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Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company. The details of how we calculate the intrinsic value of stocks are described in detail here.
As of today (2024-04-28), Eaton's Intrinsic Value: Projected FCF is $96.84. The stock price of Eaton is $324.30. Therefore, Eaton's Price-to-Intrinsic-Value-Projected-FCF of today is 3.4.
The historical rank and industry rank for Eaton's Intrinsic Value: Projected FCF or its related term are showing as below:
During the past 13 years, the highest Price-to-Intrinsic-Value-Projected-FCF of Eaton was 3.35. The lowest was 0.96. And the median was 1.19.
The historical data trend for Eaton's Intrinsic Value: Projected 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.
Eaton Annual Data | |||||||||||||||||||||
Trend | Dec14 | Dec15 | Dec16 | Dec17 | Dec18 | Dec19 | Dec20 | Dec21 | Dec22 | Dec23 | |||||||||||
Intrinsic Value: Projected FCF | Get a 7-Day Free Trial | 80.08 | 84.13 | 85.52 | 86.02 | 96.84 |
Eaton Quarterly Data | ||||||||||||||||||||
Mar19 | Jun19 | Sep19 | Dec19 | Mar20 | Jun20 | Sep20 | Dec20 | Mar21 | Jun21 | Sep21 | Dec21 | Mar22 | Jun22 | Sep22 | Dec22 | Mar23 | Jun23 | Sep23 | Dec23 | |
Intrinsic Value: Projected FCF | Get a 7-Day Free Trial | 86.02 | 85.78 | 88.05 | 90.49 | 96.84 |
For the Specialty Industrial Machinery subindustry, Eaton's Price-to-Projected-FCF, along with its competitors' market caps and Price-to-Projected-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.
For the Industrial Products industry and Industrials sector, Eaton's Price-to-Projected-FCF distribution charts can be found below:
* The bar in red indicates where Eaton's Price-to-Projected-FCF falls into.
Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company.
The details of how we calculate the intrinsic value of stocks are described in detail here.
This method smooths out the free cash flow over the past 6-7 years, multiplies the results by a growth multiple, and adds a portion of Total Stockholders Equity.
Intrinsic Value: Projected FCF = ( Growth Multiple * Free Cash Flow (6 year avg) + 0.8 * Total Stockholders Equity (most recent) ) / Shares Outstanding (Diluted Average)
In the case of negative Total Stockholders Equity, the following formula is used (see Explanation section below for the reason):
Intrinsic Value: Projected FCF = ( Growth Multiple * Free Cash Flow (6 year avg) + Total Stockholders Equity (most recent) / 0.8 ) / Shares Outstanding (Diluted Average)
Add all the Free Cash Flow together and divide 6 will get Eaton's Free Cash Flow(6 year avg) = $2,337.92.
Eaton's Intrinsic Value: Projected FCF for today is calculated as
Intrinsic Value: Projected FCF | = | (Growth Multiple | * | Free Cash Flow (6 year avg) | + | Total Stockholders Equity (Dec23) | * | 0.8) | / | Shares Outstanding (Diluted Average) |
= | (10.125989035996 | * | 2337.92 | + | 19036 | * | 0.8) | / | 401.700 | |
= | 96.84 |
* 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 (NYSE:ETN) Intrinsic Value: Projected FCF Explanation
The growth multiple is capped between 8.35 and 17.74.
Total Stockholders Equity weighting is more art than science and it should always be revisited in more detail when researching a company. Weightings from 0% to 100% to more than 100% are possible. 80% was chosen as a happy median after taking the above ideas into consideration.
Eaton's Price-to-Intrinsic-Value-Projected-FCF for today is calculated as
Price-to-Intrinsic-Value-Projected-FCF | = | Share Price | / | Intrinsic Value: Projected FCF |
= | 324.30 | / | 96.844790358567 | |
= | 3.35 |
* 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.
Thank you for viewing the detailed overview of Eaton's Intrinsic Value: Projected FCF provided by GuruFocus.com. Please click on the following links to see related term pages.
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 |
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