Discounted Cash Flow

Eaton Corp. Plc.

ETN · Based on 10 years of SEC filings

Average annual growth rates

Metric 10-Year 5-Year 3-Year
Sales
Free Cash Flow
Average (FCF & NI)
Net Income

Average annual growth is the mean year-over-year change across each period.

Endpoint CAGR (better for long term trend)

Metric 10-Year 5-Year 3-Year
Sales
Free Cash Flow
Average (FCF & NI)
Net Income

Endpoint CAGR is the compound annual rate from the first to last year in each period.

Projections use average year-over-year growth. Change this in Settings.

Projected growth rate

Free cash flow growth
10-year: — 5-year: — 3-year: —
Averaged growth (FCF & NI)
10-year: — 5-year: — 3-year: —
Net income growth
10-year: — 5-year: — 3-year: —
Sales growth (not added to calculations)
10-year: — 5-year: — 3-year: —

Click a greyed-out slider to switch metrics. Slide between the 10-year, 5-year, and 3-year historic growth rates for FCF, net income, or their average.

%
%

Historical inputs (10 fiscal years)

YEAR Sales Net Income Free Cash Flow Net Margin EPS (diluted)
2016 $19.7b $1.9b $2.6b 9.7% $4.22
2017 $20.4b (3.3%) $3.0b (55.3%) $2.7b (4.5%) 14.6% (50.3%) $6.71 (59.0%)
2018 $21.6b (5.9%) $2.1b (-28.1%) $2.7b (-0.3%) 9.9% (-32.1%) $4.93 (-26.5%)
2019 $21.4b (-1.0%) $2.2b (3.1%) $2.9b (7.8%) 10.3% (4.1%) $5.28 (7.1%)
2020 $17.9b (-16.5%) $1.4b (-36.2%) $2.6b (-10.8%) 7.9% (-23.6%) $3.51 (-33.5%)
2021 $19.6b (9.9%) $2.1b (52.1%) $2.0b (-20.2%) 10.9% (38.3%) $5.38 (53.3%)
2022 $20.8b (5.7%) $2.5b (14.8%) $2.5b (22.2%) 11.9% (8.6%) $6.17 (14.7%)
2023 $23.2b (11.8%) $3.2b (30.7%) $3.6b (42.8%) 13.9% (16.9%) $8.06 (30.6%)
2024 $24.9b (7.3%) $3.8b (17.9%) $4.3b (19.7%) 15.3% (9.9%) $9.54 (18.4%)
2025 $27.4b (10.3%) $4.1b (7.7%) $4.5b (4.7%) 14.9% (-2.4%) $10.48 (9.9%)

Base FCF: (latest fiscal year)

Discount rate: %

Terminal growth:

Projection period: years

Alt A decline yrs:

Alt B total yrs:

Values abbreviated: b = billions, m = millions, k = thousands.

Projected cash flows

Year Projected cash flow Discount Factor Present Value

PV of projected FCF:

Terminal FCF:

Terminal value:

PV of terminal value:

Enterprise value (DCF):

DCF price per share:

Current price:

Alternative DCF Models

Model Fair Value Upside PV(FCFs) PV(Terminal) Total Years
Standard (10yr→TV) 10 + TV
Alt A (Gradual Decline)
Alt B (30yr Hard Stop) N/A

This is a simplified DCF model for illustration. It uses reported free cash flow, a single growth assumption, fixed WACC, and a Gordon Growth terminal value. It is not investment advice.

+ 10YR Financials Balance Sheet (10YR) Cash Flow (10YR) DCF Model