EMR PE Ratio & Valuation,Is EMR Overvalued

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 21.00 is considered Fairly compared with the five-year average of 19.49. The fair price of Emerson Electric Co (EMR) is between 135.83 to 159.37 according to relative valuation methord.

Relative Value

Fair Zone

135.83-159.37

Current Price：143.74

Fair

21.00

16.21

EV/EBITDA

Emerson Electric Co. (EMR) has a current EV/EBITDA of 16.21. The 5-year average EV/EBITDA is 14.72. The thresholds are as follows: Strongly Undervalued below 10.84, Undervalued between 10.84 and 12.78, Fairly Valued between 16.65 and 12.78, Overvalued between 16.65 and 18.59, and Strongly Overvalued above 18.59. The current Forward EV/EBITDA of 16.21 falls within the Historic Trend Line -Fairly Valued range.

22.91

EV/EBIT

Emerson Electric Co. (EMR) has a current EV/EBIT of 22.91. The 5-year average EV/EBIT is 20.18. The thresholds are as follows: Strongly Undervalued below 13.20, Undervalued between 13.20 and 16.69, Fairly Valued between 23.66 and 16.69, Overvalued between 23.66 and 27.15, and Strongly Overvalued above 27.15. The current Forward EV/EBIT of 22.91 falls within the Historic Trend Line -Fairly Valued range.

4.04

Emerson Electric Co. (EMR) has a current PS of 4.04. The 5-year average PS is 3.26. The thresholds are as follows: Strongly Undervalued below 2.32, Undervalued between 2.32 and 2.79, Fairly Valued between 3.72 and 2.79, Overvalued between 3.72 and 4.19, and Strongly Overvalued above 4.19. The current Forward PS of 4.04 falls within the Overvalued range.

19.09

P/OCF

Emerson Electric Co. (EMR) has a current P/OCF of 19.09. The 5-year average P/OCF is 16.89. The thresholds are as follows: Strongly Undervalued below 11.72, Undervalued between 11.72 and 14.31, Fairly Valued between 19.48 and 14.31, Overvalued between 19.48 and 22.07, and Strongly Overvalued above 22.07. The current Forward P/OCF of 19.09 falls within the Historic Trend Line -Fairly Valued range.

21.55

P/FCF

Emerson Electric Co. (EMR) has a current P/FCF of 21.55. The 5-year average P/FCF is 19.69. The thresholds are as follows: Strongly Undervalued below 13.73, Undervalued between 13.73 and 16.71, Fairly Valued between 22.67 and 16.71, Overvalued between 22.67 and 25.65, and Strongly Overvalued above 25.65. The current Forward P/FCF of 21.55 falls within the Historic Trend Line -Fairly Valued range.

Emerson Electric Co (EMR) has a current Price-to-Book (P/B) ratio of 3.77. Compared to its 3-year average P/B ratio of 3.34 , the current P/B ratio is approximately 12.81% higher. Relative to its 5-year average P/B ratio of 4.23, the current P/B ratio is about -10.98% higher. Emerson Electric Co (EMR) has a Forward Free Cash Flow (FCF) yield of approximately 3.49%. Compared to its 3-year average FCF yield of 3.09%, the current FCF yield is approximately 12.85% lower. Relative to its 5-year average FCF yield of 3.93% , the current FCF yield is about -11.22% lower.

3.77

P/B

Median3y

3.34

Median5y

4.23

3.49

FCF Yield

Median3y

3.09

Median5y

3.93

Competitors Valuation Multiple

The average P/S ratio for EMR's competitors is 5.44, providing a benchmark for relative valuation. Emerson Electric Co Corp (EMR) exhibits a P/S ratio of 4.04, which is -25.8% above the industry average. Given its robust revenue growth of 5.11%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of EMR increased by 9.39% 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.

5.11%

4.62B → 4.86B

Revenue Growth

14.21%

11.47 → 13.10

Margin Expansion

-9.93%

37.42 → 33.70

P/E Change

9.39%

129.95 → 142.15

Mkt Cap Growth

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Frequently Asked Questions

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

What is Emerson Electric Co (EMR) fair value?

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. The fair price of Emerson Electric Co (EMR) is between 135.83 to 159.37 according to relative valuation methord.

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

The average P/S ratio for EMR's competitors is 5.44, providing a benchmark for relative valuation. Emerson Electric Co Corp (EMR) exhibits a P/S ratio of 4.04, which is -25.80% above the industry average. Given its robust revenue growth of 5.11%, this premium appears unsustainable.

What is the current P/B ratio for Emerson Electric Co (EMR) as of Jan 09 2026?

As of Jan 09 2026, Emerson Electric Co (EMR) has a P/B ratio of 3.77. This indicates that the market values EMR at 3.77 times its book value.

What is the current FCF Yield for Emerson Electric Co (EMR) as of Jan 09 2026?

As of Jan 09 2026, Emerson Electric Co (EMR) has a FCF Yield of 3.49%. This means that for every dollar of Emerson Electric Co’s market capitalization, the company generates 3.49 cents in free cash flow.

What is the current Forward P/E ratio for Emerson Electric Co (EMR) as of Jan 09 2026?

As of Jan 09 2026, Emerson Electric Co (EMR) has a Forward P/E ratio of 21.00. This means the market is willing to pay $21.00 for every dollar of Emerson Electric Co’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for Emerson Electric Co (EMR) as of Jan 09 2026?

As of Jan 09 2026, Emerson Electric Co (EMR) has a Forward P/S ratio of 4.04. This means the market is valuing EMR at $4.04 for every dollar of expected revenue over the next 12 months.

EMR Valuation