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Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
EatonFRA:3EC -0.22%90 Equity-to-Asset is 0.36 as of Jun. 2026, which is 27% below its 10-year median of 0.49. GuruFocus rates FRA:3EC with a GF Score™ of 90/100 and a GF Value™ of €361.25 (Fairly Valued). The stock has 4 warning signs investors should review. Among 3,083 Industrial Products companies, Eaton ranks worse than 81.15% on this metric.
Equity to Asset ratio is calculated as total stockholders equity divided by total asset. Eaton's Total Stockholders Equity for the quarter that ended in Jun. 2026 was €17,580 Mil. Eaton's Total Assets for the quarter that ended in Jun. 2026 was €48,765 Mil.
Therefore, Eaton's Equity to Asset Ratio for the quarter that ended in Jun. 2026 was 0.36.
The historical rank and industry rank for Eaton's Equity-to-Asset or its related term are showing as below:
FRA:3EC'
s Equity-to-Asset Range Over the Past 10 Years
Min: 0.36 Med: 0.49 Max: 0.53
Current: 0.36
During the past 13 years, the highest Equity to Asset Ratio of Eaton was 0.53. The lowest was 0.36. And the median was 0.49.
FRA:3EC's Equity-to-Asset is ranked worse than 81.15% of 3083
companies
in the Industrial Products industry
Industry Median: 0.56
vs FRA:3EC: 0.36
Equity to Asset ratio can vary greatly across different industries, as they have different capital structure. A company with smaller Equity to Asset ratio (more leveraged) may have higher ROE % because of the leverage.
For banks, the required minimum Equity to Asset ratio by regulation is 5%. Some stronger banks may have Equity to Asset Ratio of more than 10%.
Eaton Equity-to-Asset Related Terms
Eaton Equity-to-Asset Historical Data
* Premium members only.
The historical data trend for Eaton's Equity-to-Asset 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.
FRA:3EC vs PH, CMI, EMR: Equity-to-Asset Comparison
For the Specialty Industrial Machinery subindustry, Eaton's Equity-to-Asset, along with its competitors' market caps and Equity-to-Asset 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 Equity-to-Asset vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Eaton's Equity-to-Asset distribution charts can be found below:
* The bar in red indicates where Eaton's Equity-to-Asset falls into.
Equity to Asset ratio measures the ratios of the portion of the asset owned by shareholders out of the total asset. It indicates the leverage of the company, and the amount of debt the company uses in its operation.
Equity to Asset ratio is calculated by dividing total stockholders equity by total asset.
Eaton's Equity to Asset Ratio for the fiscal year that ended in Dec. 2025 is calculated as
* 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 (FRA:3EC) has a Equity-to-Asset of 0.36 as of Jun. 2026. Equity-to-asset ratio equals total company equity divided by total assets. It measures financial leverage. View historical data on Eaton and its competitors. This is 27% below median its historical median of 0.49. Over the past decade, Eaton's Equity-to-Asset has ranged from 0.36 to 0.53. According to the industry distribution chart, Eaton ranks #2502 out of 3083 companies in the Industrial Products industry, placing it in the top 81.2%.
Is Eaton's Equity-to-Asset too high?
Eaton's current Equity-to-Asset of 0.36 is 27% below median its 10-year median of 0.49. Over the past 10 years, this metric has ranged from a low of 0.36 to a high of 0.53. The Industrial Products industry median Equity-to-Asset is 0.56. Eaton's value of 0.36 is 35.7% below this industry median. Based on the distribution chart, Eaton ranks #2502 out of 3083 companies in the Industrial Products industry, which is in the bottom quartile relative to peers. Overall, Eaton has a GF Score™ of 90/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Eaton's Equity-to-Asset compare to PH and CMI?
According to the Industrial Products industry distribution chart, Eaton ranks #2502 out of 3083 companies for Equity-to-Asset. This places Eaton in the lower half of its industry. The industry median Equity-to-Asset is 0.56. Eaton's value of 0.36 is 35.7% below this benchmark. Historically, Eaton's own Equity-to-Asset has ranged from 0.36 to 0.53 over the past decade. While the company's 10-year median is 0.49 vs. the industry median of 0.56, Eaton has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Equity-to-Asset for an Industrial Products company?
The median Equity-to-Asset among Industrial Products companies is 0.56, based on 3,083 companies in the industry. Companies in the top quartile (top 25%) have a Equity-to-Asset significantly above this median, while those in the bottom quartile fall well below. However, Equity-to-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Eaton's current Equity-to-Asset of 0.36 is 35.7% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Equity-to-Asset mean?
A high Equity-to-Asset can signal that a stock is expensive relative to its fundamentals. Equity-to-asset ratio equals total company equity divided by total assets. It measures financial leverage. View historical data on Eaton and its competitors. For the Industrial Products industry, the median Equity-to-Asset is 0.56 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Eaton's current Equity-to-Asset is 0.36, which is 27% below median its own 10-year median of 0.49. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Eaton stock overvalued right now?
Based on GuruFocus' analysis, Eaton (FRA:3EC) is currently considered Fairly Valued. The stock's GF Value™ is €361.25, compared to a current price of €361.90 — trading 0.2% above its estimated fair value. The current Equity-to-Asset is 0.36, which is 27% below median its 10-year median of 0.49 and 35.7% below the Industrial Products industry median of 0.56. Eaton's overall GF Score™ is 90/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Equity-to-Asset calculated?
Equity-to-Asset is calculated from a company's financial statements. For Eaton (FRA:3EC), the current Equity-to-Asset is 0.36 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Eaton (FRA:3EC) Overvalued in 2026?
Based on GuruFocus' analysis, Eaton stock appears to be overvalued.
The current stock price of €361.90 is trading 0.2% above its estimated GF Value™ of €361.25.
GuruFocus considers Eaton to be Fairly Valued.
Key valuation signals for FRA:3EC:
Equity-to-Asset: 0.36 (27% below median its 10-year median of 0.49)
GF Value™: €361.25 vs. price of €361.90 (0.2% above fair value)
Industry Position: 35.7% below the Industrial Products median (#2502 of 3083)
No single metric tells the full story. See the FRA:3EC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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.
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