Is Eaton Corp. Plc overvalued or undervalued?

As of 17 October 2025, the valuation grade for Eaton Corp. Plc moved from expensive to fair. The company appears to be fairly valued based on its current metrics. Key ratios include a P/E ratio of 32, an EV to EBITDA of 23.21, and a PEG ratio of 1.66, which suggest that while the company is priced at a premium, it may be justified given its growth prospects.
In comparison to its peers, Eaton Corp. Plc has a P/E ratio of 32.98, indicating it is slightly more expensive than its peer group. Notably, the company's return on equity (ROE) stands at 22.10%, which is a strong indicator of profitability relative to its equity base. Over the past five years, Eaton Corp. Plc has delivered a remarkable return of 241.66%, significantly outperforming the S&P 500's return of 91.29% in the same period, reinforcing the notion that the stock is fairly valued given its historical performance.