Emerson Electric Company (EMR) fair value: what the stock is really worth
As of Oct 22, 2026: fair value (intrinsic value) of Emerson Electric Company stock $62.85, price $160, upside -60.8%, quality 65 out of 100. Rating: strongly overvalued. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
69 individual criteria per stock, every one traceableSee the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Oct 22, 2026.
How to read this chart
60‑month range $67.70 – $163.82 · fair‑value band $40.97 – $86.45 · the $160.29 price screens above the $62.85 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Oct 22, 2026.
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Emerson Electric Co., a technology and software company, provides various solutions in the Americas, Asia, the Middle East, Africa, and Europe.
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It operates through Final Control, Measurement & Analytical, Discrete Automation, Safety & Productivity, Control Systems & Software, and Test & Measurement segments.
The Final Control segment provides control valves, isolation valves, shutoff valves, pressure relief valves, pressure safety valves, actuators, and regulators for process and hybrid industries under Anderson Greenwood, Bettis, Crosby, Fisher, Keystone, KTM, and Vanessa brands.
The Measurement & Analytical segment supplies intelligent instrumentation measuring the physical properties of liquids or gases, such as pressure, temperature, level, flow, acoustics, corrosion, pH, conductivity, water quality, toxic gases, and flame under the Flexim, Micro Motion, and Rosemount brands.
The Discrete Automation segment includes solenoid valves, pneumatic valves, valve position indicators, pneumatic cylinders and actuators, air preparation equipment, pressure and temperature switches, electric linear motion solutions, programmable automation control systems and software, electrical distribution equipment, and materials joining solutions used primarily in discrete industries under the Afag, Appleton, ASCO, Aventics, Branson, Movicon, PACSystems, SolaHD, TESCOM, and TopWorx brands.
The Safety & Productivity segment delivers tools for professionals and homeowners that support infrastructure, promote safety, and enhance productivity under the Greenlee, Klauke, ProTeam, and RIDGID brands.
The Control Systems & Software segment provides control systems and software that control plant processes by collecting and analyzing information from measurement devices in the plant under the DeltaV and Ovation brands.
The Test & Measurement offers software-connected automated test and measurement systems. The company was incorporated in 1890 and is headquartered in Saint Louis, Missouri.
Stock analysis
Emerson Electric Company (EMR) currently trades at $160.29, while our model-based Fair Value estimate is $62.85, 60.8% below the price, so the stock looks overvalued today.
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Valuation
Bull case: the Multiples group reads highest at a median of $85.75 per share, and 0 of the 23 models we run sit above the $160.29 price.
Bear case: the Dividend Discount group reads lowest at $25.72, and 23 of the 23 models stay below the price. Data coverage for this calculation is high.
Scenario range: $40.97 (bear) to $86.45 (bull), the price of $160.29 sits above it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 65/100 (solid quality), in the Industrials sector.
Weak Growth: Revenue growth is weak: less than 2 % a year.
Emerson Electric Company reported revenue of $18.0B in FY2025 versus $12.9B in FY2021, a compound +8.6%/yr. Reported net income was $2.3B in FY2025, compounding −0.1%/yr from FY2021.
Key figures
Market cap $89.9B Large · P/E ratio 35.1 · P/S ratio 4.91 · EPS (TTM) $4.57 · Dividend yield 1.4% · Net margin 13.8% · Return on equity 12.8% · Return on assets (EBIT) 7.1%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 69 out of 100 (medium confidence).
What moves the price
The share trades about 2% below its 52-week high and 31% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Industrials peers we cover trades at −45% fair-value upside, at −61%, EMR screens richer than that median.
Fair Value models
Bear$40.97Fair Value $62.85Bull$86.45
Price $160.29 · Upside -60.8%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2025 figures (about 12 months old). Earnings retained since then ($2.38 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.40/100
Revenue growth is weak: less than 2 % a year.
Revenue growth 1 year
+3.0%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+9.3%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+1.4%
Start year 2020 (pandemic). Over 10 years: +1.0% a year
Revenue growth 40 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+3.4%
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What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Basis: adjusted.
+3.8%
Earnings growth per share plus dividend.
Earnings per share, growth per year+2.4%
Dividend (yield on the price)1.4%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.1.7% vs 2.9%, steady
Profit margin 2020 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.17% → 20%
Pace: the 5-year rate starts in 2020 (pandemic)
Growth Forecast
A lot of optimism in the price
The price assumes more growth than the company has delivered so far and more than analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+21.6%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+4.8%
Yearly sales growth analysts expect, extended to five years.
After inflation (USA: IMF forecast 2.4% a year to 2030, 3.1% from 2016 to 2025) that is about +18.8% a year for the price and +2.3% for the forecasts.
