09 / 26 · Power + grid

ETN

Eaton

4%target weight

Latest available close$428.310.4% · vs previous close

DAILY CLOSE · USD2026-10-13Yahoo Finance ↗

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Explore a date

Daily candles, not a live feed. Price series is split-adjusted; total-return mode uses provider-adjusted prices including distributions. The chart does not predict returns.

A great business. At what price?

Test earnings growth against a change in valuation. All multiples below are your assumptions — not current company fundamentals.

Illustrative price CAGR—

CAGR = (1 + EPS growth) × (exit P/E ÷ entry P/E)^(1/years) − 1. Excludes dividends, dilution beyond EPS, taxes and fees. Not a price target. Not suitable for gold, bonds or companies with negative earnings.

RESEARCH ENGINE / 1.2

What must this price deliver?

Inspect reported numbers, test your assumptions and follow the next filing. A calculation is not an approved investment case.

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NORMALIZATION / v1.0.0

Normalization workpaper

A company-specific protocol, not an approved normalized cash flow.

Reported proxy available · normalization pending

Model familySum-of-parts segment DCF

OCF − cash capex / diluted share9.08 USD

Price / reported cash proxy46.77×

Required adjustment tests

working capital
Normalize working-capital timing; customer advances are not recurring profit.
acquisitions
Build a pro-forma organic base and include the full capital paid for acquisitions.
capex split
Separate maintenance/replacement capex from expansion capex; do not assume either number.

Reported financial base

Annual period: 2025-01-01 → 2025-12-31Filed: 2026-02-26Reporting currency: USDLast source retrieval: 2026-09-18T22:00:49.022Z

Unreviewed extraction

Reported financial base
Metric	Value	Unit	Source
Revenue	27,448,000,000	USD	us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax ↗
Operating income	—	—	Missing / manual review
Net income	4,087,000,000	USD	us-gaap:NetIncomeLoss ↗
Operating cash flow	4,472,000,000	USD	us-gaap:NetCashProvidedByUsedInOperatingActivities ↗
Cash capital expenditure	919,000,000	USD	us-gaap:PaymentsToAcquirePropertyPlantAndEquipment ↗
Share-based compensation	—	—	Missing / manual review
Weighted diluted shares	391,200,000	shares	us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding ↗
Cash and equivalents	622,000,000	USD	us-gaap:CashAndCashEquivalentsAtCarryingValue ↗
Current long-term debt	—	—	Missing / manual review
Noncurrent long-term debt	9,894,000,000	USD	us-gaap:LongTermDebt ↗

OCF − cash capex (not normalized)3,553,000,000 USDNormalized owner cash: not approved

Annual figures, not trailing twelve months. No automatic currency/ADR conversion. Cash proxy excludes review of leases, debt service, SBC, acquisitions and cycle. Missing values are not zero.

Company-specific method

Segment DCF with acquisition capital included in return-on-capital calculations.

Your scenario · not our forecast

Equity-per-share DCF: do not subtract net debt again. Future dilution must already be included in cash-per-share growth. This does not measure analyst consensus. Replacement capex and sustainable terminal cash still require review.

What changed?

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FUNDAMENTAL RESEARCH · 2026-09-06

The investment case, under examination.

A dated research map, not completed valuations. The 25-company portfolio baseline is unchanged; IBM is monitored at 0% outside it. Public facts do not establish an edge: every hypothesis still needs normalized financials, price-implied expectations and independent forward tests.

Hypothesis · not a trading signal

Q2 2026 · Release date not verified · Source checked 2026-09-06

01 / What the issuer reported: Sales grew 21%, including 14% organic growth; electrical backlog grew 43% year over year.
02 / Our hypothesis — not established alpha: Electrical bottlenecks may sustain pricing, but acquisitions must not be confused with organic demand.
03 / What to measure next: Organic orders, book-to-bill, backlog conversion, margins, working capital and acquisition returns.
04 / What would challenge the thesis: Reassess if order growth slows while delivery capacity expands and price/cash conversion deteriorates.
05 / Appropriate valuation method: Segment DCF with acquisition capital included in return-on-capital calculations.
06 / Still missing: Missing: organic/acquisition bridge, transaction-adjusted debt and exact release-date verification.

No measured consensus gap or approved price target. A familiar good business can still be an expensive stock.

Read the primary source ↗

Issuer-reported figures, not an independent accounting audit. Review after the next report or material filing. These review triggers are proposed, not automatic sell rules. Weights and paper mandates are unchanged.

Why this position exists

Electrical distribution for data centers

Every AI megawatt requires switchgear, UPS, busway and protection where Eaton has pricing power.

Principal risk

Backlog normalization, construction cycles and elevated valuation.

What the daily radar monitors

01Electrical backlogPRIMARY KPI

02Data-center ordersTREND + GUIDANCE

03Price/costTHESIS TRIGGER

Decision rule

A headline never changes a weight by itself. The system verifies the primary source, tests the KPI trend and creates a proposal for the investment committee.