Emerson Electric Valuation

Is 1EMR 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 1EMR when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Discounted Cash Flow
Simply Wall St
€127.73
Fair Value
16.0% undervalued intrinsic discount
29
Number of Analysts

Below Fair Value: 1EMR (€107.32) is trading below our estimate of fair value (€127.73)

Significantly Below Fair Value: 1EMR 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 1EMR?

Key metric: As 1EMR is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 1EMR. This is calculated by dividing 1EMR's market cap by their current earnings.
What is 1EMR's PE Ratio?
PE Ratio34.4x
EarningsUS$1.97b
Market CapUS$67.64b

Price to Earnings Ratio vs Peers

How does 1EMR's PE Ratio compare to its peers?

The above table shows the PE ratio for 1EMR vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average21.7x
PRY Prysmian
22.5x16.12%€15.6b
CMB Cembre
20.8x4.69%€933.2m
EGLA EuroGroup Laminations
15.1x17.59%€471.1m
LDO Leonardo
28.1x13.63%€28.2b
1EMR Emerson Electric
34.4x13.70%€67.6b

Price-To-Earnings vs Peers: 1EMR is expensive based on its Price-To-Earnings Ratio (34.4x) compared to the peer average (21.7x).


Price to Earnings Ratio vs Industry

How does 1EMR's PE Ratio compare vs other companies in the European Electrical Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
1EMR 34.4xIndustry Avg. 15.9xNo. of Companies10PE01224364860+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 1EMR is expensive based on its Price-To-Earnings Ratio (34.4x) compared to the European Electrical industry average (16x).


Price to Earnings Ratio vs Fair Ratio

What is 1EMR'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.

1EMR PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio34.4x
Fair PE Ratio28.8x

Price-To-Earnings vs Fair Ratio: 1EMR is expensive based on its Price-To-Earnings Ratio (34.4x) compared to the estimated Fair Price-To-Earnings Ratio (28.8x).


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 1EMR forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€107.32
€118.53
+10.44%
10.88%€148.89€93.28n/a29
May ’26€92.02
€115.83
+25.87%
13.97%€148.18€87.32n/a29
Apr ’26€101.86
€130.71
+28.32%
10.77%€156.24€97.65n/a28
Mar ’26€115.36
€134.93
+16.96%
9.81%€159.75€105.55n/a28
Feb ’26€125.68
€134.35
+6.90%
10.10%€157.21€100.65n/a27
Jan ’26€119.44
€134.11
+12.29%
10.22%€152.86€100.32n/a27
Dec ’25€125.70
€128.60
+2.30%
9.47%€147.68€100.04n/a26
Nov ’25€99.92
€116.72
+16.82%
9.15%€141.45€95.22n/a24
Oct ’25€98.93
€114.25
+15.48%
8.67%€138.22€93.05n/a24
Sep ’25€94.44
€116.51
+23.37%
7.86%€138.89€93.50n/a23
Aug ’25€105.42
€120.73
+14.52%
6.66%€140.41€100.95n/a23
Jul ’25€101.10
€122.39
+21.06%
5.92%€131.08€102.99n/a22
Jun ’25€101.18
€120.15
+18.75%
6.46%€129.63€101.85n/a22
May ’25€101.48
€116.60
+14.90%
6.69%€130.48€98.56€92.0223
Apr ’25€105.00
€111.47
+6.16%
6.78%€124.22€88.07€101.8624
Mar ’25€99.62
€108.39
+8.81%
8.42%€123.83€87.79€115.3623
Feb ’25€85.68
€101.25
+18.17%
9.35%€123.53€81.13€125.6823
Jan ’25€87.68
€97.71
+11.44%
9.25%€113.88€80.17€119.4423
Dec ’24€82.48
€97.76
+18.53%
9.05%€114.81€80.83€125.7023
Nov ’24€84.60
€104.46
+23.48%
7.53%€118.66€90.18€99.9223
Oct ’24€91.82
€104.05
+13.32%
7.22%€116.13€90.43€98.9323
Sep ’24€91.82
€99.47
+8.34%
8.14%€112.78€83.20€94.4423
Aug ’24€83.10
€93.80
+12.88%
9.84%€110.86€75.42€105.4222
Jul ’24€82.48
€94.24
+14.26%
9.66%€111.78€76.04€101.1022
Jun ’24€73.10
€95.20
+30.23%
10.73%€114.16€73.92€101.1823
May ’24€75.50
€93.10
+23.31%
10.42%€110.72€71.69€101.4822
AnalystConsensusTarget
Consensus Narrative from 29 Analysts
€117.59
Fair Value
8.7% undervalued intrinsic discount
29
Number of Analysts

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 Analysis2025/05/16 18:57
End of Day Share Price 2025/05/16 00:00
Earnings2025/03/31
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.

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 Github.

Analyst Sources

Emerson Electric Co. is covered by 57 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