Emerson Electric Valuation

Is EMR 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 EMR when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: EMR (CHF64.57) is trading below our estimate of fair value (CHF71.52)

Significantly Below Fair Value: EMR is trading below fair value, but not by a significant amount.


Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for EMR. This is calculated by dividing EMR's market cap by their current earnings.
What is EMR's PE Ratio?
PE Ratio43.5x
EarningsUS$1.62b
Market CapUS$70.30b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for EMR vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average25x
25.7x9.2%CHF 90.4b
HUBN Huber+Suhner
21.5x14.9%CHF 1.3b
PMN Phoenix Mecano
10.3x8.0%CHF 410.7m
ROL Von Roll Holding
42.3xn/aCHF 287.3m
EMR Emerson Electric
43.5x19.4%CHF 70.3b

Price-To-Earnings vs Peers: EMR is expensive based on its Price-To-Earnings Ratio (43.5x) compared to the peer average (25x).


Price to Earnings Ratio vs Industry

How does EMR's PE Ratio compare vs other companies in the European Electrical Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
EMR 43.5xIndustry Avg. 16.5xNo. of Companies13PE01224364860+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: EMR is expensive based on its Price-To-Earnings Ratio (43.5x) compared to the European Electrical industry average (16.5x).


Price to Earnings Ratio vs Fair Ratio

What is EMR'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.

EMR PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio43.5x
Fair PE Ratio35x

Price-To-Earnings vs Fair Ratio: EMR is expensive based on its Price-To-Earnings Ratio (43.5x) compared to the estimated Fair Price-To-Earnings Ratio (35x).


Analyst Price Targets

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

The above table shows the analyst EMR forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCHF 64.57
CHF 127.49
+97.4%
10.2%CHF 145.43CHF 95.44n/a27
Dec ’25CHF 64.57
CHF 119.61
+85.2%
9.5%CHF 137.36CHF 93.05n/a26
Nov ’25CHF 64.57
CHF 109.20
+69.1%
9.2%CHF 132.33CHF 89.08n/a24
Oct ’25CHF 64.57
CHF 107.02
+65.7%
8.7%CHF 129.47CHF 87.16n/a24
Sep ’25CHF 64.57
CHF 111.06
+72.0%
7.9%CHF 132.40CHF 89.13n/a23
Aug ’25CHF 64.57
CHF 117.84
+82.5%
6.7%CHF 137.05CHF 98.53n/a23
Jul ’25CHF 64.57
CHF 117.30
+81.7%
5.9%CHF 125.62CHF 98.70n/a22
Jun ’25CHF 64.57
CHF 118.54
+83.6%
6.5%CHF 127.89CHF 100.49n/a22
May ’25CHF 64.57
CHF 113.07
+75.1%
6.7%CHF 126.52CHF 95.58n/a23
Apr ’25CHF 64.57
CHF 108.45
+68.0%
6.8%CHF 120.85CHF 85.67n/a24
Mar ’25CHF 64.57
CHF 103.36
+60.1%
8.4%CHF 118.08CHF 83.71n/a23
Feb ’25CHF 64.57
CHF 95.63
+48.1%
9.4%CHF 116.68CHF 76.62n/a23
Jan ’25CHF 64.57
CHF 92.32
+43.0%
9.3%CHF 107.59CHF 75.74CHF 64.5723
Dec ’24CHF 64.57
CHF 94.06
+45.7%
9.0%CHF 110.47CHF 77.77CHF 64.5723
Nov ’24CHF 64.57
CHF 98.94
+53.2%
7.5%CHF 112.39CHF 85.42CHF 64.5723
Oct ’24CHF 64.57
CHF 100.66
+55.9%
7.2%CHF 112.35CHF 87.49CHF 64.5723
Sep ’24CHF 64.57
CHF 95.09
+47.3%
8.1%CHF 107.81CHF 79.53CHF 64.5723
Aug ’24CHF 64.57
CHF 90.81
+40.6%
9.8%CHF 107.33CHF 73.02CHF 64.5722
Jul ’24CHF 64.57
CHF 92.25
+42.9%
9.7%CHF 109.41CHF 74.43CHF 64.5722
Jun ’24CHF 64.57
CHF 92.67
+43.5%
10.7%CHF 111.13CHF 71.96CHF 64.5723
May ’24CHF 64.57
CHF 91.69
+42.0%
10.4%CHF 109.04CHF 70.61CHF 64.5722
Apr ’24CHF 64.57
CHF 93.71
+45.1%
11.1%CHF 112.57CHF 72.89CHF 64.5720
Mar ’24CHF 64.57
CHF 94.08
+45.7%
11.1%CHF 112.79CHF 73.04CHF 64.5720
Feb ’24CHF 64.57
CHF 94.40
+46.2%
11.2%CHF 111.85CHF 72.43CHF 64.5720
Jan ’24CHF 64.57
CHF 97.63
+51.2%
11.8%CHF 116.10CHF 73.38CHF 64.5721

Analyst Forecast: Target price is less than 20% higher than the current share price.


Discover undervalued companies

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/01/05 08:30
End of Day Share Price 2025/01/03 00:00
Earnings2024/09/30
Annual Earnings2024/09/30

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Emerson Electric Co. is covered by 54 analysts. 26 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
David HeasmanAccountability Research Corporation
John EadeArgus Research Company
Richard RadbourneAtlantic Equities LLP