Is Eaton Corp. Plc overvalued or undervalued?

As of 7 November 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, 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, its peer, which has a P/E of approximately 32.98 and an EV to EBITDA of 23.99, indicates that Eaton is aligned with industry standards.
Eaton's return performance shows a mixed picture; while it has underperformed the S&P 500 over the past year with a return of 3.66% compared to the index's 12.65%, it has significantly outperformed over the longer term, with a 5-year return of 239.91% against the S&P 500's 91.73%. This suggests that while the stock may be fairly valued currently, its historical performance indicates strong potential for long-term investors.