Emerson Electric Co. (EMR) is a publicly traded company in the Industrials — Industrial - Machinery industry listed on NYSE. This overview shows the latest price, key valuation ratios, profitability metrics and financial-health indicators used by fundamental investors.
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.
Is Emerson Electric Co. stock overvalued or undervalued in 2026?
Emerson Electric Co. (EMR) trades at 36.1× earnings (P/E), above the median of the 297 industrials companies over $2bn in Kaplio's universe. At the decade median (25.1×) $115 (-30 %); at its sector median (25.8×) $118 (-28 %).
Kaplio overview: Emerson Electric Co.
Market cap $92B · 52 weeks $123 – $171 (3 % below the high) · P/E 36.1× · 2027 expected P/E 22.6× · Dividend 1.4 % · 11 years rising · Next earnings November 4, 2026 · expected EPS $1.85 · Closing price, Oct 30 · accounts published Aug 4.
- Valuation: P/E 36.1× (expensive).
- Business: ROIC 8 % (weak).
- Balance sheet: Net debt/EBITDA 2.5× (solid).
- Earnings: 7 of 8 (on track).
What would it be worth at its usual multiples?
At the decade median (25.1×) $115 (-30 %); at its sector median (25.8×) $118 (-28 %). Implied price from applying the reference multiples to today's earnings (or book value, or FFO) per share. Not a fair value: it is where the stock would trade at its usual multiples.
What matters in industrials: 5 of 10 pass
- 5y revenue growth 2.8 %, fails.
- ROIC 7.9 %, fails.
- Capex / Revenue 2.4 %, fails.
- P/E vs own 10y history 36.1×, fails.
- Cycle-adjusted EV/EBITDA 19.5×, fails.
- Operating margin 19.6 %, passes.
- FCF conversion 116.3 %, passes.
- Net debt / EBITDA 2.5×, passes.
- Altman Z-Score 4.1, passes.
- Piotroski F-Score 7 de 9, passes.
Against its peers (reference peers) — Emerson Electric Co.: P/E 36.1×; EV/EBITDA 19.5×; ROIC 7.9 %; $91.9B. Parker-Hannifin Corporation (P/E 31.6×; EV/EBITDA 20.6×; ROIC 13.9 %; $113B), Rockwell Automation, Inc. (P/E 41.0×; EV/EBITDA 29.2×; ROIC 19.7 %; $48.5B), Dover Corporation (P/E 24.3×; EV/EBITDA 15.1×; ROIC 9.9 %; $27.6B).
Expensive or cheap against its last ten years?
P/E at each close: today 36.1× · median 25.1× · minimum 11.8× · maximum 43.4× · cheap below 21.9× · expensive above 31.5×. It has been cheaper than today 92% of the time over its last ten years.
Dividend
solid · Yield 1.4 % ($2.12 per share in 2025) · Years raising it ≥ 11 · 5-year growth +1 % a year · Free cash flow coverage 1.6× · With $1,000 invested today you'd collect $13.50 a year ($1.12 a month).
Kaplio's reading: Emerson Electric Co.
Updated on October 25, 2026 · accounts published on August 4, 2026
A highly profitable industrial with fast-growing earnings
Emerson Electric trades at a P/E of 36.1 over the last 12 months, 44 % above its 10-year median of 25.1 and 40 % above its sector median.
- Is Emerson Electric expensive or cheap? Its P/E of 36.1 is higher than in 92 % of the last decade and 40 % above the sector median of 25.8.
- How is the business doing? EPS rose 18 % in the last 12 months on 3 % revenue growth, as the operating margin hit 20.1 % against a 17.6 % average.
- How strong is the balance sheet? Net debt was $22.39 per share in fiscal 2025, 2.5× EBITDA, and the dividend has risen for 11 consecutive years.
- What to expect from the next earnings? Emerson Electric reports on November 4, 2026, with analysts expecting EPS of $1.85, and it beat in 7 of the last 8 quarters.
- Does it turn its margin into cash, and what cycle multiple does it trade at? Free cash flow was 116 % of net income in fiscal 2025, while EV/EBITDA of 19.5× is above its seven-year average of 15.8×.
Is Emerson Electric expensive or cheap?
Over the last 12 months Emerson Electric has traded at a P/E of 36.1. That is 44 % above its ten-year median of 25.1 and not far from the decade high of 43.4, against a low of 11.8. Its multiple was lower than today in 92 % of the last decade. The sector median P/E is 25.8, so Emerson Electric carries a 40 % premium. EV/EBITDA of 19.5× and a free cash flow yield of 3.3 % send the same signal. The stock is up 22 % in 12 months and sits 3 % below its 52-week high of $170.74, so the market is already paying for the earnings growth.
