Intrinsic value of Eaton Corporation, PLC - ETN

Previous Close

$81.21

  Intrinsic Value

$81.46

stock screener

  Rating & Target

hold

0%

Previous close

$81.21

 
Intrinsic value

$81.46

 
Up/down potential

0%

 
Rating

hold

We calculate the intrinsic value of ETN stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 0001), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 34.4

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
   2
   3
   4
   5
   6
   7
   8
   9
   10
   11
   12
   13
   14
   15
   16
   17
   18
   19
   20
   21
   22
   23
   24
   25
   26
   27
   28
   29
   30
   31

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  4.70
  4.73
  4.76
  4.78
  4.80
  4.82
  4.84
  4.86
  4.87
  4.88
  4.90
  4.91
  4.92
  4.92
  4.93
  4.94
  4.94
  4.95
  4.95
  4.96
  4.96
  4.97
  4.97
  4.97
  4.98
  4.98
  4.98
  4.98
  4.98
  4.99
Revenue, $m
  22,625
  23,695
  24,822
  26,009
  27,258
  28,573
  29,956
  31,410
  32,940
  34,549
  36,240
  38,018
  39,887
  41,851
  43,915
  46,083
  48,362
  50,756
  53,271
  55,913
  58,688
  61,603
  64,665
  67,881
  71,259
  74,807
  78,533
  82,445
  86,555
  90,870
Variable operating expenses, $m
  19,666
  20,510
  21,399
  22,336
  23,321
  24,358
  25,449
  26,597
  27,804
  29,073
  28,590
  29,993
  31,467
  33,016
  34,644
  36,355
  38,153
  40,041
  42,025
  44,109
  46,299
  48,599
  51,014
  53,551
  56,216
  59,015
  61,954
  65,041
  68,283
  71,687
Fixed operating expenses, $m
  55
  56
  58
  59
  60
  62
  63
  64
  66
  67
  69
  70
  72
  73
  75
  76
  78
  80
  82
  83
  85
  87
  89
  91
  93
  95
  97
  99
  102
  104
Total operating expenses, $m
  19,721
  20,566
  21,457
  22,395
  23,381
  24,420
  25,512
  26,661
  27,870
  29,140
  28,659
  30,063
  31,539
  33,089
  34,719
  36,431
  38,231
  40,121
  42,107
  44,192
  46,384
  48,686
  51,103
  53,642
  56,309
  59,110
  62,051
  65,140
  68,385
  71,791
Operating income, $m
  2,904
  3,128
  3,365
  3,614
  3,877
  4,153
  4,443
  4,749
  5,071
  5,409
  7,582
  7,956
  8,349
  8,762
  9,196
  9,652
  10,131
  10,635
  11,164
  11,720
  12,304
  12,918
  13,562
  14,239
  14,950
  15,697
  16,481
  17,305
  18,171
  19,079
EBITDA, $m
  5,269
  5,520
  5,784
  6,062
  6,355
  6,663
  6,987
  7,328
  7,687
  8,064
  8,460
  8,877
  9,315
  9,776
  10,260
  10,769
  11,303
  11,865
  12,455
  13,075
  13,727
  14,411
  15,129
  15,884
  16,677
  17,510
  18,385
  19,304
  20,269
  21,282
Interest expense (income), $m
  0
  406
  444
  484
  527
  571
  618
  667
  719
  773
  831
  891
  954
  1,021
  1,091
  1,164
  1,242
  1,323
  1,408
  1,498
  1,592
  1,691
  1,795
  1,904
  2,019
  2,139
  2,266
  2,398
  2,538
  2,685
  2,838
Earnings before tax, $m
  2,497
  2,684
  2,881
  3,088
  3,306
  3,535
  3,776
  4,030
  4,297
  4,578
  6,691
  7,002
  7,328
  7,671
  8,031
  8,410
  8,808
  9,227
  9,666
  10,128
  10,613
  11,123
  11,658
  12,220
  12,811
  13,431
  14,083
  14,767
  15,486
  16,241
Tax expense, $m
  674
  725
  778
  834
  893
  954
  1,020
  1,088
  1,160
  1,236
  1,807
  1,890
  1,979
  2,071
  2,168
  2,271
  2,378
  2,491
  2,610
  2,735
  2,866
  3,003
  3,148
  3,299
  3,459
  3,626
  3,802
  3,987
  4,181
  4,385
Net income, $m
  1,823
  1,959
  2,103
  2,254
  2,413
  2,581
  2,757
  2,942
  3,137
  3,342
  4,884
  5,111
  5,349
  5,600
  5,863
  6,140
  6,430
  6,736
  7,056
  7,393
  7,748
  8,120
  8,510
  8,921
  9,352
  9,805
  10,280
  10,780
  11,305
  11,856

