Question 1

What is Eaton Corporation's EV/EBITDA ratio?

Accepted Answer

Eaton Corporation (ETN) EV/EBITDA ratio is 28.8× as of July 22, 2026. The ratio is calculated by dividing enterprise value by trailing twelve-month EBITDA, using USD-normalised financials (IAS 21 exchange-rate translation for non-USD reporters).

Question 2

How is the EV/EBITDA ratio calculated?

Accepted Answer

EV/EBITDA = Enterprise Value ÷ Trailing Twelve-Month (TTM) EBITDA, where Enterprise Value = Market Capitalisation + Total Debt − Cash & Short-Term Investments. All inputs are sourced from audited GAAP/IFRS filings and translated to USD using period-end exchange rates so the multiple is comparable across companies and currencies.

Question 3

What is the EV/EBITDA ratio?

Accepted Answer

The EV/EBITDA ratio (the enterprise multiple) compares enterprise value (EV) to trailing twelve-month (TTM) EBITDA. EV is calculated as market capitalisation + total debt − cash & short-term investments. Because EV/EBITDA is capital-structure-neutral and ignores non-cash depreciation and amortisation, it is the standard multiple used in M&A and for cross-company or cross-border comparisons. Note: this calculation uses a simplified EV (minority interest and preferred equity excluded due to data availability), consistent with most public financial-data providers.

Question 4

What is a good EV/EBITDA ratio for Eaton Corporation?

Accepted Answer

Mature, cash-generative businesses commonly trade in the 8–12× EV/EBITDA range; higher-growth, asset-light companies often trade at 15–25×+. EV/EBITDA is most useful for comparing companies with different capital structures (debt levels) or tax regimes. For Eaton Corporation specifically, the relevant sector benchmark is the current sector median of 15.9×.

Question 5

Is Eaton Corporation's EV/EBITDA ratio high or low?

Accepted Answer

Eaton Corporation's EV/EBITDA ratio of 28.8× is above its own 5-year average of 21.0× and above the sector median of 15.9×. That places the current reading at the 98th percentile of its 10-year history. A higher multiple usually reflects stronger expected growth, lower perceived risk, or higher returns on capital; a lower multiple reflects the opposite.

Question 6

What is Eaton Corporation's historical EV/EBITDA ratio range?

Accepted Answer

In the available daily series, Eaton Corporation (ETN) EV/EBITDA ratio has ranged from a low of 6.5× in 2009 to a high of 30.6× in 2026. The 5-year average is 21.0× and the 5-year median is 20.4×.

Question 7

What was Eaton Corporation's EV/EBITDA ratio in 2025?

Accepted Answer

Eaton Corporation (ETN) EV/EBITDA ratio at the end of 2025 was 21.6×. Annual values reflect the multiple on the last trading day of each calendar year, using the trailing twelve-month EBITDA figure available at that date.

Question 8

Why does Eaton Corporation's EV/EBITDA ratio change over time?

Accepted Answer

Valuation multiples move with two inputs: the numerator (enterprise value, which tracks share price plus net debt) and the denominator (EBITDA). Share-price changes — driven by interest rates, earnings expectations, risk appetite, and broader market sentiment — typically dominate short-term moves, while changes in the underlying fundamental drive the longer-term trend. As a result, the ratio can rise during stock-price rallies even if the business itself has not become more valuable, and fall during sell-offs even when fundamentals are improving.


2025	$124B	$6.21B	21.6×	-3.0×	Dec 31, 2025
2024	$131B	$5.63B	24.6×	+3.8×	Dec 31, 2024
2023	$96.2B	$4.98B	20.8×	+2.9×	Dec 31, 2023
2022	$62.5B	$3.97B	17.9×	-1.5×	Dec 31, 2022
2021	$68.9B	$3.99B	19.4×	+0.3×	Dec 31, 2021
2020	$47.9B	$2.89B	19.1×	+6.3×	Dec 31, 2020
2019	$39.2B	$3.71B	12.7×	+2.6×	Dec 31, 2019
2018	$29.5B	$3.6B	10.2×	+1.0×	Dec 31, 2018
2017	$34.8B	$4.53B	9.2×	-2.4×	Dec 31, 2017
2016	$30.2B	$3.28B	11.5×	+1.9×	Dec 31, 2016
2015	$24B	$3.31B	9.7×	-1.5×	Dec 31, 2015
2014	$31.9B	$3.59B	11.1×	-2.4×	Dec 31, 2014
2013	$36.1B	$3.24B	13.6×	-1.2×	Dec 31, 2013
2012	$20.7B	$2.06B	14.8×	+6.9×	Dec 31, 2012
2011	$14.5B	$2.19B	7.9×	-3.3×	Dec 31, 2011
2010	$17B	$1.73B	11.1×	-1.8×	Dec 31, 2010
2009	$10.5B	$1.02B	13.0×	+6.5×	Dec 31, 2009
2008	$8.23B	$1.85B	6.5×	-3.9×	Dec 31, 2008
2007	$14.3B	$1.65B	10.3×	+1.6×	Dec 31, 2007
2006	$11.2B	$1.48B	8.8×	+0.5×	Dec 31, 2006
2005	$9.98B	$1.47B	8.3×	-1.5×	Dec 31, 2005
2004	$11.1B	$1.29B	9.7×	+0.3×	Dec 31, 2004
2003	$8.2B	$984M	9.4×	+1.3×	Dec 31, 2003
2002	$5.63B	$893M	8.2×	—	Dec 31, 2002


Republic Services (RSG)	13.2×
Honeywell International (HON)	13.2×
Stanley Black & Decker (SWK)	13.2×
Copart (CPRT)	13.0×
Carlisle Companies (CSL)	12.8×
Equifax (EFX)	12.7×
Snap-on (SNA)	12.4×
Northrop Grumman (NOC)	12.2×
A. O. Smith (AOS)	12.1×
Brady (BRC)	12.1×
Canadian National Railway (CNI)	12.0×
Textron (TXT)	10.7×
Masco (MAS)	10.6×
Amentum Holdings (AMTM)	10.5×
FedEx (FDX)	10.5×
Andersons (ANDE)	10.2×
ABM Industries (ABM)	10.0×
McGrath RentCorp (MGRC)	9.3×
United Parcel Service (UPS)	9.1×
Delta Air Lines (DAL)	9.1×
Alamo Group (ALG)	8.4×
AGCO (AGCO)	7.7×
United Airlines Holdings (UAL)	7.3×
Matthews International (MATW)	7.0×
Upwork (UPWK)	6.9×

EV/EBITDA for Eaton Corporation (ETN) 2002-2026

EV/EBITDA daily chart for Eaton Corporation (ETN)

Historical EV/EBITDA for Eaton Corporation (ETN) from 2002 to 2025

About EV/EBITDA at Eaton Corporation (ETN)

Eaton Corporation EV/EBITDA by Year

Eaton Corporation EV/EBITDA 2025: 21.6×

Eaton Corporation EV/EBITDA 2024: 24.6×

Eaton Corporation EV/EBITDA 2023: 20.8×

Eaton Corporation EV/EBITDA 2022: 17.9×

Eaton Corporation EV/EBITDA 2021: 19.4×

Sector peers by EV/EBITDA — chart

Sector peers by EV/EBITDA — table

Frequently asked questions

Eaton Corporation (ETN) Key Financials