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Emerson Electric Company (EMR) Fair Value & Analysis

Industrials · US · Market cap $76.2B · ISIN US2910111044

What is Emerson Electric Company really worth?

EE Emerson Electric Company logo Emerson Electric Company EMR · US
Price$150.21
Fair Value$58.44
Upside−61.1%
Quality67/100

A solid business, but trading 157% above our fair value of $58.44.

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Strengths

Solidly profitable · 13.4% net margin
Low debt · generates free cash flow
Wide moat 68/100

Risks

!Weak Growth (revenue 5y +1.4 %/yr)
!Mixed vs. peers (7/15)
!Weak on future: 15 out of 100
!Weak on dividend: 29 out of 100

For context

·1.44% dividend yield
Evidence: High Range $37.18 – $81.44

Fair value as of: Aug 30, 2026

From 25 valuation models · updated 6 days ago

Share price −5.4% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • The price sits above even our optimistic bull case ($81.44). The favourable scenario is already priced in.
  • Solid but not exceptional quality (67/100) and above fair value, neither a clear bargain nor a standout compounder.
  • A fairly wide model range ($37.18 to $81.44) leaves room in how you read the outcome.

Price vs Fair Value (5 years)

$164.38 $67.93 Fair Value $58.44 Jun 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 30, 2026.

How to read this chart

60‑month range $67.93 – $164.38 · fair‑value band $37.18 – $81.44 · the $150.21 price screens above the $58.44 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 30, 2026.

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Analysis

Emerson Electric Company (EMR) currently trades at $150.21, while our model-based Fair Value estimate is $58.44, implying the stock looks roughly 157.0% overvalued today. The Quality Score stands at 67/100 (solid quality), in the Industrials sector. Bull case: the Multiples group reads highest at a median of $69.60 per share, and 0 of the 25 models we run sit above the $150.21 price. Bear case: the Asset-Based group reads lowest at $24.26, and 25 of the 25 models stay below the price. Evidence for this calculation is high.

Over the trailing twelve months, Emerson Electric Company generated revenue of $18.3B at a net margin of 13.4%. Revenue grew 2.9% year over year. It earns a return on equity of 12.3%. Net debt stands at $12.2B. Fundamentals as of Aug 30, 2026

Our scenario range runs from $37.18 (bear case) to $81.44 (bull case); at $150.21, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The last reported earnings sit well below what analysts expect (earnings in transition, for example after write-downs or an earnings dip); whether the stock is cheap or expensive hinges on the expected recovery actually arriving. Read the fair value with that caveat. The share trades about 8% below its 52-week high and 23% above its 52-week low, currently above its 200-day average. For context, the median of 10 Industrials peers we cover trades at −50% fair-value upside, at −61%, EMR screens richer than that median.

Fair Value models

This estimate rests on fiscal year 2025 figures, and about 11 months have passed since. In that time the company retained roughly $2.00 per share, which is 3.4 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.

Model 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. Evidence
Highest evidence
FCF DCF best evidence $37.60 $57.91 $86.23 80
Growth DCF $39.25 $58.48 $84.31 78
Owner Earnings $50.89 $76.63 $112.51 76
All 25 models by family
DCF Models
FCF DCF best evidence $37.60 $57.91 $86.23 80
Owner Earnings $50.89 $76.63 $112.51 76
5Y Revenue Exit $30.09 $49.36 $72.67 72
5Y EBITDA Exit $54.57 $92.17 $133.65 74
5Y P/E Exit $41.68 $69.62 $96.93 70
10Y Revenue Exit $31.35 $48.92 $69.79 66
10Y EBITDA Exit $47.69 $77.60 $113.55 68
10Y P/E Exit $39.69 $62.49 $87.20 64
Earnings-Based
Graham-Dodd $27.84 $58.28 $73.76 66
PEG = 1.0 $8.68 $12.40 $16.13 57
EPV $36.13 $44.16 $51.20 74
Dividend Discount
Gordon GGM $19.54 $29.35 $39.78 68
DDM Multi-Stage $19.54 $27.88 $37.41 67
Multiples
P/E Multiple $64.48 $85.97 $107.47 63
P/S Multiple $48.25 $64.33 $80.41 58
P/B Multiple $52.20 $69.60 $87.00 55
EV/EBIT $68.31 $95.11 $121.91 66
EV/EBITDA $75.81 $105.12 $134.42 67
EV/Revenue $28.43 $45.80 $63.17 53
Asset-Based
NCAV (Graham) $18.11 $24.26 $36.21 54
Growth DCF
Growth DCF $39.25 $58.48 $84.31 78
Rev-Margin DCF $30.09 $50.09 $71.10 72
Economic Profit
Residual Income $33.04 $37.87 $64.08 74
ROIC Compounder $36.13 $46.23 $57.50 72
Growth Earnings
Growth-Adj P/E $47.28 $67.55 $87.81 67

Widest divergence: Multiples ($69.60) versus Asset-Based ($24.26). Highest evidence: FCF DCF (80).

