Eaton Corporation plc EV/EBITDA
Data as of June 01, 2026
EV/EBITDA
27.85
Enterprise Value
$176.68B
EBITDA (TTM)
$6.34B
Sector
Industrials
How It's Calculated
27.85 = $176.68B ÷ $6.34B
What This Means
Eaton Corporation plc's EV/EBITDA of 27.9 is elevated, which can reflect growth expectations, scarce assets, or cyclical EBITDA.
About Eaton Corporation plc
Eaton Corporation plc (ETN) operates in the Industrials sector, specifically in Specialty Industrial Machinery. With a market capitalization of about $155.55B, it ranks as a large-cap stock โ a major established company.
Shares recently traded near $400.60, within a 52-week range of $311.90 to $435.43 (-8.0% from the high, +28.4% from the low). Beta of 1.24 suggests the stock has been more volatile than the broader market.
Trailing profit margin is about 14.0%, signaling a solid profit margin for its industry.
Understanding This Metric
EV/EBITDA is widely used when comparing companies with different debt loads because enterprise value includes net debt while EBITDA approximates operating cash earnings power. For Eaton Corporation plc, the ratio should be read with growth, capex needs, and cycle position in Industrials. Pair EV/EBITDA with free cash flow yield and net debt metrics before drawing conclusions โ especially when EBITDA is depressed or boosted by one-time items.
Using This Number in Practice
Near 27.85x EV/EBITDA, Eaton Corporation plc (ETN) carries an elevated EV/EBITDA multiple that may embed growth expectations or scarcity within its peer set. Enterprise value of about $176.68B and EBITDA near $6.34B form the ratio โ adjust for one-time items before treating the headline multiple as comparable.
Credit and LBO workflows often sort names on EV/EBITDA before drilling into free cash flow and maintenance capex. Pair this view with the EV/EBITDA calculator and the ETN metrics hub for related valuation pages.
Sector Comparison
Among Industrials names on our S&P 100 coverage, Eaton Corporation plc's EV/EBITDA of 27.85 can be compared with peers such as CAT (30.45), GE (31.60), RTX (18.07). Sector context helps interpretation, but each company's growth profile and balance sheet differ โ use multiple metrics before drawing conclusions. View all Industrials stocks.
Key Takeaways
- ETN is grouped in the Industrials sector for peer comparisons.
- Recent beta of 1.24 suggests higher-than-market price sensitivity.
- Trailing profit margin of 14.0% provides context for how much earnings support the headline multiple.
Related Tools & Guides
Explore calculators and guides connected to this metric, or view all metrics for ETN.
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Frequently Asked Questions
What is ETN's EV/EBITDA?
EV/EBITDA compares enterprise value to operating earnings before interest, taxes, depreciation, and amortization. Eaton Corporation plc's ratio is about 27.85 โ common for comparing leveraged companies in Industrials.
Is 27.85 high or low vs peers?
Among Industrials peers (e.g. GE (31.60), CAT (30.45), DE (21.59)), ETN's 27.85 should be read with growth, capex, and debt levels.
When is EV/EBITDA misleading?
EBITDA ignores capex, working capital, and stock-based comp; negative or tiny EBITDA makes the ratio meaningless. Cross-check with free cash flow and net debt.
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