Emerson Electric Company

Valuation Analysis

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. 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,

Emerson Electric Company Stock at a Glance

Emerson Electric Company (EMR) is currently trading at $143.07 with a market capitalization of $80.1B. The trailing P/E ratio stands at 33.12x, with a forward P/E of 19.97x. The 52-week range spans from $122.64 to $165.15; the current price is 13.4% below the yearly high. Year-over-year revenue growth stands at +2.9%. The net profit margin stands at 13.35%.

💰 Dividend

Emerson Electric Company pays an annual dividend of $2.22 per share, representing a yield of 1.55%. The payout ratio stands at 50.12%.

📊 Analyst Rating

28 analysts rate Emerson Electric Company (EMR) on consensus: Buy. The average price target is $164.13, implying +14.72% from the current price. Analyst price targets range from $104.00 to $203.00.

Emerson Electric Company: The Investment Case in Detail

Emerson Electric Company (EMR) operates in the Industrials — specifically Specialty Industrial Machinery — and is headquartered in United States. Below is a structured read of the investment case built directly from the latest fundamentals, valuation multiples, analyst positioning and smart-money flows. Each section translates raw numbers into the investment logic they imply, so you can decide whether the risk/reward fits your portfolio.

The Bull Case

Earnings growth of 27.9% is outpacing revenue, a sign of operational leverage — fixed costs are being absorbed across a larger base. The combination of a 52.67% gross margin and 24.24% operating margin shows the business converts revenue into profit efficiently — a hallmark of competitive moat.

The Bear Case

Revenue growth has slowed to just 2.9%, which is below nominal GDP — the business is no longer outgrowing the broader economy. Our valuation screen flags the stock as overvalued — current multiples imply the business needs to deliver well above its recent trajectory to justify the price.

What to Watch Next

• The forward P/E of 19.97x is meaningfully below the trailing 33.12x — analysts expect earnings to step up; the next earnings release is the test.

Investment Thesis: Strengths & Weaknesses

Technical Snapshot

Price trades above both the 50- and 200-day moving averages, with 50d above 200d — a classic bullish setup (golden-cross alignment).

Risk Profile

The data points to market-like volatility.

Trading Data

💵 Dividend Info

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