Emerson Electric Co.

BOVESPA:E1MR34 Stock Report

Market Cap: R$427.0b

Emerson Electric Valuation

Is E1MR34 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of E1MR34 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: E1MR34 (R$736.56) is trading above our estimate of fair value (R$534.78)

Significantly Below Fair Value: E1MR34 is trading above our estimate of fair value.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for E1MR34?

Key metric: As E1MR34 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for E1MR34. This is calculated by dividing E1MR34's market cap by their current earnings.
What is E1MR34's PE Ratio?
PE Ratio45.4x
EarningsUS$1.62b
Market CapUS$73.46b

Price to Earnings Ratio vs Peers

How does E1MR34's PE Ratio compare to its peers?

The above table shows the PE ratio for E1MR34 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average47.2x
37x14.1%R$227.1b
26.6x9.2%CHF 91.3b
AME AMETEK
34x9.8%US$44.7b
VRT Vertiv Holdings Co
91.3x31.2%US$51.6b
E1MR34 Emerson Electric
45.4x18.8%R$73.5b

Price-To-Earnings vs Peers: E1MR34 is good value based on its Price-To-Earnings Ratio (45.4x) compared to the peer average (47.2x).


Price to Earnings Ratio vs Industry

How does E1MR34's PE Ratio compare vs other companies in the Global Electrical Industry?

37 CompaniesPrice / EarningsEstimated GrowthMarket Cap
E1MR34 45.4xIndustry Avg. 26.5xNo. of Companies91PE020406080100+
37 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: E1MR34 is expensive based on its Price-To-Earnings Ratio (45.4x) compared to the Global Electrical industry average (26.5x).


Price to Earnings Ratio vs Fair Ratio

What is E1MR34's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

E1MR34 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio45.4x
Fair PE Ratio22x

Price-To-Earnings vs Fair Ratio: E1MR34 is expensive based on its Price-To-Earnings Ratio (45.4x) compared to the estimated Fair Price-To-Earnings Ratio (22x).


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.


Discover undervalued companies