Emerson Electric Co.

OVERVALUEDEMR · NYSE · Industrials
EMR·NYSE·Industrials
OVERVALUED
Emerson Electric Co.
15.9%downside
MARKET PRICE
$139.99
FAIR PRICE
$117.73
MARGIN
$22.26
UNDERVALUEDFAIROVERVALUED
P/E RATIO
34.2x
DIV. YIELD
1.56%
ROE
11.5%
MARKET CAP
$78B
FPI
fairpriceindex.com

FAIR PRICE VALUATION

15.9%downside

Updated daily

Model: DCF 50% · Relative 30% · Consensus 20%

MARKET PRICE

$139.99

FAIR PRICE

$117.73

MARGIN

$22.26

UNDERVALUEDFAIROVERVALUED

P/E Ratio

34.2x

What is P/E? →

Div. Yield

1.56%

ROE

11.5%

Average

Market Cap

$78B

Large-cap

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FPI RATING

4.0/ 10

Strong profitability and stable earnings and revenue, but below-average fundamental quality and expensive valuation relative to fundamentals.

Analytical data, not an investment recommendation. Updated daily.

How we calculate this ↗

MARGIN OF SAFETY

A 20% margin of safety below fair value — the conservative entry level for risk-aware investors.

$94.18CONSERVATIVE ENTRY
$117.73FAIR PRICE
$139.99MARKET PRICE

SAFETY MARGIN

20%

Below fair value

ENTRY LEVEL

$94.18

Fair price × 0.80

DISTANCE

32.7%

Price to entry level

At the current price of $139.99, EMR trades 32.7% above the conservative entry level of $94.18. This entry level represents a 20% margin of safety below the calculated fair price of $117.73 — a buffer that accounts for estimation uncertainty in the valuation model.

Margin of safety is a risk management concept, not an investment recommendation. The 20% threshold follows Benjamin Graham's value investing framework. Fair price and entry levels are model-based estimates updated daily. Learn more about Margin of Safety ↗

VALUATION HISTORY

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P/E RATIO HISTORY

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METHODOLOGY

How we calculate EMR's fair price

Emerson Electric Co.'s fair price of $117.73 is derived from a blended model that combines DCF analysis (50%), relative valuation against Industrials peers using metrics like P/E and EV/EBITDA (30%), and analyst consensus (20%). At the current market price of $139.99, EMR trades 15.9% above its calculated fair value.

DCF MODEL · 50%

Discounted free cash flow analysis based on projected cash flows, discounted at a rate reflecting EMR's risk profile.

RELATIVE · 30%

Comparing EMR's valuation multiples against Industrials peers to determine if the stock is over or undervalued relative to its industry.

ANALYST · 20%

Aggregated analyst price targets for EMR, weighted by recency and analyst accuracy.

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Want to test your own assumptions? Use our free calculators to estimate EMR's fair value with your own inputs.

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FAQ

What is the fair price of EMR?+

Based on our blended model combining DCF analysis (50%), relative valuation against Industrials peers (30%), and analyst consensus (20%), the fair price for Emerson Electric Co. is $117.73. At the current market price of $139.99, EMR trades 15.9% above its calculated fair value.

Is EMR overvalued or undervalued?+

Emerson Electric Co. is currently overvalued based on our valuation model. The stock trades at $139.99, which is 15.9% above the fair price of $117.73. The P/E ratio of 34.2x is a key metric in the valuation.

What is the margin of safety for EMR?+

With a 20% margin of safety applied to the fair price of $117.73, the conservative entry level for EMR is $94.18. At the current market price of $139.99, the stock trades 32.7% above this entry level. Margin of safety is a risk management concept from Benjamin Graham's value investing framework, not an investment recommendation.

How often is EMR's fair price updated?+

We update fair price calculations for EMR daily after market close. The current fair price of $117.73 incorporates the latest market data and sector multiples.

What factors affect EMR's fair price calculation?+

EMR's fair price of $117.73 is derived from DCF analysis (50% weight), relative valuation against Industrials peers (30% weight), and analyst consensus (20% weight). Key metrics include P/E of 34.2x, ROE of 11.5%, and dividend yield of 1.56%.

Is EMR a good buy right now?+

At $139.99, EMR trades 15.9% above our fair value estimate of $117.73. The stock is currently overvalued. ROE stands at 11.5% (average). Fair Price Index provides valuation data — always do your own research before investing.

Does EMR pay dividends?+

EMR has a dividend yield of 1.56%.

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Fair Price Index is for informational purposes only and does not constitute investment advice. Fair value calculations are model-based estimates and may not reflect actual market conditions. Always conduct your own research before making investment decisions.