Is Eaton Corp. Plc overvalued or undervalued?

As of 5 August 2025, the valuation grade for Eaton Corp. Plc has moved from expensive to fair, indicating a more favorable assessment of its market position. The company appears to be fairly valued based on its current metrics, with a P/E ratio of 32, an EV to EBITDA of 23.21, and a PEG ratio of 1.66. In comparison to its peers, Eaton's P/E ratio is slightly lower than the peer average of approximately 32.98, while its EV to EBITDA is also competitive against the industry benchmark of 23.99.
Eaton Corp. Plc has demonstrated strong returns, outperforming the S&P 500 in several periods, including a 3-year return of 168.51% compared to the S&P's 70.41%, reinforcing the notion that the stock is positioned well in the market. Overall, the combination of its valuation metrics and performance against benchmarks suggests that Eaton is fairly valued at this time.