Industrial conglomerate Tyco reported strong first-quarter earnings this morning, as the turnaround continues from the mistakes and abuses of the Dennis Kozlowski era.

Revenue rose 9% year over year to $9.7 billion, with every segment posting revenue increases (though foreign exchange provided an overall 7% boost). Operating income jumped 18%, and free cash flow moved up a dandy 23%. In addition, the company paid down $2 billion of its more than $18 billion in debt.

The stock price is up about 70% over the past year, but many feel it is still undervalued as the market takes off points for a scandalous past and that heavy debt load. To get a quick look at its valuation, I sorted out six other large companies classified as "conglomerates" and compared their metrics to Tyco's.

It's interesting that all of the long-term growth estimates are in the same 10% to 13% ballpark, meaning the multiples compare fairly well without adjustments:

Company P/E ratio P/FCF ratio P/Sales ratio Est. 5-yr. EPS growth
Emerson El. (NYSE:EMR) 26.5 40.7 1.9 10%
Fortune Brands (NYSE:FO) 18.2 N/A 1.7 11.7%
General Electric (NYSE:GE) 21.7 28.0 2.5 9.7%
Siemens AG (NYSE:SI) 22.3 26.4 0.8 12%
3M (NYSE:MMM) 26.2 30.2 3.4 11.4%
United Tech. (NYSE:UTX) 20.4 N/A 1.5 12.3%
Tyco (NYSE:TYC) 53.5 15.6 1.4 12.8%

Tyco's P/E ratio is certainly higher than any of the others, but restructuring and non-cash charges have skewed it. As usual, it's more useful to look at the price-to-free cash flow (P/FCF) ratio. There you see the company measures up quite well, with investors assigning it a much lower multiple compared to the rest.

As Tyco continues to execute well, distance itself from Kozlowski, and pay down debt, perhaps Mr. Market will begin rewarding it with a P/FCF multiple more in line with its peers.