Emerson Electric Valuation
Is EMR * undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
2/6Valuation Score 2/6
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 * (MX$2042) is trading below our estimate of fair value (MX$2281.73)
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.
| What is EMR *'s PE Ratio? | |
|---|---|
| PE Ratio | 36.9x |
| Earnings | US$1.71b |
| Market Cap | US$63.17b |
| Key Statistics | |
|---|---|
| Enterprise Value/Revenue | 4.6x |
| Enterprise Value/EBITDA | 17.6x |
| PEG Ratio | 2.1x |
Price to Earnings Ratio vs Peers
How does EMR *'s PE Ratio compare to its peers?
| Company | Forward PE | Estimated Growth | Market Cap |
|---|---|---|---|
| Peer Average | 42.6x | ||
GCARSO A1 Grupo Carso. de | 19.2x | 15.6% | Mex$269.2b |
AME AMETEK | 34.3x | 9.8% | US$45.7b |
VRT Vertiv Holdings Co | 90.5x | 31.2% | US$52.6b |
ABBN ABB | 26.6x | 9.2% | CHF 92.3b |
EMR * Emerson Electric | 36.9x | 17.5% | Mex$63.2b |
Price-To-Earnings vs Peers: EMR * is good value based on its Price-To-Earnings Ratio (36.9x) compared to the peer average (40.1x).
Price to Earnings Ratio vs Industry
How does EMR *'s PE Ratio compare vs other companies in the Global Electrical Industry?
| 33 Companies | Price / Earnings | Estimated Growth | Market Cap |
|---|---|---|---|
| 33 Companies | Estimated Growth | Market Cap | |
|---|---|---|---|
Price-To-Earnings vs Industry: EMR * is expensive based on its Price-To-Earnings Ratio (36.9x) compared to the Global Electrical industry average (26.2x).
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.
| Fair Ratio | |
|---|---|
| Current PE Ratio | 36.9x |
| Fair PE Ratio | n/a |
Price-To-Earnings vs Fair Ratio: Insufficient data to calculate EMR *'s Price-To-Earnings Fair Ratio for valuation analysis.
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.
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