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EMR Valuation

Emerson Electric Co
$
133.930
-6.64(-4.724%)1D
  • Overview
  • Forecast
  • Valuation
  • Earnings

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 Overvalued zone, suggesting that its current forward PE ratio of 22.63 is considered Overvalued compared with the five-year average of 19.35. The fair price of Emerson Electric Co (EMR) is between 117.34 to 138.94 according to relative valuation methord. Compared to the current price of 140.57 USD , Emerson Electric Co is Overvalued By 1.17%.
Relative Value
Fair Zone
117.34-138.94
Current Price:140.57
1.17%
Overvalued
20.90
PE
1Y
3Y
5Y
Trailing
Forward
17.53
EV/EBITDA
Emerson Electric Co. (EMR) has a current EV/EBITDA of 17.53. The 5-year average EV/EBITDA is 14.38. The thresholds are as follows: Strongly Undervalued below 10.28, Undervalued between 10.28 and 12.33, Fairly Valued between 16.43 and 12.33, Overvalued between 16.43 and 18.49, and Strongly Overvalued above 18.49. The current Forward EV/EBITDA of 17.53 falls within the Overvalued range.
25.14
EV/EBIT
Emerson Electric Co. (EMR) has a current EV/EBIT of 25.14. The 5-year average EV/EBIT is 19.64. The thresholds are as follows: Strongly Undervalued below 12.41, Undervalued between 12.41 and 16.03, Fairly Valued between 23.25 and 16.03, Overvalued between 23.25 and 26.87, and Strongly Overvalued above 26.87. The current Forward EV/EBIT of 25.14 falls within the Overvalued range.
4.25
PS
Emerson Electric Co. (EMR) has a current PS of 4.25. The 5-year average PS is 3.13. The thresholds are as follows: Strongly Undervalued below 2.17, Undervalued between 2.17 and 2.65, Fairly Valued between 3.60 and 2.65, Overvalued between 3.60 and 4.08, and Strongly Overvalued above 4.08. The current Forward PS of 4.25 falls within the Strongly Overvalued range.
19.80
P/OCF
Emerson Electric Co. (EMR) has a current P/OCF of 19.80. The 5-year average P/OCF is 16.38. The thresholds are as follows: Strongly Undervalued below 10.79, Undervalued between 10.79 and 13.58, Fairly Valued between 19.17 and 13.58, Overvalued between 19.17 and 21.97, and Strongly Overvalued above 21.97. The current Forward P/OCF of 19.80 falls within the Overvalued range.
21.74
P/FCF
Emerson Electric Co. (EMR) has a current P/FCF of 21.74. The 5-year average P/FCF is 19.28. The thresholds are as follows: Strongly Undervalued below 12.89, Undervalued between 12.89 and 16.09, Fairly Valued between 22.48 and 16.09, Overvalued between 22.48 and 25.67, and Strongly Overvalued above 25.67. The current Forward P/FCF of 21.74 falls within the Historic Trend Line -Fairly Valued range.
Emerson Electric Co (EMR) has a current Price-to-Book (P/B) ratio of 4.11. Compared to its 3-year average P/B ratio of 3.53 , the current P/B ratio is approximately 16.37% higher. Relative to its 5-year average P/B ratio of 4.37, the current P/B ratio is about -5.93% higher. Emerson Electric Co (EMR) has a Forward Free Cash Flow (FCF) yield of approximately 3.44%. Compared to its 3-year average FCF yield of 3.26%, the current FCF yield is approximately 5.70% lower. Relative to its 5-year average FCF yield of 4.13% , the current FCF yield is about -16.69% lower.
3.79
P/B
Median3y
3.53
Median5y
4.37
3.49
FCF Yield
Median3y
3.26
Median5y
4.13

Competitors Valuation Multiple

The average P/S ratio for EMR's competitors is 4.85, providing a benchmark for relative valuation. Emerson Electric Co Corp (EMR) exhibits a P/S ratio of 4.25, which is -12.48% above the industry average. Given its robust revenue growth of 1.28%, this premium appears unsustainable.

Performance Decomposition

1Y
3Y
5Y
Market capitalization of EMR increased by 27.08% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 26.55 to 37.54.
The secondary factor is the Revenue Growth, contributed 1.28%to the performance.
Overall, the performance of EMR in the past 1 year is driven by P/E Change. Which is more unsustainable.
1.28%
4.38B → 4.43B
Revenue Growth
+
-15.58%
11.49 → 9.70
Margin Expansion
+
41.38%
26.55 → 37.54
P/E Change
=
27.08%
105.39 → 133.93
Mkt Cap Growth

FAQ

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Is Emerson Electric Co (EMR) currently overvalued or undervalued?

Emerson Electric Co (EMR) is now in the Overvalued zone, suggesting that its current forward PE ratio of 22.63 is considered Overvalued compared with the five-year average of 19.35. The fair price of Emerson Electric Co (EMR) is between 117.34 to 138.94 according to relative valuation methord. Compared to the current price of 140.57 USD , Emerson Electric Co is Overvalued By 1.17% .
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What is Emerson Electric Co (EMR) fair value?

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How does EMR's valuation metrics compare to the industry average?

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What is the current P/B ratio for Emerson Electric Co (EMR) as of Aug 07 2025?

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What is the current FCF Yield for Emerson Electric Co (EMR) as of Aug 07 2025?

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What is the current Forward P/E ratio for Emerson Electric Co (EMR) as of Aug 07 2025?

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What is the current Forward P/S ratio for Emerson Electric Co (EMR) as of Aug 07 2025?