Emerson Electric Co.

NYSE:EMR Stock Report

Market Cap: US$71.1b

Emerson Electric Valuation

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

Valuation Score

2/6

Valuation 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 ($124.09) is trading below our estimate of fair value ($124.71)

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 Ratio43.9x
EarningsUS$1.62b
Market CapUS$71.07b

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 Average44.8x
AME AMETEK
31.8x9.7%US$42.4b
ETN Eaton
35.5x11.0%US$133.6b
VRT Vertiv Holdings Co
77.5x30.6%US$45.1b
ROK Rockwell Automation
34.5x10.7%US$32.7b
EMR Emerson Electric
43.9x19.4%US$71.1b

Price-To-Earnings vs Peers: EMR is good value based on its Price-To-Earnings Ratio (43.9x) compared to the peer average (44.8x).

Price to Earnings Ratio vs Industry

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

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
KRFG OneSolution Technology
1xn/aUS$1.33m
No more companies available in this PE range
EMR 43.9xIndustry Avg. 22.5xNo. of Companies5PE01632486480+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: EMR is expensive based on its Price-To-Earnings Ratio (43.9x) compared to the US Electrical industry average (22.5x).

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 Ratio43.9x
Fair PE Ratio34.4x

Price-To-Earnings vs Fair Ratio: EMR is expensive based on its Price-To-Earnings Ratio (43.9x) compared to the estimated Fair Price-To-Earnings Ratio (34.4x).

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
CurrentUS$124.09
US$140.37
+13.1%
10.2%US$160.00US$105.00n/a27
Dec ’25US$132.60
US$134.97
+1.8%
9.5%US$155.00US$105.00n/a26
Nov ’25US$108.46
US$126.26
+16.4%
9.2%US$153.00US$103.00n/a24
Oct ’25US$109.26
US$126.46
+15.7%
8.7%US$153.00US$103.00n/a24
Sep ’25US$105.39
US$128.34
+21.8%
7.9%US$153.00US$103.00n/a23
Aug ’25US$113.09
US$131.56
+16.3%
6.7%US$153.00US$110.00n/a23
Jul ’25US$108.05
US$130.72
+21.0%
5.9%US$140.00US$110.00n/a22
Jun ’25US$112.16
US$129.77
+15.7%
6.5%US$140.00US$110.00n/a22
May ’25US$106.45
US$124.22
+16.7%
6.7%US$139.00US$105.00n/a23
Apr ’25US$113.54
US$120.25
+5.9%
6.8%US$134.00US$95.00n/a24
Mar ’25US$108.14
US$117.30
+8.5%
8.4%US$134.00US$95.00n/a23
Feb ’25US$93.76
US$109.83
+17.1%
9.4%US$134.00US$88.00n/a23
Jan ’25US$97.33
US$107.26
+10.2%
9.3%US$125.00US$88.00n/a23
Dec ’24US$90.12
US$106.43
+18.1%
9.0%US$125.00US$88.00US$132.6023
Nov ’24US$89.61
US$110.04
+22.8%
7.5%US$125.00US$95.00US$108.4623
Oct ’24US$96.57
US$109.30
+13.2%
7.2%US$122.00US$95.00US$109.2623
Sep ’24US$98.92
US$107.61
+8.8%
8.1%US$122.00US$90.00US$105.3923
Aug ’24US$91.63
US$103.23
+12.7%
9.8%US$122.00US$83.00US$113.0922
Jul ’24US$90.39
US$102.86
+13.8%
9.7%US$122.00US$83.00US$108.0522
Jun ’24US$79.35
US$101.74
+28.2%
10.7%US$122.00US$79.00US$112.1623
May ’24US$83.35
US$102.59
+23.1%
10.4%US$122.00US$79.00US$106.4522
Apr ’24US$87.14
US$101.57
+16.6%
11.1%US$122.00US$79.00US$113.5420
Mar ’24US$83.06
US$101.77
+22.5%
11.1%US$122.00US$79.00US$108.1420
Feb ’24US$91.62
US$102.97
+12.4%
11.2%US$122.00US$79.00US$93.7620
Jan ’24US$96.06
US$105.11
+9.4%
11.8%US$125.00US$79.00US$97.3321
Dec ’23US$95.64
US$103.55
+8.3%
12.2%US$125.00US$79.00US$90.1220

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

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/22 02:13
End of Day Share Price 2024/12/20 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