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  32,553
  34,093
  35,715
  37,423
  39,220
  41,112
  43,102
  45,195
  47,396
  49,711
  52,145
  54,703
  57,392
  60,217
  63,187
  66,307
  69,586
  73,030
  76,649
  80,450
  84,443
  88,638
  93,043
  97,671
  102,531
  107,636
  112,996
  118,627
  124,539
  130,749
Adjusted assets (=assets-cash), $m
  32,553
  34,093
  35,715
  37,423
  39,220
  41,112
  43,102
  45,195
  47,396
  49,711
  52,145
  54,703
  57,392
  60,217
  63,187
  66,307
  69,586
  73,030
  76,649
  80,450
  84,443
  88,638
  93,043
  97,671
  102,531
  107,636
  112,996
  118,627
  124,539
  130,749
Revenue / Adjusted assets
  0.695
  0.695
  0.695
  0.695
  0.695
  0.695
  0.695
  0.695
  0.695
  0.695
  0.695
  0.695
  0.695
  0.695
  0.695
  0.695
  0.695
  0.695
  0.695
  0.695
  0.695
  0.695
  0.695
  0.695
  0.695
  0.695
  0.695
  0.695
  0.695
  0.695
Average production assets, $m
  13,326
  13,956
  14,620
  15,319
  16,055
  16,829
  17,644
  18,501
  19,402
  20,349
  21,346
  22,393
  23,494
  24,650
  25,866
  27,143
  28,485
  29,895
  31,377
  32,933
  34,567
  36,284
  38,088
  39,982
  41,972
  44,061
  46,256
  48,560
  50,981
  53,523
Working capital, $m
  2,873
  3,009
  3,152
  3,303
  3,462
  3,629
  3,804
  3,989
  4,183
  4,388
  4,603
  4,828
  5,066
  5,315
  5,577
  5,853
  6,142
  6,446
  6,765
  7,101
  7,453
  7,824
  8,212
  8,621
  9,050
  9,500
  9,974
  10,471
  10,992
  11,541
Total debt, $m
  8,227
  8,969
  9,751
  10,574
  11,440
  12,352
  13,311
  14,320
  15,381
  16,497
  17,670
  18,903
  20,199
  21,561
  22,992
  24,496
  26,076
  27,737
  29,481
  31,313
  33,238
  35,259
  37,383
  39,613
  41,956
  44,416
  47,000
  49,714
  52,564
  55,557
Total liabilities, $m
  15,691
  16,433
  17,215
  18,038
  18,904
  19,816
  20,775
  21,784
  22,845
  23,961
  25,134
  26,367
  27,663
  29,025
  30,456
  31,960
  33,540
  35,201
  36,945
  38,777
  40,702
  42,723
  44,847
  47,077
  49,420
  51,880
  54,464
  57,178
  60,028
  63,021
Total equity, $m
  16,863
  17,660
  18,500
  19,385
  20,316
  21,296
  22,327
  23,411
  24,551
  25,750
  27,011
  28,336
  29,729
  31,193
  32,731
  34,347
  36,045
  37,830
  39,704
  41,673
  43,742
  45,914
  48,197
  50,594
  53,111
  55,755
  58,532
  61,449
  64,511
  67,728
Total liabilities and equity, $m
  32,554
  34,093
  35,715
  37,423
  39,220
  41,112
  43,102
  45,195
  47,396
  49,711
  52,145
  54,703
  57,392
  60,218
  63,187
  66,307
  69,585
  73,031
  76,649
  80,450
  84,444
  88,637
  93,044
  97,671
  102,531
  107,635
  112,996
  118,627
  124,539
  130,749
Debt-to-equity ratio
  0.490
  0.510
  0.530
  0.550
  0.560
  0.580
  0.600
  0.610
  0.630
  0.640
  0.650
  0.670
  0.680
  0.690
  0.700
  0.710
  0.720
  0.730
  0.740
  0.750
  0.760
  0.770
  0.780
  0.780
  0.790
  0.800
  0.800
  0.810
  0.810
  0.820
Adjusted equity ratio
  0.518
  0.518
  0.518
  0.518
  0.518
  0.518
  0.518
  0.518
  0.518
  0.518
  0.518
  0.518
  0.518
  0.518
  0.518
  0.518
  0.518
  0.518
  0.518
  0.518
  0.518
  0.518
  0.518
  0.518
  0.518
  0.518
  0.518
  0.518
  0.518
  0.518

