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Eaton (ETN) Cyclically Adjusted PB Ratio : 7.77 (As of Jun. 28, 2025)


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What is Eaton Cyclically Adjusted PB Ratio?

As of today (2025-06-28), Eaton's current share price is $353.23. Eaton's Cyclically Adjusted Book per Share for the quarter that ended in Mar. 2025 was $45.46. Eaton's Cyclically Adjusted PB Ratio for today is 7.77.

The historical rank and industry rank for Eaton's Cyclically Adjusted PB Ratio or its related term are showing as below:

ETN' s Cyclically Adjusted PB Ratio Range Over the Past 10 Years
Min: 1.96   Med: 2.97   Max: 8.48
Current: 7.66

During the past years, Eaton's highest Cyclically Adjusted PB Ratio was 8.48. The lowest was 1.96. And the median was 2.97.

ETN's Cyclically Adjusted PB Ratio is ranked worse than
88.97% of 2230 companies
in the Industrial Products industry
Industry Median: 2.05 vs ETN: 7.66

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 PB Ratio. The Cyclically Adjusted Book per Share is the average of the inflation adjusted book value per share of a company over the past 10 years.

Eaton's adjusted book value per share data for the three months ended in Mar. 2025 was $47.294. Add all the adjusted book value per share for the past 10 years together and divide the count will get our Cyclically Adjusted Book per Share, which is $45.46 for the trailing ten years ended in Mar. 2025.

Shiller PE for Stocks: The True Measure of Stock Valuation


Eaton Cyclically Adjusted PB Ratio Historical Data

The historical data trend for Eaton's Cyclically Adjusted PB 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.

* Premium members only.

Eaton Cyclically Adjusted PB Ratio Chart

Eaton Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Cyclically Adjusted PB Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.57 4.67 3.80 5.50 7.39

Eaton Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
Cyclically Adjusted PB Ratio 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 7.11 7.03 7.45 7.39 5.98

Competitive Comparison of Eaton's Cyclically Adjusted PB Ratio

For the Specialty Industrial Machinery subindustry, Eaton's Cyclically Adjusted PB Ratio, along with its competitors' market caps and Cyclically Adjusted PB 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 Cyclically Adjusted PB Ratio Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Eaton's Cyclically Adjusted PB Ratio distribution charts can be found below:

* The bar in red indicates where Eaton's Cyclically Adjusted PB Ratio falls into.


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Eaton Cyclically Adjusted PB Ratio Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted PB Ratio takes the Book Value per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/B calculation. Because it considers this 10-year average, it's often referred to as the CAPB 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 PB Ratio.

Eaton's Cyclically Adjusted PB Ratio for today is calculated as

Cyclically Adjusted PB Ratio=Share Price/ Cyclically Adjusted Book per Share
=353.23/45.46
=7.77

* 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 Book per Share for the quarter that ended in Mar. 2025 is calculated as:

For example, Eaton's adjusted Book Value per Share data for the three months ended in Mar. 2025 was:

Adj_Book=Book Value per Share/CPI of Mar. 2025 (Change)*Current CPI (Mar. 2025)
=47.294/123.4051*123.4051
=47.294

Current CPI (Mar. 2025) = 123.4051.

Eaton Quarterly Data

Book Value per Share CPI Adj_Book
201506 33.696 100.573 41.346
201509 33.202 100.274 40.861
201512 33.099 99.676 40.979
201603 33.884 99.676 41.950
201606 33.693 101.072 41.138
201609 34.102 100.274 41.969
201612 33.275 99.676 41.196
201703 33.886 100.374 41.661
201706 34.964 100.673 42.859
201709 37.660 100.474 46.255
201712 39.220 100.075 48.363
201803 39.476 100.573 48.438
201806 38.518 101.072 47.029
201809 38.657 101.371 47.060
201812 38.024 100.773 46.564
201903 38.367 101.670 46.569
201906 38.824 102.168 46.894
201909 38.336 102.268 46.260
201912 38.911 102.068 47.045
202003 35.613 102.367 42.932
202006 35.461 101.769 43.000
202009 36.317 101.072 44.342
202012 37.503 101.072 45.790
202103 37.629 102.367 45.362
202106 38.655 103.364 46.150
202109 40.068 104.859 47.155
202112 41.156 106.653 47.620
202203 41.654 109.245 47.053
202206 41.125 112.779 45.000
202209 40.402 113.504 43.926
202212 42.831 115.436 45.788
202303 43.776 117.609 45.933
202306 44.995 119.662 46.403
202309 46.038 120.749 47.051
202312 47.661 120.749 48.710
202403 48.243 120.990 49.206
202406 48.277 122.318 48.706
202409 48.373 121.594 49.094
202412 47.055 122.439 47.426
202503 47.294 123.405 47.294

Add all the adjusted book value per share together and divide the count will get our Cyclically Adjusted Book 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 PB Ratio Explanation

Compared with the regular PB Ratio, which works poorly for cyclical businesses, the Cyclically Adjusted PB Ratio smoothed out the fluctuations of book value 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 PB Ratio should give similar results to regular PB Ratio.


Eaton Cyclically Adjusted PB Ratio Related Terms

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


Eaton Business Description

Address
30 Pembroke Road, Eaton House, Dublin, IRL, D04 Y0C2
Founded in 1911 by Joseph Eaton, the eponymous company began by selling truck axles in New Jersey. Eaton has since become an industrial powerhouse largely through acquisitions in various end markets. Eaton's portfolio can broadly be divided into two parts: its electrical and industrial businesses. Its electrical portfolio (representing around 70% of company revenue) sells components within data centers, utilities, and commercial and residential buildings, while its industrial business (30% of revenue) sells components within commercial and passenger vehicles and aircraft. Eaton receives favorable tax treatment as a domiciliary of Ireland, but it generates over half of its revenue within the US.
Executives
Dorothy C Thompson director 1000 EATON BLVD., CLEVELAND OH 44122
Heath B. Monesmith officer: See Remarks below. 600 TRAVIS, SUITE 5600, HOUSTON TX 77002
Craig Arnold director, officer: See Remarks below. EATON CENTER, 1111 SUPERIOR AVENUE, CLEVELAND OH 44114
Marshall Ernest W Jr officer: See Remarks below. 1000 EATON BLVD, CLEVELAND OH 44122
Peter Denk officer: See remarks below C/O EATON CORPORATION PLC, 1000 EATON BLVD., CLEVELAND OH 44122
Michael Yelton officer: See remarks below C/O EATON CORPORATION PLC, 1000 EATON BLVD., CLEVELAND OH 44122
Gregory R Page director EATON CENTER, 1111 SUPERIOR AVENUE, CLEVELAND OH 44114
Szmagala Taras G. Jr. officer: See remarks below C/O EATON CORPORATION PLC, 1000 EATON BOULEVARD, CLEVELAND OH 44122
Olivier Leonetti director 5757 N. GREEN BAY AVENUE, P.O. BOX 591, MILWAUKEE WI 53201
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
Nandakumar Cheruvatath officer: See Remarks below 1000EATON BLVD., CLEVELAND OH 44122
Joao V Faria 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
Brian S Brickhouse officer: See Remarks below. 1000 EATON BLVD., CLEVELAND OH 44122