We publish no single base value for Eaton Corporation. Our valuation methods put it between $376.29 and $427.16 a share. The valuation code's reason: no point fair value: the two anchors behind it compound the same growth rate and differ only in how they end — a perpetuity at the terminal rate against a multiple on the final year — so the midpoint between them measures terminal treatment rather than what the business is worth. The published range is the same reading with the false precision removed: read it as the span the method supports, and treat neither edge as a point estimate.
| Method | Value | vs price | Basis |
|---|---|---|---|
| Discounted cash flow | $376.29 | +4.8% | free cash flow $3.79bn, growth 20.09% for 5 years, then fading to 3% over 5 more, discounted at 10.12%; stress floor $162.45 |
| Exit multiple (P/E) | $427.16 | +19.0% | earnings per share $13.78 valued at 28× (the stock's own median P/E) in 5 years, discounted back |
| Sum of the parts | — | — | no sum of the parts: this run holds no segment disclosure for the name |
| Price to sales | — | — | not reached: the cash-flow or earnings methods produced an anchor, so this fallback was not run |
| Tangible book | — | — | used only for lenders, where book value is the business |
| Price to FFO (REITs) | — | — | used only for REITs |
Each working is rebuilt by code from the valuation's own figures and checked against the published value.
The discount rate:
| Risk-free rate | 5.13% (10-year US Treasury yield) |
| Company's own beta | 1.14 (5 years of monthly returns against the S&P 500; standard error 0.19) |
| Peer beta | 1.51 (median of 5 S&P 500 Electrical Components & Equipment companies) |
| Blend of own and peers | 1.17 (92% own, 8% peers, weighted by how precisely the company's own beta is measured) |
| Adjusted beta | 1.11 (0.67 × 1.17 + 0.33, pulled toward the market's 1.0) |
| Equity risk premium | 4.5% |
| Discount rate = risk-free + adjusted beta × premium | 10.12% |
Free cash flow grows 20.09% a year for 5 years, then fades in equal steps toward 3% over 5 more; each year is discounted by 1 ÷ (1 + rate)^year:
| Year | Growth | Free cash flow | Discount factor | Present value |
|---|---|---|---|---|
| Now | — | $3.79bn | — | — |
| Year 1 | 20.09% | $4.56bn | 0.9081 | $4.14bn |
| Year 2 | 20.09% | $5.47bn | 0.8246 | $4.51bn |
| Year 3 | 20.09% | $6.57bn | 0.7488 | $4.92bn |
| Year 4 | 20.09% | $7.89bn | 0.6799 | $5.37bn |
| Year 5 | 20.09% | $9.48bn | 0.6174 | $5.85bn |
| Year 6 | 17.24% | $11.11bn | 0.5606 | $6.23bn |
| Year 7 | 14.39% | $12.71bn | 0.5091 | $6.47bn |
| Year 8 | 11.54% | $14.18bn | 0.4623 | $6.55bn |
| Year 9 | 8.70% | $15.41bn | 0.4198 | $6.47bn |
| Year 10 | 5.85% | $16.31bn | 0.3812 | $6.22bn |
| Terminal value = year-10 cash flow × (1 + 3%) ÷ (10.12% − 3%) | $235.79bn |
| Terminal value in today's money | $89.88bn |
| Present value of years 1–10 | $56.72bn |
| Total present value | $146.60bn |
| Shares outstanding | 389.60m |
| Value per share = total ÷ shares | $376.29 |
How the DCF value moves with the discount rate and the starting growth (the middle cell is the published value):
| Discount rate | Growth 15.09% | Growth 20.09% | Growth 25.09% |
|---|---|---|---|
| 9.12% | $335.55 | $447.67 | $593.79 |
| 10.12% | $283.59 | $376.29 | $496.77 |
| 11.12% | $244.65 | $322.90 | $424.33 |
The same DCF at each beta, starting growth unchanged:
| Beta | Value | Discount rate | DCF value |
|---|---|---|---|
| Company's own beta | 1.14 | 10.26% | $368.20 |
| Peer beta | 1.51 | 11.93% | $289.07 |
| Adjusted beta (used) | 1.11 | 10.12% | $376.29 |
Earnings per share grow on the same fading path as the DCF:
| Year | Growth | Earnings per share |
|---|---|---|
| Now | — | $13.78 |
| Year 1 | 20.09% | $16.55 |
| Year 2 | 14.96% | $19.03 |
| Year 3 | 11.37% | $21.19 |
| Year 4 | 8.86% | $23.07 |
| Year 5 | 7.10% | $24.71 |
| Earnings per share in year 5 | $24.71 |
| Exit P/E (the stock's own median P/E) | 28× |
| Value in 5 years = earnings × P/E | $691.86 |
| Discounted at 10.12% over 5 years: ÷ 1.6197 | $427.16 |
We publish no single base value for Eaton Corporation. Our valuation methods put it between $376.29 and $427.16 a share. The valuation code's reason: no point fair value: the two anchors behind it compound the same growth rate and differ only in how they end — a perpetuity at the terminal rate against a multiple on the final year — so the midpoint between them measures terminal treatment rather than what the business is worth. The published range is the same reading with the false precision removed: read it as the span the method supports, and treat neither edge as a point estimate.
One-year price simulation: a 10% chance the price is below $181.36 and a 10% chance it is above $668.00 in a year; a 48% chance it is higher than today's $359.04, from 50.61% volatility. The simulation assumes the price drifts up at our discount rate of 10.12% a year.
At $359.04 the price implies free cash flow growing 19.2% a year for five years and then fading toward 3% over five more; its revenue has grown 20.1%.
| Week | Price | Base value |
|---|---|---|
| 2 Oct 2026 | $436.11 | $304.17 |
| 9 Oct 2026 | $429.65 | $306.86 |
| 16 Oct 2026 | $391.25 | — |
| 23 Oct 2026 | $366.11 | — |
| 30 Oct 2026 | $369.97 | — |
| 6 Nov 2026 | $341.72 | — |
| 12 Nov 2026 | $359.04 | — |
Data as of 12 Nov 2026; financials to 30 Sep 2026. Sources: company filings via EODHD, SEC EDGAR, US Treasury. How these values are computed. Not investment advice.
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