Emerson Electric Co. (EMR) Stock Valuation — PE Analysis
Industrial - Machinery · NYSE
Current Price
$143.07
PE Ratio (TTM)
32.8x
Intrinsic Value
$185.23
+22.8% margin of safety
COMPETITIVE MOAT
↑Intelligent Devices Momentum
The Intelligent Devices segment, particularly Final Control and Sensors, shows strong growth. This momentum supports Emerson's fiscal 2026 sales outlook, indicating increasing demand for its advanced solutions.
↑Strategic R&D Partnerships
Collaboration with Aramco on corrosion R&D, focusing on advanced sensing and digitalization, strengthens Emerson's technological edge. This deepens industry relationships and drives innovation in critical areas.
↑Diversified Industrial Solutions
Emerson offers a broad portfolio of automation and industrial technologies. This diversification across various sectors provides resilience and reduces reliance on any single market segment.
INVESTMENT RISKS
↓Interest Rate Uncertainty
The prospect of delayed rate cuts until 2027 due to persistent inflation could increase borrowing costs. This may impact capital expenditures and overall profitability for industrial companies.
↓Post-Earnings Stock Volatility
Emerson's stock experienced a decline after its last earnings report. This suggests investor sensitivity to performance and potential for short-term volatility based on financial results.
↓Sustaining Segment Growth
The question of whether Emerson can sustain the momentum in its Intelligent Devices segment remains. Continued growth depends on market adoption and competitive pressures in advanced sensing and control.
Base case
EMR base case PE valuation
A base case PE valuation for EMR estimates a fair value of about $185.23 per share, against a current price of $143.07. The model assumes 12.6% annual earnings growth, a 33x target PE multiple, and a 10% discount rate.
Intrinsic Value
$185.23
Margin of safety
+22.8%
Expected annual return
+5.3%
Base case assumptions: 12.6% annual earnings growth, 33x target PE, 10% discount rate, 5 year projection. Data as of 2026-06-12.
This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the EMR PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Emerson Electric Co. respond.
Open PE Calculator for EMRCompany Overview
Emerson Electric Co. is an international technology and engineering firm that delivers diverse solutions to industrial, commercial, and residential clients across the Americas, Asia, the Middle East, Africa, and Europe. The company's operations are divided into two main segments: Automation Solutions, and Commercial & Residential Solutions. Through its Automation Solutions division, Emerson provides a range of products including advanced measurement and analytical instruments, industrial valves, and sophisticated process control software and systems. This segment caters to a broad spectrum of industries such as oil and gas, refining, chemical processing, power generation, life sciences, food and beverage, automotive manufacturing, pulp and paper production, metals and mining, and municipal water utilities. The Commercial & Residential Solutions segment focuses on climate control and other essential home and business applications. It supplies residential and commercial heating and air conditioning (HVAC) products, encompassing various compressors (reciprocating and scroll), system protectors, precise flow control devices, and a variety of thermostats (standard, programmable, and Wi-Fi enabled). The segment also delivers monitoring equipment and electronic control units for both gas and electric heating setups, specialized gas valves for furnaces and water heaters, furnace ignition systems, and an array of sensors and thermistors for home appliances, alongside general temperature sensors and controls. Furthermore, this division supplies reciprocating, scroll, and screw compressors, along with precision flow control mechanisms, comprehensive system diagnostics, and advanced environmental control systems. Beyond hardware, it extends its portfolio to include technologies for air conditioning, refrigeration, and lighting management. Complementing these offerings are services like facility design and product lifecycle management, site commissioning, ongoing facility monitoring, and energy modeling. The segment also manufactures tools for both professional tradespeople and DIY enthusiasts, and offers a suite of appliance solutions. Established in 1890, Emerson Electric Co. maintains its corporate headquarters in Saint Louis, Missouri.
Financial Metrics — EMR PE Stock Valuation Data
PE Ratio (TTM)
32.8x
PEG Ratio
9.87
Earnings Yield
3.05%
ROE (TTM)
12.1%
Revenue/Share (TTM)
$32.66
Dividend Yield
1.53%
Debt/Equity
0.69x
Frequently Asked Questions
What is the PE ratio of EMR?
The trailing twelve-month PE ratio of EMR reflects how much investors pay per dollar of Emerson Electric Co.'s earnings. This metric is most useful when compared to Industrial - Machinery peers and the company's own historical range.
Is EMR overvalued based on PE ratio?
EMR's PE of 32.8x combined with a PEG ratio of 9.87 provides a growth-adjusted perspective. A PEG above 2.0 suggests EMR may be richly valued even accounting for growth. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Industrial - Machinery, a DCF analysis may be more appropriate.
How do I value EMR stock using PE ratio?
To value Emerson Electric Co. using PE: (1) Compare the current PE (32.8x) against the Industrial - Machinery median to assess relative pricing, (2) check the PEG ratio (9.87) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
What is the PEG ratio of EMR?
EMR's PEG ratio is 9.87, calculated by dividing the PE ratio (32.8x) by the expected earnings growth rate. A PEG above 2.0 often signals the stock is priced aggressively relative to its growth trajectory. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for EMR stock valuation?
PE ratio gives a quick relative read — how EMR is priced versus Industrial - Machinery peers. DCF provides an absolute value based on projected free cash flows. For the most reliable valuation, use PE as a quick comparability screen and DCF for a deeper fundamental analysis. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
Learn More
- See EMR DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
- PE Methodology — Step-by-step guide to PE ratio stock valuation
- DCF Methodology — Guide to discounted cash flow analysis
- PE Ratio — Understanding the price-to-earnings ratio
- Intrinsic Value — How to evaluate stock fair value
Related PE Valuations
All Industrials valuationsP/E and DCF value EMR with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-06-12. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.