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  1,823
  1,959
  2,103
  2,254
  2,413
  2,581
  2,757
  2,942
  3,137
  3,342
  4,884
  5,111
  5,349
  5,600
  5,863
  6,140
  6,430
  6,736
  7,056
  7,393
  7,748
  8,120
  8,510
  8,921
  9,352
  9,805
  10,280
  10,780
  11,305
  11,856
Depreciation, amort., depletion, $m
  2,366
  2,392
  2,419
  2,448
  2,478
  2,510
  2,543
  2,579
  2,616
  2,655
  878
  922
  967
  1,014
  1,064
  1,117
  1,172
  1,230
  1,291
  1,355
  1,423
  1,493
  1,567
  1,645
  1,727
  1,813
  1,904
  1,998
  2,098
  2,203
Funds from operations, $m
  4,189
  4,351
  4,522
  4,702
  4,891
  5,091
  5,300
  5,521
  5,753
  5,997
  5,763
  6,033
  6,316
  6,614
  6,927
  7,257
  7,602
  7,966
  8,348
  8,749
  9,170
  9,613
  10,078
  10,566
  11,079
  11,618
  12,184
  12,778
  13,403
  14,058
Change in working capital, $m
  129
  136
  143
  151
  159
  167
  176
  185
  194
  204
  215
  226
  237
  249
  262
  275
  289
  304
  319
  336
  352
  370
  389
  408
  429
  451
  473
  497
  522
  548
Cash from operations, $m
  4,060
  4,215
  4,379
  4,551
  4,733
  4,924
  5,125
  5,336
  5,559
  5,793
  5,548
  5,807
  6,079
  6,365
  6,665
  6,981
  7,313
  7,662
  8,028
  8,413
  8,818
  9,243
  9,689
  10,158
  10,650
  11,167
  11,711
  12,281
  12,881
  13,510
Maintenance CAPEX, $m
  -524
  -548
  -574
  -602
  -630
  -661
  -693
  -726
  -761
  -798
  -837
  -878
  -922
  -967
  -1,014
  -1,064
  -1,117
  -1,172
  -1,230
  -1,291
  -1,355
  -1,423
  -1,493
  -1,567
  -1,645
  -1,727
  -1,813
  -1,904
  -1,998
  -2,098
New CAPEX, $m
  -590
  -630
  -664
  -699
  -736
  -774
  -815
  -857
  -901
  -948
  -996
  -1,047
  -1,101
  -1,157
  -1,216
  -1,277
  -1,342
  -1,410
  -1,481
  -1,556
  -1,635
  -1,717
  -1,803
  -1,894
  -1,990
  -2,090
  -2,195
  -2,305
  -2,420
  -2,542
Cash from investing activities, $m
  -1,114
  -1,178
  -1,238
  -1,301
  -1,366
  -1,435
  -1,508
  -1,583
  -1,662
  -1,746
  -1,833
  -1,925
  -2,023
  -2,124
  -2,230
  -2,341
  -2,459
  -2,582
  -2,711
  -2,847
  -2,990
  -3,140
  -3,296
  -3,461
  -3,635
  -3,817
  -4,008
  -4,209
  -4,418
  -4,640
Free cash flow, $m
  2,946
  3,036
  3,141
  3,250
  3,366
  3,489
  3,617
  3,753
  3,896
  4,047
  3,714
  3,881
  4,057
  4,241
  4,435
  4,639
  4,854
  5,080
  5,317
  5,566
  5,828
  6,103
  6,392
  6,696
  7,015
  7,351
  7,703
  8,073
  8,462
  8,871
Issuance/(repayment) of debt, $m
  706
  742
  782
  823
  866
  912
  959
  1,009
  1,061
  1,116
  1,173
  1,233
  1,296
  1,362
  1,431
  1,504
  1,580
  1,660
  1,744
  1,832
  1,925
  2,022
  2,124
  2,230
  2,343
  2,460
  2,584
  2,714
  2,850
  2,993
Issuance/(repurchase) of shares, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  706
  742
  782
  823
  866
  912
  959
  1,009
  1,061
  1,116
  1,173
  1,233
  1,296
  1,362
  1,431
  1,504
  1,580
  1,660
  1,744
  1,832
  1,925
  2,022
  2,124
  2,230
  2,343
  2,460
  2,584
  2,714
  2,850
  2,993
Total cash flow (excl. dividends), $m
  3,652
  3,779
  3,922
  4,074
  4,233
  4,400
  4,577
  4,762
  4,957
  5,162
  4,887
  5,114
  5,353
  5,603
  5,867
  6,143
  6,434
  6,740
  7,061
  7,398
  7,752
  8,125
  8,516
  8,926
  9,358
  9,811
  10,287
  10,787
  11,312
  11,863
Retained Cash Flow (-), $m
  -756
  -798
  -840
  -885
  -931
  -980
  -1,031
  -1,084
  -1,140
  -1,199
  -1,261
  -1,325
  -1,393
  -1,464
  -1,538
  -1,616
  -1,698
  -1,784
  -1,874
  -1,969
  -2,068
  -2,173
  -2,282
  -2,397
  -2,518
  -2,644
  -2,777
  -2,916
  -3,063
  -3,216
Prev. year cash balance distribution, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
  2,896
  2,981
  3,082
  3,189
  3,302
  3,421
  3,546
  3,678
  3,817
  3,963
  3,627
  3,789
  3,960
  4,139
  4,328
  4,527
  4,736
  4,956
  5,186
  5,429
  5,684
  5,952
  6,234
  6,529
  6,840
  7,167
  7,510
  7,871
  8,249
  8,647
Discount rate, %
  5.20
  5.46
  5.73
  6.02
  6.32
  6.64
  6.97
  7.32
  7.68
  8.07
  8.47
  8.89
  9.34
  9.81
  10.30
  10.81
  11.35
  11.92
  12.51
  13.14
  13.80
  14.49
  15.21
  15.97
  16.77
  17.61
  18.49
  19.41
  20.38
  21.40
PV of cash for distribution, $m
  2,753
  2,680
  2,607
  2,524
  2,430
  2,326
  2,213
  2,091
  1,961
  1,824
  1,483
  1,363
  1,241
  1,117
  995
  876
  761
  653
  552
  460
  377
  303
  240
  186
  142
  106
  77
  55
  38
  26
Current shareholders' claim on cash, %
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0

