NYSE
EMR
Last Price
US $143.15
KEY FIGURES
MKT CAP
$80.4B
EPS
TTM
$4.36
PEG
TTM
9.92x
P/E
TTM
32.99x
P/S
TTM
4.46x
YIELD
1.53%
GROWTH
Revenue Y/Y
Profit margin
Current Ratio
Capital Returns
12.11%
Return on equity
ROIC: 7.70%
Valuation History
33.0X
Price to Earnings
EV/EBITDA: 18.0X
Cash flow
Profit margin
1.43%
(FY vs FY)
EBITDA Y/Y
7.54%
(FY vs FY)
Cash flow Y/Y
0.94%
(FY vs FY)
Cash Flow (DCF)
Fair Value
Market $143.15
-74.79%
Default assumptions
EBITDA Multiple
Fair Value
Market $143.15
-73.09%
Default assumptions
Base valuations use default assumptions. Customize in the Valuator.
Valuation
Financial
Performance
Financial risk - Cash flow debt coverage.
Emerson Electric Co. cash flow to debt ratio of 22.52% indicates that the company cannot generate enough cash to cover its debt over time. This level indicates weak financial health.
Financial risk - Healthy cash flow growth.
Emerson Electric Co.'s free cash flow has decreased -8.44% from $2.91G last year to $2.67G, signaling decreasing performance
Financial risk - Healthy debt to equity ratio.
Emerson Electric Co.'s debt to equity ratio is 0.69, which means that the company's assets are unhealthy financed, signaling financial risk. READ MORE: A ratio over 0.60 means the company finances its assets with debt, signaling financial risk. If ratio is negative, the company spent its own equity and risks bankruptcy
Financial risk - Healthy debt to equity ratio development.
Emerson Electric Co.'s debt has increased relative to shareholder equity from 0.39 last year to 0.69 today, signaling weakened financials
Financial stability - Net debt/EBITDA.
Emerson Electric Co. has a net debt to EBITDA ratio of 2.52x, which is below the 3.00x threshold, indicating healthy leverage and financial stability
Financial stability - ICR.
Emerson Electric Co.'s interest coverage ratio of 6.15 indicates that earnings with good margin can cover interest payments on company debt
Financial stability - Profit margin growth.
Emerson Electric Co.'s profit margin has increased (18.65%) in the last year from 11.25% to 13.35%, signaling increasing performance
Financial risk - Short term assets vs short term liabilities.
Emerson Electric Co.'s short-term liabilities of $9.80G exceed its short-term assets of $8.58G, signaling financial risk
Increasing performance - ROA.
Emerson Electric Co.'s return on assets of 5.81% is higher than the 5.00% threshold, indicating efficient asset utilization
Decreasing performance - Absolute return on equity.
Emerson Electric Co.'s return on equity of 12.11%, is lower than 15.00%, indicating bad performance
Increasing performance - Earnings quality.
Emerson Electric Co.'s operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation
Increasing performance - Earnings stability.
Emerson Electric Co. had positive net income in 5.00 out of 5 years, indicating stable and consistent earnings
Increasing performance - Free cash flow.
Emerson Electric Co. has positive free cash flow, indicating the company generates cash after capital expenditures
Increasing performance - FCF yield.
Emerson Electric Co. has a free cash flow yield of 3.32%, which is above the 2.00% threshold, indicating strong cash generation relative to market value
Increasing performance - Healthy earnings growth.
Emerson Electric Co.'s yearly earnings has increased 16.51% since last year from $1.97G to $2.29G, signaling increasing performance
Increasing performance - Healthy revenue growth.
Emerson Electric Co.'s yearly revenue has increased 3.00% since last year from $17.49G to $18.02G, signaling increasing performance
Increasing performance - ROIC.
ROIC 7.70% (Source: FMP key-metrics). In the 5–10% partial-credit band. Score: 1 of 2. This band sits within the typical US weighted-average cost of capital range. Methodology choice can change the conclusion: under FMP's invested-capital definition the company is at or near its cost of capital; under narrower operating-capital definitions the same company may score higher. Invested capital here includes equity, non-current liabilities, and short-term debt. Cash is not subtracted. See methodology.
Increasing performance - 3-year revenue CAGR.
Emerson Electric Co.'s 3-year revenue CAGR of 9.28% is positive, indicating growing revenue over the past 3 years
Increasing performance - Revenue consistency.
Emerson Electric Co. had revenue growth in 4.00 out of 5 years, indicating consistent revenue performance
Increasing performance - ROE consistency.
Emerson Electric Co. had positive ROE in 5.00 out of 5 years, indicating consistent and reliable returns on equity
Overvalued - DCF valuation.
Emerson Electric Co. is overvalued relative to its fair value price of 36.09 based on Discounted Cash Flow model
Overvalued - Earnings yield.
Emerson Electric Co. has an earnings yield of 3.04%, which is below the 4.00% threshold, indicating the stock may be expensive relative to its earnings
Overvalued - EBITDA valuation.
Emerson Electric Co. is overvalued relative to its fair value price of 38.52 based on EBITDA multiple model
Undervalued - EV/EBITDA.
Emerson Electric Co. has an EV/EBITDA ratio of 18.02x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings
Overvalued - PEG ratio value.
Emerson Electric Co. has a PEG-ratio over 1 which is considered overvalued
Undervalued - P/B ratio.
Emerson Electric Co. has a price-to-book ratio of 3.96x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value
Undervalued - P/S ratio.
Emerson Electric Co. has a price-to-sales ratio of 4.39x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue