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Eaton (ETN) Cyclically Adjusted Price-to-FCF : 56.70 (As of Apr. 27, 2024)


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What is Eaton Cyclically Adjusted Price-to-FCF?

As of today (2024-04-27), Eaton's current share price is $324.30. Eaton's Cyclically Adjusted FCF per Share for the quarter that ended in Dec. 2023 was $5.72. Eaton's Cyclically Adjusted Price-to-FCF for today is 56.70.

The historical rank and industry rank for Eaton's Cyclically Adjusted Price-to-FCF or its related term are showing as below:

ETN' s Cyclically Adjusted Price-to-FCF Range Over the Past 10 Years
Min: 15.44   Med: 23.81   Max: 57.78
Current: 55.39

During the past years, Eaton's highest Cyclically Adjusted Price-to-FCF was 57.78. The lowest was 15.44. And the median was 23.81.

ETN's Cyclically Adjusted Price-to-FCF is ranked worse than
68.73% of 1020 companies
in the Industrial Products industry
Industry Median: 32.64 vs ETN: 55.39

The Shiller PE Ratio was first used by professor Robert Shiller. He uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings per share of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Price-to-FCF. The Cyclically Adjusted FCF per Share is the average of the inflation adjusted free cash flow per share of a company over the past 10 years.

Eaton's adjusted free cash flow per share data for the three months ended in Dec. 2023 was $2.626. Add all the adjusted free cash flow per share for the past 10 years together and divide 10 will get our Cyclically Adjusted FCF per Share, which is $5.72 for the trailing ten years ended in Dec. 2023.

Shiller PE for Stocks: The True Measure of Stock Valuation


Eaton Cyclically Adjusted Price-to-FCF Historical Data

The historical data trend for Eaton's Cyclically Adjusted Price-to-FCF can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Eaton Cyclically Adjusted Price-to-FCF Chart

Eaton Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Cyclically Adjusted Price-to-FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only 23.97 28.13 36.83 30.08 42.06

Eaton Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Cyclically Adjusted Price-to-FCF Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 30.08 31.88 36.44 37.76 42.06

Competitive Comparison of Eaton's Cyclically Adjusted Price-to-FCF

For the Specialty Industrial Machinery subindustry, Eaton's Cyclically Adjusted Price-to-FCF, along with its competitors' market caps and Cyclically Adjusted Price-to-FCF data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Eaton's Cyclically Adjusted Price-to-FCF Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Eaton's Cyclically Adjusted Price-to-FCF distribution charts can be found below:

* The bar in red indicates where Eaton's Cyclically Adjusted Price-to-FCF falls into.



Eaton Cyclically Adjusted Price-to-FCF Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted Price-to-FCF takes the Free Cash Flow per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/FCF calculation. Because it considers this 10-year average, it's often referred to as the CAPFCF Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Price-to-FCF.

Eaton's Cyclically Adjusted Price-to-FCF for today is calculated as

Cyclically Adjusted Price-to-FCF=Share Price/ Cyclically Adjusted FCF per Share
=324.30/5.72
=56.70

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Eaton's Cyclically Adjusted FCF per Share for the quarter that ended in Dec. 2023 is calculated as:

For example, Eaton's adjusted Free Cash Flow per Share data for the three months ended in Dec. 2023 was:

Adj_FreeCashFlowPerShare=Free Cash Flow per Share/CPI of Dec. 2023 (Change)*Current CPI (Dec. 2023)
=2.626/120.1096*120.1096
=2.626

Current CPI (Dec. 2023) = 120.1096.

