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Eaton Corp PLC (NYSE:ETN)
EV-to-EBITDA
12.91 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Eaton Corp PLC's enterprise value is $41,066 Mil. Eaton Corp PLC's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Dec. 2016 was $3,182 Mil. Therefore, Eaton Corp PLC's EV/EBITDA ratio for today is 12.91.

ETN' s EV-to-EBITDA Range Over the Past 10 Years
Min: 5.3   Max: 18
Current: 12.88

5.3
18

During the past 13 years, the highest EV/EBITDA Ratio of Eaton Corp PLC was 18.00. The lowest was 5.30. And the median was 10.90.

ETN's EV-to-EBITDA is ranked lower than
53% of the 2030 Companies
in the Global Diversified Industrials industry.

( Industry Median: 12.09 vs. ETN: 12.88 )

EV/EBITDA (Enterprise value/EBITDA) is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the P/E Ratio to determine the fair market value of a company.

As of today, Eaton Corp PLC's stock price is $77.05. Eaton Corp PLC's earnings per share for the trailing twelve months (TTM) ended in Dec. 2016 was $4.22. Therefore, Eaton Corp PLC's P/E Ratio for today is 18.26.

The "classic" EV/EBITDA ratio is much better in capturing debt and net cash than the P/E Ratio.


Definition

Eaton Corp PLC's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=41065.850/3182
=12.91

Eaton Corp PLC's current Enterprise Value is $41,066 Mil.
Eaton Corp PLC's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2016 was 714 (Mar. 2016 ) + 849 (Jun. 2016 ) + 850 (Sep. 2016 ) + 769 (Dec. 2016 ) = $3,182 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Explanation

EV/EBITDA (Enterprise value/EBITDA) is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the P/E Ratio to determine the fair market value of a company.

Eaton Corp PLC's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=77.05/4.22
=18.26

Eaton Corp PLC's share price for today is $77.05.
Eaton Corp PLC's Earnings Per Share for the trailing twelve months (TTM) ended in Dec. 2016 was 0.88 (Mar. 2016 ) + 1.07 (Jun. 2016 ) + 1.15 (Sep. 2016 ) + 1.12 (Dec. 2016 ) = $4.22.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Study has found that the companies with the lowest EV/EBITDA outperforms companies measured as cheap by other ratios such as P/E Ratio.

Please read Which price ratio outperforms the enterprise multiple?


Related Terms

Enterprise Value, Earnings Before Depreciation and Amortization, P/E Ratio


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Eaton Corp PLC Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebitda 10.536.5713.0211.377.7516.5914.0211.619.7611.90

Eaton Corp PLC Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
ev2ebitda 11.6711.6111.6711.459.579.7611.5011.0711.5211.90
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