Discounted Cash Flow (DCF) Analysis Levered

Eaton Corporation plc (ETN)

$133.29

-2.79 (-2.05%)

All numbers are in Millions, Currency in USD

Stock DCF: 74.17 | 133.29 | overvalue

Free Cash Flow

Year A/P	2017 Actual	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Projected	2023 Projected	2024 Projected	2025 Projected	2026 Projected
Revenue	20,404	21,609	21,390	17,858	19,628	19,544.16	19,460.67	19,377.55	19,294.77	19,212.35
Revenue (%)
Operating Cash Flow	2,666	2,658	3,451	2,944	2,163	2,697.32	2,685.80	2,674.33	2,662.90	2,651.53
Operating Cash Flow (%)
Capital Expenditure	-520	-565	-587	-389	-575	-508.74	-506.57	-504.41	-502.25	-500.11
Capital Expenditure (%)
Free Cash Flow	2,146	2,093	2,864	2,555	1,588	2,188.58	2,179.23	2,169.92	2,160.65	2,151.42

Weighted Average Cost Of Capital

Share price	$ 133.29
Beta	1.153
Diluted Shares Outstanding	402.10
Cost of Debt
Tax Rate	25.97
After-tax Cost of Debt	1.20%
Risk-Free Rate
Market Risk Premium
Cost of Equity	8.235
Total Debt	8,916
Total Equity	53,595.91
Total Capital	62,511.91
Debt Weighting	14.26
Equity Weighting	85.74
Wacc

Build Up Free Cash Flow

Year A/P	2017 Actual	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Projected	2023 Projected	2024 Projected	2025 Projected	2026 Projected
Revenue	20,404	21,609	21,390	17,858	19,628	19,544.16	19,460.67	19,377.55	19,294.77	19,212.35
Operating Cash Flow	2,666	2,658	3,451	2,944	2,163	2,697.32	2,685.80	2,674.33	2,662.90	2,651.53
Capital Expenditure	-520	-565	-587	-389	-575	-508.74	-506.57	-504.41	-502.25	-500.11
Free Cash Flow	2,146	2,093	2,864	2,555	1,588	2,188.58	2,179.23	2,169.92	2,160.65	2,151.42
WACC
PV LFCF						1,439.67	1,336.87	1,241.40	1,152.76	1,070.44
SUM PV LFCF										8,848.01

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	7.23
Free cash flow (t + 1)	2,194.45
Terminal Value	41,958.87
Present Value of Terminal Value	29,596.63

Intrinsic Value

Enterprise Value	38,444.64
Net Debt	8,619
Equity Value	29,825.64
Shares Outstanding	402.10
Equity Value Per Share	74.17