Eaton Corp Plc (ETN) is overvalued and Illinois Tool Works Inc (ITW) is overvalued.
Both trade above our estimate of their intrinsic value. ITW is the closer of the two: -103%, against -162% for ETN.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 9.9% (average of 3 methods) values the shares at $169.15; the price of $442.49 is 162% above that value, and 73% of that value comes from beyond year five.
Leak Score 27/100 on 3 of 12 signals
Discounting its cash flows at 9.2% (average of 3 methods) values the shares at $133.46; the price of $270.47 is 103% above that value, and 75% of that value comes from beyond year five.
Leak Score 62/100 on 10 of 12 signals
| Metric | ETN | ITW |
|---|---|---|
| Verdict | Overvalued | Overvalued |
| Price | $442.49 | $270.47 |
| Intrinsic value | $169.15 | $133.46 |
| Margin of safety | -162% | -103% |
| Leak Score | 27/100 (3/12) | 62/100 (10/12) |
| Market cap | $171.9B | $77.0B |
| Revenue growth, 5 years | 9.0% | 5.0% |
| Operating margin | 19.4% | 26.5% |
| Net margin | 12.8% | 19.4% |
| Return on equity | 19.7% | 104.7% |
| Debt to equity | 1.05 | 3.35 |
| P/E | 45.0x | 24.5x |
| Forward P/E | 27.5x | 21.9x |
| P/B | 8.5x | 26.6x |
| Dividend yield | 1.0% | 2.4% |