Is Eaton Corp. Plc overvalued or undervalued?

As of 7 November 2025, the valuation grade for Eaton Corp. Plc moved from expensive to fair, indicating a shift in perception regarding its market 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, its peer, which has a P/E ratio of approximately 32.98, suggests that Eaton is in line with industry valuations.
Eaton's strong performance is further highlighted by its impressive ROE of 22.10% and a PEG ratio of 1.66, indicating reasonable growth expectations relative to its earnings. While the stock has slightly underperformed the S&P 500 over the past week and month, it has outperformed the index over the longer term, with a remarkable 230.46% return over the past five years compared to the S&P 500's 91.73%. This long-term performance reinforces the notion that Eaton Corp. Plc is fairly valued in the current market context.