Is Eaton Corp. Plc overvalued or undervalued?

As of 17 October 2025, the valuation grade for Eaton Corp. Plc moved from expensive to fair, indicating a more favorable assessment of its market position. The company appears fairly valued based on its current metrics, with a P/E ratio of 32, a Price to Book Value of 7.01, and an EV to EBITDA of 23.21. In comparison, a peer company shows a P/E of 32.98, suggesting that Eaton is slightly more attractive relative to its peer.
Eaton's return performance has been strong, particularly over the last three years, where it achieved a return of 170.08%, significantly outperforming the S&P 500's 81.19% over the same period. This performance, coupled with a robust ROE of 22.10%, supports the notion that the stock is fairly valued in the current market context.