Eaton Corp Plc (ETN) is overvalued and Parker-Hannifin Corp (PH) is overvalued.
Both trade above our estimate of their intrinsic value. PH is the closer of the two: -88%, 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 10.2% (average of 3 methods) values the shares at $514.00; the price of $964.85 is 88% above that value, and 72% of that value comes from beyond year five.
Leak Score 73/100 on 10 of 12 signals
| Metric | ETN | PH |
|---|---|---|
| Verdict | Overvalued | Overvalued |
| Price | $442.49 | $964.85 |
| Intrinsic value | $169.15 | $514.00 |
| Margin of safety | -162% | -88% |
| Leak Score | 27/100 (3/12) | 73/100 (10/12) |
| Market cap | $171.9B | $121.7B |
| Revenue growth, 5 years | 9.0% | 8.4% |
| Operating margin | 19.4% | 21.9% |
| Net margin | 12.8% | 17.0% |
| Return on equity | 19.7% | 25.1% |
| Debt to equity | 1.05 | 0.57 |
| P/E | 45.0x | 33.9x |
| Forward P/E | 27.5x | 24.9x |
| P/B | 8.5x | 7.9x |
| Dividend yield | 1.0% | 0.8% |