Emerson Electric Co. (EMR) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-38.7%

$103.23

vs $168.45 price

Levered DCF

$47.16

After debt service

Piotroski score

9 / 9

Strong

Altman Z-score

4.62

Safe zone

Rating

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	32.23×	31.75×	25.77×	15.81×	24.46×	20.12×	17.87×	22.27×
P/B	3.64×	2.89×	2.68×	4.19×	5.7×	4.7×	5×	5.48×
P/S	4.1×	3.57×	3.66×	3.14×	4.36×	2.36×	2.24×	2.82×
EV / EBITDA	17.78×	16.68×	13.31×	14.97×	22.77×	13.1×	11.7×	14.54×
Gross margin	52.8%	50.8%	49.0%	45.7%	44.3%	41.8%	42.5%	42.7%
Operating margin	19.6%	15.2%	18.2%	17.1%	15.1%	16.6%	17.0%	17.0%
Net margin	12.7%	11.3%	87.2%	23.4%	17.8%	11.7%	12.6%	12.7%
Current ratio	0.88×	1.77×	2.75×	1.09×	1.35×	1.52×	1.19×	1.07×
Debt / equity	0.68×	0.39×	0.42×	1.04×	0.73×	0.94×	0.69×	0.53×
Interest coverage	9.13×	8.25×	10.57×	10.33×	11.8×	15.91×	15.52×	14.61×
Dividend yield	1.6%	1.9%	2.2%	2.8%	2.1%	3.1%	2.9%	2.5%
Payout ratio	52.0%	61.0%	9.1%	37.9%	52.5%	61.5%	52.4%	55.8%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	11.3%	9.1%	63.9%	31.2%	23.3%	23.4%	28.0%	24.6%
Return on invested capital	7.3%	5.4%	5.6%	6.1%	8.1%	13.0%	15.9%	15.5%
Return on assets	5.5%	4.4%	30.9%	9.1%	9.3%	8.6%	11.3%	10.8%
Free cash flow yield	3.6%	4.7%	0.5%	5.5%	5.3%	6.4%	5.9%	4.6%
Earnings yield	3.1%	3.1%	23.8%	7.4%	4.1%	5.0%	5.6%	4.5%
Enterprise value	$86B	$67.3B	$56.1B	$52.4B	$61.2B	$44.1B	$45.4B	$52.7B
Net debt / EBITDA	2.52×	1.18×	0.16×	2.57×	1.81×	1.35×	1.09×	1.01×
Cash conversion cycle (days)	98	97	95	82	81	69	60	59