.78 | 2.29 | 2.06 | 1.80 | 2.07 | |
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.
2 2025 Calculation
Sales per share = Net sales ÷ No. shares of common stock outstanding
= 27,448,000,000 ÷ 387,900,000 = 70.76
3 Closing price as at the filing date of Eaton Corp. plc Annual Report.
4 2025 Calculation
P/S ratio = Share price ÷ Sales per share
= 374.59 ÷ 70.76 = 5.29
5 Click competitor name to see calculations.
The price-to-sales ratio exhibited an overall increasing trend between December 31, 2021, and December 31, 2025. However, this trend was not consistently upward, with a notable fluctuation observed in the period.
- Price-to-Sales Ratio Trend
- The price-to-sales ratio began at 3.03 in 2021 and increased to 3.31 in 2022, indicating a modest rise in valuation relative to sales. A more substantial increase followed, with the ratio reaching 4.98 in 2023. This suggests a significant shift in investor sentiment or expectations regarding future revenue generation. A slight decrease was then recorded in 2024, with the ratio falling to 4.58. The ratio then increased again in 2025, reaching 5.29, representing the highest value within the observed period.
- Share Price and Sales per Share Relationship
- The share price demonstrated consistent growth throughout the period, increasing from US$149.31 in 2021 to US$374.59 in 2025. Sales per share also increased steadily, moving from US$49.22 in 2021 to US$70.76 in 2025. The price-to-sales ratio’s fluctuations suggest that the share price growth outpaced sales per share growth at times, and vice versa, leading to the observed changes in the ratio.
The increase in the price-to-sales ratio, particularly the jump in 2023, warrants further investigation to determine the underlying drivers. Potential factors could include changes in profitability, growth expectations, or broader market conditions. The slight dip in the ratio in 2024, followed by a rebound in 2025, suggests a dynamic valuation influenced by ongoing performance and market perceptions.
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Price to Book Value (P/BV)
Eaton Corp. plc, historical P/BV calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 387,900,000 | 392,000,000 | 399,500,000 | 398,000,000 | 398,800,000 | |
| Selected Financial Data (US$) | ||||||
| Total Eaton shareholders’ equity (in millions) | 19,425) | 18,488) | 19,036) | 17,038) | 16,413) | |
| Book value per share (BVPS)2 | 50.08 | 47.16 | 47.65 | 42.81 | 41.16 | |
| Share price1, 3 | 374.59 | 290.38 | 289.00 | 172.78 | 149.31 | |
| Valuation Ratio | ||||||
| P/BV ratio4 | 7.48 | 6.16 | 6.07 | 4.04 | 3.63 | |
| Benchmarks | ||||||
| P/BV Ratio, Competitors5 | ||||||
| Boeing Co. | 33.65 | — | — | — | — | |
| Caterpillar Inc. | 16.90 | 8.66 | 8.25 | 8.09 | 6.62 | |
| GE Aerospace | 16.78 | 11.33 | 5.43 | 2.43 | 2.64 | |
| Honeywell International Inc. | 11.09 | 7.08 | 8.11 | 8.02 | 6.91 | |
| Lockheed Martin Corp. | 21.31 | 17.00 | 15.54 | 12.67 | 9.62 | |
| RTX Corp. | 4.09 | 2.88 | 2.05 | 1.97 | 1.95 | |
| P/BV Ratio, Sector | ||||||
| Capital Goods | 10.39 | 7.55 | 6.94 | 5.31 | 4.77 | |
| P/BV Ratio, Industry | ||||||
| Industrials | 8.00 | 6.68 | 6.85 | 5.50 | 5.44 | |
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.
2 2025 Calculation
BVPS = Total Eaton shareholders’ equity ÷ No. shares of common stock outstanding
= 19,425,000,000 ÷ 387,900,000 = 50.08
3 Closing price as at the filing date of Eaton Corp. plc Annual Report.
4 2025 Calculation
P/BV ratio = Share price ÷ BVPS
= 374.59 ÷ 50.08 = 7.48
5 Click competitor name to see calculations.
The price to book value (P/BV) ratio for the period demonstrates a consistent upward trend. This indicates that the market valuation of the company’s equity relative to its book value has increased over the five-year period examined.
- Share Price
- The share price exhibited growth throughout the period, increasing from US$149.31 in 2021 to US$374.59 in 2025. The most substantial increase occurred between 2022 and 2023, with a more moderate rise observed in subsequent years.
- Book Value Per Share
- Book value per share also increased, though at a slower pace than the share price. It rose from US$41.16 in 2021 to US$50.08 in 2025, indicating a steady accumulation of equity. The rate of increase in book value per share was relatively consistent year-over-year.
- Price to Book Value Ratio
- The P/BV ratio began at 3.63 in 2021 and increased to 7.48 in 2025. The largest single-year increase in the P/BV ratio occurred between 2022 and 2023, mirroring the significant share price appreciation during that time. The increase from 2023 to 2024 was minimal, and the ratio continued to climb in 2025. This suggests growing investor confidence in the company’s ability to generate future earnings relative to its net asset value.
The divergence between the growth rates of the share price and book value per share is the primary driver of the increasing P/BV ratio. This suggests that market expectations regarding the company’s future profitability and growth prospects have risen at a faster rate than the growth of its underlying net asset base.
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