Is Eaton Corp. Plc overvalued or undervalued?

As of 17 October 2025, Eaton Corp. Plc's valuation grade changed from expensive to fair, indicating a shift in its perceived value. 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 ratio of 23.21. In comparison, a peer, which has a P/E ratio of 32.98, suggests that Eaton is slightly more attractive in terms of valuation.
Eaton's PEG ratio stands at 1.66, indicating potential growth relative to its price, while its ROE of 22.10% reflects strong profitability. The recent stock performance shows that Eaton has returned 12.48% year-to-date, slightly trailing the S&P 500's 13.30%, but it has significantly outperformed the index over the past three and five years, with returns of 170.08% and 241.66%, respectively. This long-term performance reinforces the notion that Eaton is fairly valued given its growth potential and profitability metrics.