AI conclusion: Emerson's automation focus and software wins build a moderate moat in organization capital, yet average pricing power and cyclical hardware exposure remain the central limitation in a competitive setting.
Main risk: Continued exposure to hardware cycles and project timing would hit revenue stability and margin consistency in the core industrial equipment business.
Emerson is landing software wins such as the Logtek contract for automated subsurface workflows in energy exploration. This adds to its push into AI-enabled automation platforms that could stabilize revenue streams. At the same time the company remains exposed to hardware cycles, project timing and softer demand in certain regions. Will the software shift generate enough recurring growth to outweigh those traditional pressures?
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Specialty Industrial Machinery · 800 stocks
Beats the industry median on 7/14 measures
A mixed picture versus its industry peers.
Valuation
Quality Score65 · Top 25%
Fair Value upside−61.5% · Bottom 25%
Profitability
Return on equity (12 months)12.8% · Above median
Return on assets5.5% · Above median
Net margin (12 months)13.8% · Top 25%
Operating margin (12 months)26.9% · Top 25%
Growth and dividend
Revenue growth (quarter YoY)7.0% · Above median
Dividend yield (12 months)1.4% · Above median
Balance sheet
Debt / equity0.41× · Highest 25%
Valuation Multiplesvs Specialty Industrial Machinery median · lower = cheaper
P/E (12 months)35.1× · Pricier than median
P/B4.51× · book value is mostly goodwill ⓘGoodwill and other intangible assets are larger than the equity. The book value mainly reflects prices paid for past acquisitions, so we do not rank this P/B against the peer group.
P/S (12 months)4.91× · Priciest 25%
Price / free cash flow34.3× · Pricier than median
EV/EBITDA16.2× · Pricier than median
PEG1.78× · Pricier than median
Strength profile in five axes (Snowflake)
This stockSector peers
VALUE (fair-value potential)0· sector 0
FUTURE (revenue growth)35· sector 32
PAST (return on equity)51· sector 27
HEALTH (low debt)80· sector 95
DIVIDEND (yield)27· sector 27
VALUE 0: the price sits above our fair-value range.
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Cite: Fair Value Calculator (2026). "Emerson Electric Company Fair Value". https://www.fairvalue-calculator.com/stock/EMR
Frequently asked questions
Is Emerson Electric Company (EMR) overvalued or undervalued?
As of Oct 22, 2026, our model estimates a fair value of $62.85 versus a price of $160.29, about −61% upside (overvalued).
What is the fair value of EMR?
Our model-based fair value for Emerson Electric Company is $62.85 (as of Oct 22, 2026), built from audited fundamentals. The current price: $160.29.
What is the quality score of EMR?
Emerson Electric Company has a Quality Score of 65/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Emerson Electric Company (EMR)?
Our model-based price target is the fair value of $62.85 (as of Oct 22, 2026) from 23 valuation models. Cautious scenario $40.97, optimistic scenario $86.45. It is a calculation from audited fundamentals, not an analyst target.
What is the Emerson Electric Company stock forecast for 2026?
Our models put fair value at $62.85, about −61% upside versus a price of $160.29 (overvalued). Cautious scenario $40.97, optimistic scenario $86.45. The calculation is refreshed regularly with new filings.
What is the revenue of Emerson Electric Company (EMR)?
Emerson Electric Company reported trailing-twelve-month revenue of about $18.6B (latest available figure, as of Oct 22, 2026).
Does Emerson Electric Company pay a dividend?
Emerson Electric Company currently shows a dividend yield of 1.37% relative to its recent price (as of Oct 22, 2026).
What growth is priced into Emerson Electric Company (EMR)?
For today's price to be fair in a discounted-cash-flow model, Emerson Electric Company would have to grow free cash flow by +21.6 % per year for five years (discount rate 9.7 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +1.4 % per year. As of Oct 22, 2026.
What discount rate (WACC) does the fair value of EMR use?
Our models discount Emerson Electric Company at 9.7 %: a base by market capitalisation (large), damped by beta 1.21, country premium for USA. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Emerson Electric Company that is +21.6 % per year a year over ten years, using the same discount rate (9.7 %) and the same formula as our fair value.
How much growth has Emerson Electric Company (EMR) delivered so far?
Over the past 5 years revenue at Emerson Electric Company grew +1.4 % a year. The price currently implies +21.6 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Emerson Electric Company (EMR) growing?
The median revenue growth in the sector is +7.5 % a year. That is the yardstick for the growth priced into Emerson Electric Company (+21.6 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Emerson Electric Company (EMR)?
The free-cash-flow yield on the price is 2.97 %: that much free cash flow Emerson Electric Company produces per unit of market value. When it exceeds the discount rate of our models (9.7 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Emerson Electric Company (EMR)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Emerson Electric Company it is $62.85 per share (as of Oct 22, 2026), against a price of $160.29. It is the blended result of 23 valuation models (cash flow, earnings, asset, dividend).
