DCF Valuation
Base-case fair value
$303.90
Intrinsic $405.21 · 25% MOS
Base-case summary
Our base-case DCF for Eaton Corp plc (ETN) projects 10 years of free cash flow growth at 18.9% for years 1–5 and 9.5% for years 6–10, anchored to 18.9% historical FCF growth, then applies a 2.5% perpetual growth rate and a 8.0% discount rate. Starting from $3.8B in trailing free cash flow, this produces an intrinsic value of $405.21 per share. A 25% safety margin gives a fair value of $303.90.
See 3 scenarios side by side
Conservative, Base, and Optimistic fair values, plus the sensitivity matrix and FCF history. Free account.
Model inputs
TTM Free Cash Flow
$3.8B
Cash & equivalents
$751M
Total debt
$21.9B
Shares outstanding
389M