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EatonFRA:3EC -2.05%90 5-Year Yield-on-Cost % is 1.44 as of Jul. 17, 2026, which is 54% below its 10-year median of 3.11. GuruFocus rates FRA:3EC with a GF Score™ of 90/100 and a GF Value™ of €353.36 (Fairly Valued). The stock has 5 warning signs investors should review. Among 1,920 Industrial Products companies, Eaton ranks worse than 56.3% on this metric.
Eaton's yield on cost for the quarter that ended in Mar. 2026 was 1.44.
The historical rank and industry rank for Eaton's 5-Year Yield-on-Cost % or its related term are showing as below:
FRA:3EC'
s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 1.39 Med: 3.11 Max: 6.22
Current: 1.44
During the past 13 years, Eaton's highest Yield on Cost was 6.22. The lowest was 1.39. And the median was 3.11.
FRA:3EC's 5-Year Yield-on-Cost % is ranked worse than 56.3% of 1920
companies
in the Industrial Products industry
Industry Median: 1.895
vs FRA:3EC: 1.44
Of course the risk here is that the company may not raise its dividends as it did before. The key is to select the companies that can consistently raise its dividends. Usually companies with long history of raising dividends tend to do so.
Eaton 5-Year Yield-on-Cost % Related Terms
FRA:3EC vs PH, CMI, EMR: 5-Year Yield-on-Cost % Comparison
For the Specialty Industrial Machinery subindustry, Eaton's 5-Year Yield-on-Cost %, along with its competitors' market caps and 5-Year Yield-on-Cost % 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 5-Year Yield-on-Cost % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Eaton's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where Eaton's 5-Year Yield-on-Cost % falls into.
Dividend Yield % and dividend growth of a stock is an important factor for income investors. But if company A raises its dividend constantly faster than company B, company A's future dividend yield might be much higher than Company B's even if their yields are the same now and their stock prices do not change.
Yield on Cost assumes that you buy and the stock today, and hold it for 5 years. If the company raises it dividends at the same rate as it did over the past 5 years, the dividends investors receive annually in 5 years relative to the stock price today.
Therefore, Yield-on-Cost of Eaton is calculated as
Eaton (FRA:3EC) has a 5-Year Yield-on-Cost % of 1.44 as of Jul. 17, 2026. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Eaton and its competitors. This is 54% below median its historical median of 3.11. Over the past decade, Eaton's 5-Year Yield-on-Cost % has ranged from 1.39 to 6.22. According to the industry distribution chart, Eaton ranks #1081 out of 1920 companies in the Industrial Products industry, placing it in the top 56.3%.
Is Eaton's 5-Year Yield-on-Cost % too high?
Eaton's current 5-Year Yield-on-Cost % of 1.44 is 54% below median its 10-year median of 3.11. Over the past 10 years, this metric has ranged from a low of 1.39 to a high of 6.22. The Industrial Products industry median 5-Year Yield-on-Cost % is 1.90. Eaton's value of 1.44 is 24% below this industry median. Based on the distribution chart, Eaton ranks #1081 out of 1920 companies in the Industrial Products industry, which is below the industry midpoint. 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 5-Year Yield-on-Cost % compare to PH and CMI?
According to the Industrial Products industry distribution chart, Eaton ranks #1081 out of 1920 companies for 5-Year Yield-on-Cost %. This places Eaton in the lower half of its industry. The industry median 5-Year Yield-on-Cost % is 1.90. Eaton's value of 1.44 is 24% below this benchmark. Historically, Eaton's own 5-Year Yield-on-Cost % has ranged from 1.39 to 6.22 over the past decade. While the company's 10-year median is 3.11 vs. the industry median of 1.90, 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 5-Year Yield-on-Cost % for an Industrial Products company?
The median 5-Year Yield-on-Cost % among Industrial Products companies is 1.90, based on 1,920 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year Yield-on-Cost % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year Yield-on-Cost % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Eaton's current 5-Year Yield-on-Cost % of 1.44 is 24% 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 5-Year Yield-on-Cost % mean?
A high 5-Year Yield-on-Cost % can signal that a stock is expensive relative to its fundamentals. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Eaton and its competitors. For the Industrial Products industry, the median 5-Year Yield-on-Cost % is 1.90 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Eaton's current 5-Year Yield-on-Cost % is 1.44, which is 54% below median its own 10-year median of 3.11. 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 €353.36, compared to a current price of €358.60 — trading 1.5% above its estimated fair value. The current 5-Year Yield-on-Cost % is 1.44, which is 54% below median its 10-year median of 3.11 and 24% below the Industrial Products industry median of 1.90. Eaton's overall GF Score™ is 90/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 5-Year Yield-on-Cost % calculated?
5-Year Yield-on-Cost % is calculated from a company's financial statements. For Eaton (FRA:3EC), the current 5-Year Yield-on-Cost % is 1.44 as of Jul. 17, 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 €358.60 is trading 1.5% above its estimated GF Value™ of €353.36.
GuruFocus considers Eaton to be Fairly Valued.
Key valuation signals for FRA:3EC:
5-Year Yield-on-Cost %: 1.44 (54% below median its 10-year median of 3.11)
GF Value™: €353.36 vs. price of €358.60 (1.5% above fair value)
Industry Position: 24% below the Industrial Products median (#1081 of 1920)
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.
90GF Score
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5-Year Yield-on-Cost % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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