Is Emerson Electric Company stock overvalued or undervalued in 2026?
As of Oct 22, 2026, EMR trades above its calculated fair value: price $160.29, fair value $62.85, a gap of about −61% (overvalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of EMR?
No. The price is what the market pays today ($160.29); the fair value is what the company's own numbers justify ($62.85). For Emerson Electric Company the two are $97.44 per share apart. That gap is exactly why we show both numbers side by side.
How much is Emerson Electric Company worth?
The market values Emerson Electric Company at about $89.9B (market capitalisation, as of Oct 22, 2026). Per share that is $160.29; our models calculate a fair value of $62.85 per share.
What do the bullish and bearish scenarios say about EMR?
Our models span a range for Emerson Electric Company: cautious scenario $40.97, base $62.85, optimistic $86.45 per share (as of Oct 22, 2026, price $160.29). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of EMR?
Emerson Electric Company trades at a price-to-earnings ratio of 35.1 (as of Oct 22, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $62.85 is built from several models across several years. Excluding one-off items of fiscal year 2025 it is 37.3 (reported for FY2025: 39.6). Other multiples: PEG 1.8, P/B 4.5, P/S 4.9, EV/EBITDA 16.2.
What is the PEG ratio of EMR?
The PEG ratio of Emerson Electric Company is 1.78 (P/E divided by earnings growth, as of Oct 22, 2026). That is above 1, so the growth is already paid for in the price.
How solid is the balance sheet of Emerson Electric Company (EMR)?
Balance-sheet figures for Emerson Electric Company (as of Oct 22, 2026): return on equity 12.8%, debt of 0.41 per unit of equity. They feed the Quality Score of 65/100, which measures business quality independently of the share price.
How far is EMR from its 52-week high?
Emerson Electric Company trades at $160.29, about 2% below its 52-week high of $163.82 and 31% above the low of $122.34 (as of Oct 22, 2026). Distance from the high says nothing about value: that is what the fair value of $62.85 is for.
Which stocks are comparable to Emerson Electric Company?
From the same area (Industrials) we also value GE Vernova Inc, SIE, Eaton Corporation, Parker-Hannifin Corporation, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Emerson Electric Company stock attractive at the current price?
The data as of Oct 22, 2026: price $160.29, calculated fair value $62.85 (−61%), Quality Score 65/100, from 23 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of EMR calculated?
We run Emerson Electric Company through 23 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of $62.85, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 13.2 % above its aggregate fair value. Emerson Electric Company itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Emerson Electric Company (EMR)?
The closing price on Oct 22, 2026 was $160.29. Our model-based fair value is $62.85, about −61% upside (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Emerson Electric Company right now?
The price sits above even our optimistic bull case ($86.45). The favourable scenario is already priced in. Solid but not exceptional quality (65/100) and above fair value, neither a clear bargain nor a standout compounder. A fairly wide model range ($40.97 to $86.45) leaves room in how you read the outcome.
Where does the earnings growth of Emerson Electric Company (EMR) come from?
Earnings per share at Emerson Electric Company grew +13.7 % a year from 2014 to 2025. Broken into its drivers: revenue per share +2.4 %, EBIT margin −1.0 %, tax rate +3.1 %, residual (interest, one-offs) +8.8 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of Emerson Electric Company
How large is the market capitalisation of Emerson Electric Company (EMR)?
The market capitalisation of Emerson Electric Company is $89.9B. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Emerson Electric Company (EMR)?
The price-to-sales ratio of Emerson Electric Company is 4.91 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Emerson Electric Company (EMR)?
Earnings per share at Emerson Electric Company are $4.57 (price ÷ EPS = P/E 35.1). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Emerson Electric Company (EMR)?
The dividend yield of Emerson Electric Company is 1.4% (payout 45.2%, on adjusted earnings, reported 48.0%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Emerson Electric Company (EMR)?
The net margin of Emerson Electric Company is 13.8% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Emerson Electric Company (EMR)?
The return on equity (ROE) of Emerson Electric Company is 12.8% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Emerson Electric Company (EMR)?
On an EBIT basis the return on assets of Emerson Electric Company is 7.1% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Emerson Electric Company (EMR)?
The operating margin of Emerson Electric Company is 26.9% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Emerson Electric Company (EMR)?
Revenue at Emerson Electric Company is growing +7.0% versus a year earlier (3y avg +9.3%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Emerson Electric Company (EMR)?
Earnings per share at Emerson Electric Company are growing +23.0% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does Emerson Electric Company (EMR) carry?
The net debt of Emerson Electric Company is $12.2B (fiscal year 2025, ≈ 4.6 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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Broad data
Oct 22, 2026