Discounted Cash Flow (DCF) Analysis Levered

Eaton Corporation plc (ETN)

$210.735

+0.49 (+0.24%)

All numbers are in Millions, Currency in USD

Stock DCF: 51.22 | 210.735 | overvalue

Free Cash Flow

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Revenue	21,609	21,390	17,858	19,628	20,752	20,654.06	20,556.58	20,459.56	20,363	20,266.90
Revenue (%)
Operating Cash Flow	2,658	3,451	2,944	2,163	2,533	2,814.97	2,801.69	2,788.47	2,775.31	2,762.21
Operating Cash Flow (%)
Capital Expenditure	-565	-587	-389	-575	-598	-551.40	-548.79	-546.20	-543.63	-541.06
Capital Expenditure (%)
Free Cash Flow	2,093	2,864	2,555	1,588	1,935	2,263.58	2,252.89	2,242.26	2,231.68	2,221.15

Weighted Average Cost Of Capital

Share price	$ 210.735
Beta	1.106
Diluted Shares Outstanding	400.80
Cost of Debt
Tax Rate	15.42
After-tax Cost of Debt	1.34%
Risk-Free Rate
Market Risk Premium
Cost of Equity	9.941
Total Debt	9,114
Total Equity	84,462.59
Total Capital	93,576.59
Debt Weighting	9.74
Equity Weighting	90.26
Wacc

Build Up Free Cash Flow

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Revenue	21,609	21,390	17,858	19,628	20,752	20,654.06	20,556.58	20,459.56	20,363	20,266.90
Operating Cash Flow	2,658	3,451	2,944	2,163	2,533	2,814.97	2,801.69	2,788.47	2,775.31	2,762.21
Capital Expenditure	-565	-587	-389	-575	-598	-551.40	-548.79	-546.20	-543.63	-541.06
Free Cash Flow	2,093	2,864	2,555	1,588	1,935	2,263.58	2,252.89	2,242.26	2,231.68	2,221.15
WACC
PV LFCF						2,074.77	1,892.74	1,726.68	1,575.19	1,436.99
SUM PV LFCF										8,706.38

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	9.10
Free cash flow (t + 1)	2,265.57
Terminal Value	31,909.44
Present Value of Terminal Value	20,644.07

Intrinsic Value

Enterprise Value	29,350.45
Net Debt	8,820
Equity Value	20,530.45
Shares Outstanding	400.80
Equity Value Per Share	51.22