Eaton Corporation plc operates as a power management company worldwide. Its Electrical Products segment offers electrical and industrial components, residential products, single phase power quality products, emergency lighting and fire detection products, wiring devices, structural support systems, and circuit protection and lighting products. The company’s Electrical Systems and Services segment provides power distribution and assemblies, three phase power quality products, hazardous duty electrical equipment, explosion-proof instrumentation, utility power distribution, power reliability equipment, and services. Its Hydraulics segment offers various power products, controls and sensing products, fluid conveyance products, filtration systems solutions, industrial drum and disc brakes, and golf grips. The company’s Aerospace segment provides hydraulic power generation systems, controls and sensing products, fluid conveyance products, and fuel systems for commercial and military use. Its Vehicle segment designs, manufactures, markets, and supplies drivetrain, powertrain systems, and critical components, including transmissions, clutches, hybrid power systems, superchargers, engine valves and valve actuation systems, cylinder heads, locking and limited slip differentials, transmission controls, fuel vapor components, fluid connectors, and conveyance products. The company serves industrial, institutional, governmental, utility, commercial, residential, information technology, renewable energy, marine, agriculture, oil and gas, construction, mining, forestry, material handling, truck and bus, machine tools, molding, primary metals, and power generation markets, as well as original equipment manufacturers and aftermarket customers of heavy, medium, and light-duty trucks, SUVs, CUVs, passenger cars, and agricultural equipment. Eaton Corporation plc was founded in 1916 and is based in Dublin, Ireland.