How is the business doing?
Emerson Electric is earning more from each dollar of sales. Over the last 12 months revenue grew 3.0 % while EPS rose 17.8 %. The operating margin reached 20.1 %, above the 19.6 % of fiscal 2025 and the 2014-2025 average of 17.6 %. Net margin is 13.8 % and ROE 12.7 %. The weak spot is return on capital: ROIC of 7.9 % is 1.0 point below the sector median of 8.9 %. It topped 10 % in only 5 of the last 10 fiscal years, with a low of 5.4 % in 2024. Earnings are growing much faster than sales.
How strong is the balance sheet?
Debt is meaningful but manageable. Net debt of 2.5× EBITDA in fiscal 2025 stays under the 3× that industrials treat as healthy. It equals 13.6 % of the current share price. The Altman Z of 4.1 over the last 12 months sits well inside the safe zone above 2.99, and debt to equity is 0.68. Liquidity is the tighter point: a current ratio of 0.90 means short-term liabilities exceed short-term assets. Shareholders get a 1.4 % dividend yield. The dividend has been raised for 11 consecutive fiscal years through 2025, and a payout of 52 % of fiscal 2025 earnings leaves room to keep raising it.
What to expect from the next earnings?
Emerson Electric reports on November 4, 2026, and the consensus expects EPS of $1.85 for the quarter. The track record is good: it has beaten EPS estimates in 7 of the last 8 quarters. The latest beat came on August 4, 2026, with $1.71 against $1.68 expected, 1.8 % ahead. Expectations are edging up. The 2027 EPS consensus rose 0.5 % in the last 30 days, from $7.28 to $7.31, while revenue estimates barely moved. Of 43 analysts, 23 rate it a buy, 17 a hold and 3 a sell. With the P/E near the top of its decade range, a weak quarter would leave little margin for error.
Does it turn its margin into cash, and what cycle multiple does it trade at?
Industrials are semi-cyclical, so the sector judges them on order books, operating margin and cash conversion rather than on a single year's earnings. Emerson Electric does well on cash. Free cash flow equalled 116 % of net income in fiscal 2025, above the 85 % healthy mark, and its 19.6 % operating margin clears the 12 % bar. Growth is the weak point: revenue per share grew 2.8 % a year over fiscal 2020-2025, short of the 6 % threshold. Capex was 2.4 % of revenue in fiscal 2025, below the usual 4 % to 8 % range. Both P/E and EV/EBITDA are more than 10 % above their own long-term averages, which the sector treats as expensive.
How this was prepared: the data comes from companies' official filings, collected by a professional provider, and from Kaplio's analysis engine (trailing-12-month ratios, 10 years of history and sector medians computed across US-listed companies). The text is written from that data alone, every figure is checked against it before publication, and it is reviewed when the company reports results. This is not investment advice.
Investor methods verdict
Would Buffett approve Emerson Electric today?
The Buffett Method would wait for a better price for Emerson Electric: it yields 2.5% before tax; it asks for 10%. Business quality: 79 out of 100 (price not included). Kaplio assessment with data from the week of 2026-10-26; not investment advice.
Profitability
| Return on Equity | 12.69% |
| Return on Invested Capital | 7.93% |
| Return on Assets | 6.11% |
| Gross Margin | 53.16% |
| Operating Margin | 20.11% |
| Net Margin | 13.83% |
Financial Health
| Debt / Equity | 0.68 |
| Current Ratio | 0.90 |
| Piotroski F-Score | 7 |
| Altman Z-Score | 4.07 |
Price Performance
| 1 month | +3.94% |
| 3 months | +10.01% |
| Year-to-date | +24.19% |
| 1 year | +18.09% |
| 3 years | +83.93% |
| 5 years | +68.36% |
| 10 years | +229.38% |
Dividend History
Paid in the last 12 months: $2.2200 per share in 4 payments.
| Date | Amount |
|---|---|
| 2026-08-14 | $0.5550 |
| 2026-05-15 | $0.5550 |
| 2026-02-13 | $0.5550 |
| 2025-11-14 | $0.5550 |
| 2025-08-15 | $0.5275 |
| 2025-05-16 | $0.5275 |
| 2025-02-14 | $0.5275 |
| 2024-11-15 | $0.5275 |
| 2024-08-16 | $0.5250 |
| 2024-05-16 | $0.5250 |
Amounts adjusted for stock splits.
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Explore sector: Industrials · Industrial - Machinery
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