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Key figures & financial health

P/E ratio 34.6
P/S ratio 4.41 P/E × margin
EPS (TTM) $4.34 price ÷ EPS = P/E 34.6
Dividend yield 1.4% payout 49.9%
Net margin 12.7% FY2025
Return on equity 12.3% TTM
More key figures
Profitability
Return on assets (EBIT) 7.1% avg 5y
Operating margin 24.2% TTM
Growth
Revenue (TTM) $18.3B TTM
Revenue growth (YoY) +2.9% 3y avg +9.3%
EPS growth (YoY) +27.9%
Balance sheet & cash flow
Free cash flow $2.7B FY2025
Net debt $12.2B FY2025 · ≈ 4.6 yrs of FCF

Figures from reported company fundamentals · as of Aug 30, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 67/100

Of which business quality 64 · Market factors (momentum, volatility) 55

Profitability 43
Margins and returns on capital today
Quality Growth 63
Are margins and returns improving?
Cashflow 68
Earnings quality: real cash, not paper profit
Fin. Strength 65
Balance sheet, leverage, solvency risk
Investment 57
Disciplined investing over empire-building
Low Volatility 52
Calm price path (market factor)
Momentum 55
Price trend over the last 3–12 months (market factor)
52W Momentum 60
Distance to the 52-week high (market factor)
Net Issuance 95
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

Emerson Electric Co., a technology and software company, provides various solutions in the Americas, Asia, the Middle East, Africa, and Europe. It operates through Final Control, Measurement & Analytical, Discrete Automation, Safety & Productivity, Control Systems & Software, and Test & Measurement segments.

Full company description

Emerson Electric Co., a technology and software company, provides various solutions in the Americas, Asia, the Middle East, Africa, and Europe. 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.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

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.

Growth Quality 40/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
$18.0B
Latest YoY
+3.0%
Avg. revenue growth/yr (3Y) 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.
+9.3%
Avg. revenue growth/yr (5Y) 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.
+1.4%
Avg. revenue growth/yr (40Y) 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.
+3.4%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years, adjusted) plus dividend yield: value created per share and year.
+3.8% (2.4 + 1.4)
Revenue +8.6%/yr
FY21 $12.9B
FY22 $13.8B
FY23 $15.2B
FY24 $17.5B
FY25 $18.0B
Net income −0.1%/yr
FY21 $2.3B
FY22 $3.2B
FY23 $13.2B
FY24 $2.0B
FY25 $2.3B
Character of growth · EPS growth decomposed (2014-2025) +13.7 % p.a.
Revenue per share +2.4 %

of which total revenue +0.5 % · buybacks/dilution +1.9 %

EBIT margin −1.0 %
Tax rate +3.1 %
Residual (interest, one-offs) +8.8 %

Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).

EMR screens 157% overvalued. Compare with GE Vernova Inc →

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Cite: Fair Value Calculator (2026). "Emerson Electric Company Fair Value". https://www.fairvalue-calculator.com/stock/EMR

Recent news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

Peer Group

Specialty Industrial Machinery · 792 stocks

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.

Quality Score 67 · Top 25%
Fair Value upside −61% · Below median
Return on equity (TTM) 12% · Above median
Return on assets 7% · Top 25%
Net margin (TTM) 13% · Top 25%
Operating margin (TTM) 24% · Top 25%
Revenue growth 3% · Below median
Dividend yield (TTM) 1.4% · Above median
Debt / equity 0.41× · Higher than 75% of peers

Valuation Multiples vs Specialty Industrial Machinery median · lower = cheaper

P/E (TTM) 34.6× · Pricier than median
P/B 3.76× · Pricier than median
P/S (TTM) 4.16× · Pricier than 75% of peers
P/FCF 28.6× · Pricier than 75% of peers
EV/EBITDA 14.1× · Cheaper than median
PEG 1.89× · Pricier than median

Strength profile in five axes (Snowflake)

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE0 · sector 0
FUTURE15 · sector 21
PAST49 · sector 28
HEALTH80 · sector 96
DIVIDEND29 · sector 27

VALUE 0: the price sits above our fair-value range.

Insider activity: 46/100

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

Similar stocks

10 more Specialty Industrial Machinery stocks, each showing price versus our Fair Value estimate (as of Aug 30, 2026).

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GE Vernova Inc GEV $941.84 $131.95 −86%
SIE SIE €289.85 €139.77 −52%
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Parker-Hannifin Corporation PH $995.02 $398.69 −60%
Atlas Copco AB ATCOA kr 206.60 kr 112.59 −46%
Cummins Inc CMI $564.40 $348.94 −38%
Illinois Tool Works Inc ITW $281.67 $145.84 −48%
AMETEK, Inc AME $236.25 $125.80 −47%
Rockwell Automation, Inc ROK $417.53 $125.76 −70%
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Frequently asked questions

Is Emerson Electric Company (EMR) overvalued or undervalued?
As of Aug 30, 2026, our model estimates a fair value of $58.44 versus a price of $150.21, about −61% upside (overvalued).
What is the fair value of EMR?
Our model-based fair value for Emerson Electric Company is $58.44 (as of Aug 30, 2026), built from audited fundamentals. The current price: $150.21.
What is the quality score of EMR?
Emerson Electric Company has a Quality Score of 67/100. 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 revenue of Emerson Electric Company (EMR)?
Emerson Electric Company reported trailing-twelve-month revenue of about $18.3B (latest available figure, as of Aug 30, 2026).
What is the net profit margin of EMR?
The net profit margin of Emerson Electric Company is about 13.4%, meaning it keeps roughly 13.4% of revenue as net income. Based on the latest reported figures.
Does Emerson Electric Company pay a dividend?
Emerson Electric Company currently shows a dividend yield of about 1.44% relative to its recent price (as of Aug 30, 2026).
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