Eaton Corporation

Methodology

Eaton's electrical and industrial equipment business shows moderate cyclicality tied to construction activity, aerospace production, and vehicle electrification trends. The diversified portfolio provides some cyclical offsetting across end markets. This calculation works well when normalizing for industrial cycles and accounting for growth from electrification and data center secular tailwinds.

Methodology

Eaton typically commands moderate premium PEG ratios reflecting its electrical infrastructure positioning and exposure to electrification mega-trends. The company's aerospace and vehicle businesses add growth diversification. PEG works effectively when considering long-term structural growth drivers in electrical distribution and EV charging infrastructure.

Methodology

Eaton pays a modest dividend with steady growth, making PEGY moderately more attractive than PEG for this quality industrial. The company balances dividends with strategic acquisitions to expand electrical and aerospace capabilities. Total return combines reliable dividend growth with earnings compounding from electrification secular trends.