FINANCIAL RATIOS  of  Eaton Corporation, PLC (ETN)

Valuation Ratios
P/E Ratio 0
Price to Sales 0
Price to Book 0
Price to Tangible Book
Price to Cash Flow 0
Price to Free Cash Flow 0
Growth Rates
Sales Growth Rate -100%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate NaN%
Cap. Spend. - 3 Yr. Gr. Rate NaN%
Financial Strength
Quick Ratio NaN
Current Ratio NaN
LT Debt to Equity 0%
Total Debt to Equity 0%
Interest Coverage 0
Management Effectiveness
Return On Assets 0%
Ret/ On Assets - 3 Yr. Avg. 0%
Return On Total Capital 0%
Ret/ On T. Cap. - 3 Yr. Avg. 0%
Return On Equity 0%
Return On Equity - 3 Yr. Avg. 0%
Asset Turnover 0
Profitability Ratios
Gross Margin 0%
Gross Margin - 3 Yr. Avg. 0%
EBITDA Margin 0%
EBITDA Margin - 3 Yr. Avg. 0%
Operating Margin 0%
Oper. Margin - 3 Yr. Avg. 0%
Pre-Tax Margin 0%
Pre-Tax Margin - 3 Yr. Avg. 0%
Net Profit Margin 0%
Net Profit Margin - 3 Yr. Avg. 0%
Effective Tax Rate 0%
Eff/ Tax Rate - 3 Yr. Avg. 0%
Payout Ratio 0%

ETN stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the ETN stock intrinsic value calculation we used $21609 million for the last fiscal year's total revenue generated by Eaton Corporation, PLC. The default revenue input number comes from 0001 income statement of Eaton Corporation, PLC. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our ETN stock valuation model: a) initial revenue growth rate of 4.7% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 5.2%, whose default value for ETN is calculated based on our internal credit rating of Eaton Corporation, PLC, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Eaton Corporation, PLC.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of ETN stock the variable cost ratio is equal to 87.3%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $54 million in the base year in the intrinsic value calculation for ETN stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 5.4% for Eaton Corporation, PLC.

Corporate tax rate of 27% is the nominal tax rate for Eaton Corporation, PLC. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the ETN stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for ETN are equal to 58.9%.

Life of production assets of 24.3 years is the average useful life of capital assets used in Eaton Corporation, PLC operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for ETN is equal to 12.7%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $16107 million for Eaton Corporation, PLC - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 423.554 million for Eaton Corporation, PLC is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Eaton Corporation, PLC at the current share price and the inputted number of shares is $34.4 billion.

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