Is Eaton Corp. Plc overvalued or undervalued?

As of 10 October 2025, the valuation grade for Eaton Corp. Plc moved from fair to expensive, indicating that the company is overvalued. The P/E ratio stands at 32, which is significantly higher than the industry average, while the EV to EBITDA ratio is 23.21, also above typical industry levels. Additionally, the PEG ratio is 1.66, suggesting that the stock may be priced too high relative to its growth prospects.
In comparison to peers, Eaton Corp. Plc's P/E ratio of 32.98 is higher than many in the electronics and appliances sector, indicating a premium valuation. Notably, the company's return over the past three years is 170.63%, which outperformed the S&P 500's 81.39% return, yet this strong performance does not justify the current high valuation metrics. Overall, Eaton Corp. Plc appears to be overvalued based on these ratios and comparisons.