ETN - Eaton Corporation plc
Price:
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CONSENSUS:
Buy
DETAILS
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PRICE TARGET:
$431.88
DETAILS
HIGH:
$500.00
LOW:
$350.00
MEDIAN:
$440.50
CONSENSUS:
$431.88
UPSIDE:
8.37%
AlphaVal
Deterministic, archetype-aware fair value
Stable Earnings Power
65% confidence
Primary model: P/Adj-EPS × Normalized Multiple
Adjust Assumptions
16.8x
11.54$
Key Value Driver
Normalized P/E multiple (17x base case)
Implied Market Multiple
34.5x
Plain-Language Summary
Our base-case estimate uses a valuation based on adjusted earnings per share and a normalized price-to-earnings multiple. We then blend that result with the average analyst price target of $431.88 from 39 analysts, using a 30% weight on analyst consensus. That produces an estimated intrinsic value of $265.13 per share.
Warnings
Dividend-based valuation: $282.91 (above our primary estimate by 46%). Large gaps may signal the dividend doesn't reflect full earning power.
Wall Street's average price target is $431.88 (from 39 analysts). Our estimate is 55% below the consensus -- consider that gap carefully.
Key Risks
- Growth DCF inappropriate — terminal value assumptions dominate
- EV/EBITDA misleading for regulated businesses where capex is mandated
- Regulatory risk is a fat tail not visible in normal multiples