Eaton Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201403 -0.205 100.573 -0.245
201406 1.060 100.773 1.263
201409 0.308 100.474 0.368
201412 1.460 99.576 1.761
201503 -0.060 99.975 -0.072
201506 0.934 100.573 1.115
201509 1.825 100.274 2.186
201512 1.387 99.676 1.671
201603 0.602 99.676 0.725
201606 1.331 101.072 1.582
201609 1.534 100.274 1.837
201612 1.077 99.676 1.298
201703 0.769 100.374 0.920
201706 0.990 100.673 1.181
201709 1.449 100.474 1.732
201712 1.602 100.075 1.923
201803 0.471 100.573 0.562
201806 0.800 101.072 0.951
201809 1.992 101.371 2.360
201812 1.540 100.773 1.836
201903 0.944 101.670 1.115
201906 1.728 102.168 2.031
201909 2.247 102.268 2.639
201912 1.903 102.068 2.239
202003 0.513 102.367 0.602
202006 1.662 101.769 1.962
202009 2.068 101.072 2.458
202012 2.106 101.072 2.503
202103 0.352 102.367 0.413
202106 1.206 103.364 1.401
202109 0.824 104.859 0.944
202112 1.571 106.653 1.769
202203 -0.182 109.245 -0.200
202206 0.502 112.734 0.535
202209 2.073 113.431 2.195
202212 2.439 115.425 2.538
202303 0.522 117.618 0.533
202306 1.722 119.611 1.729
202309 2.273 120.708 2.262
202312 2.626 120.110 2.626

Add all the adjusted free cash flow per share together and divide 10 will get our Cyclically Adjusted FCF per Share.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.


Eaton  (NYSE:ETN) Cyclically Adjusted Price-to-FCF Explanation

Compared with the regular Price-to-Free-Cash-Flow, which works poorly for cyclical businesses, the Cyclically Adjusted Price-to-FCF smoothed out the fluctuations of free cash flow during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Cyclically Adjusted Price-to-FCF should give similar results to regular Price-to-Free-Cash-Flow.


Eaton Cyclically Adjusted Price-to-FCF Related Terms

Thank you for viewing the detailed overview of Eaton's Cyclically Adjusted Price-to-FCF provided by GuruFocus.com. Please click on the following links to see related term pages.


Eaton (ETN) Business Description

Industry
Traded in Other Exchanges
Address
30 Pembroke Road, Eaton House, Dublin, IRL, D04 Y0C2
Eaton is a diversified power management company operating for over 100 years. The company operates through various segments, including electrical Americas, electrical global, aerospace, vehicle, and eMobility. Eaton's portfolio can broadly be divided into two halves. One part of its portfolio is housed under its industrial sector umbrella, which serves a large variety of end markets like commercial vehicles, general aviation, and trucks. The other portion is Eaton's electrical sector portfolio, which serves data centers, utilities, and the residential end market, among others. While the company receives favorable tax treatment with its Ireland domicile, most of its operations are in the U.S.
Executives
Sternadt Paulo Ruiz officer: See remarks below 1000 EATON BLVD., CLEVELAND OH 44122
Thomas B Okray officer: See Remarks below. 5008 AIRPORT ROAD NW, ROANOKE VA 24012
Szmagala Taras G. Jr. officer: See remarks below C/O EATON CORPORATION PLC, 1000 EATON BOULEVARD, CLEVELAND OH 44122
Craig Arnold director, officer: See Remarks below. EATON CENTER, 1111 SUPERIOR AVENUE, CLEVELAND OH 44114
Peter Denk officer: See remarks below C/O EATON CORPORATION PLC, 1000 EATON BLVD., CLEVELAND OH 44122
Heath B. Monesmith officer: See Remarks below. 600 TRAVIS, SUITE 5600, HOUSTON TX 77002
Nandakumar Cheruvatath officer: See Remarks below 1000EATON BLVD., CLEVELAND OH 44122
Michael Yelton officer: See remarks below C/O EATON CORPORATION PLC, 1000 EATON BLVD., CLEVELAND OH 44122
Joao V Faria officer: See Remarks below. 1000 EATON BLVD., CLEVELAND OH 44122
Brian S Brickhouse officer: See Remarks below. 1000 EATON BLVD., CLEVELAND OH 44122
Daniel Roy Hopgood officer: See Remarks below. 2135 WEST MAPLE ROAD, TROY MI 48084-7186
Deborah L Mccoy director CONTINENTAL AIRLINES INC., 1600 SMITH ST. HQS FL, HOUSTON TX 77002
Boise April Miller officer: See Remarks below. C/O INTEL CORPORATION, 2200 MISSION COLLEGE BLVD, SANTA CLARA CA 95054
Christopher M Connor director THE SHERWIN WILLIAMS CO, 101 W. PROSPECT AVENUE, CLEVELAND OH 44115-1027
Dorothy C Thompson director 1000 EATON BLVD., CLEVELAND OH 44122