EMR Relative Valuation
EMR's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, EMR is overvalued; if below, it's undervalued.
Historical Valuation
Emerson Electric Co (EMR) is now in the Fair zone, suggesting that its current forward PE ratio of 20.86 is considered Fairly compared with the five-year average of 19.48. The fair price of Emerson Electric Co (EMR) is between 126.60 to 148.76 according to relative valuation methord.
Relative Value
Fair Zone
126.60-148.76
Current Price：134.89
Fair
21.13
PE
1Y
3Y
5Y
Trailing
Forward
16.11
EV/EBITDA
Emerson Electric Co. (EMR) has a current EV/EBITDA of 16.11. The 5-year average EV/EBITDA is 14.66. The thresholds are as follows: Strongly Undervalued below 10.77, Undervalued between 10.77 and 12.71, Fairly Valued between 16.60 and 12.71, Overvalued between 16.60 and 18.55, and Strongly Overvalued above 18.55. The current Forward EV/EBITDA of 16.11 falls within the Historic Trend Line -Fairly Valued range.
22.81
EV/EBIT
Emerson Electric Co. (EMR) has a current EV/EBIT of 22.81. The 5-year average EV/EBIT is 20.07. The thresholds are as follows: Strongly Undervalued below 13.06, Undervalued between 13.06 and 16.56, Fairly Valued between 23.57 and 16.56, Overvalued between 23.57 and 27.07, and Strongly Overvalued above 27.07. The current Forward EV/EBIT of 22.81 falls within the Historic Trend Line -Fairly Valued range.
4.00
PS
Emerson Electric Co. (EMR) has a current PS of 4.00. The 5-year average PS is 3.23. The thresholds are as follows: Strongly Undervalued below 2.30, Undervalued between 2.30 and 2.77, Fairly Valued between 3.70 and 2.77, Overvalued between 3.70 and 4.16, and Strongly Overvalued above 4.16. The current Forward PS of 4.00 falls within the Overvalued range.
18.95
P/OCF
Emerson Electric Co. (EMR) has a current P/OCF of 18.95. The 5-year average P/OCF is 16.80. The thresholds are as follows: Strongly Undervalued below 11.57, Undervalued between 11.57 and 14.18, Fairly Valued between 19.41 and 14.18, Overvalued between 19.41 and 22.02, and Strongly Overvalued above 22.02. The current Forward P/OCF of 18.95 falls within the Historic Trend Line -Fairly Valued range.
21.39
P/FCF
Emerson Electric Co. (EMR) has a current P/FCF of 21.39. The 5-year average P/FCF is 19.60. The thresholds are as follows: Strongly Undervalued below 13.60, Undervalued between 13.60 and 16.60, Fairly Valued between 22.61 and 16.60, Overvalued between 22.61 and 25.61, and Strongly Overvalued above 25.61. The current Forward P/FCF of 21.39 falls within the Historic Trend Line -Fairly Valued range.
Emerson Electric Co (EMR) has a current Price-to-Book (P/B) ratio of 3.74. Compared to its 3-year average P/B ratio of 3.39 , the current P/B ratio is approximately 10.38% higher. Relative to its 5-year average P/B ratio of 4.27, the current P/B ratio is about -12.27% higher. Emerson Electric Co (EMR) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 3.13%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 3.97% , the current FCF yield is about -100.00% lower.
3.79
P/B
Median3y
3.39
Median5y
4.27
3.52
FCF Yield
Median3y
3.13
Median5y
3.97
Competitors Valuation Multiple
The average P/S ratio for EMR's competitors is , providing a benchmark for relative valuation. Emerson Electric Co Corp (EMR) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of 5.11%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of EMR increased by 10.26% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 11.47 to 13.10.
The secondary factor is the Revenue Growth, contributed 5.11%to the performance.
Overall, the performance of EMR in the past 1 year is driven by Margin Expansion. Which is more sustainable.
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FAQ
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