PEG Ratio is defined as the PE Ratio without NRI divided by the growth ratio. The growth rate we use is the 5-Year EBITDA growth rate. As of today, Eaton's PE Ratio without NRI is 34.99. Eaton's 5-Year EBITDA growth rate is 8.30%. Therefore, Eaton's PEG Ratio for today is 4.22.
* The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
The historical rank and industry rank for Eaton's PEG Ratio or its related term are showing as below:
ETN'
s PEG Ratio Range Over the Past 10 Years
Min: 0.96 Med: 2.32 Max: 390.83
Current: 4.22
During the past 13 years, Eaton's highest PEG Ratio was 390.83. The lowest was 0.96. And the median was 2.32.
ETN's PEG Ratio is ranked worse than 77.66% of 1276
companies
in the Industrial Products industry
Industry Median: 1.71
vs ETN: 4.22
Peter Lynch thinks a company with a P/E ratio equal to its growth rate is fairly valued.
Eaton PEG Ratio Historical Data
The historical data trend for Eaton's PEG Ratio 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.
For the Specialty Industrial Machinery subindustry, Eaton's PEG Ratio, along with its competitors' market caps and PEG Ratio 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 PEG Ratio Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, Eaton's PEG Ratio distribution charts can be found below:
* The bar in red indicates where Eaton's PEG Ratio falls into.
Eaton PEG Ratio Calculation
PEG Ratio is defined as the PE Ratio without NRI divided by the growth ratio.
The ratio we use is the 5-Year EBITDA growth rate.
* 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.
* Note: The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
Eaton (NYSE:ETN) PEG Ratio Explanation
To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the P/E ratio divided by the growth ratio. He thinks a company with a P/E ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a P/E of 20, instead of a company growing 10% a year with a P/E of 10.
Eaton PEG Ratio Related Terms
Thank you for viewing the detailed overview of Eaton's PEG Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
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.
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