Intrinsiqq
Emerson Electric Co. logoEmerson Electric Co.EMR
$161.46-0.43%
Emerson Electric Co. logo

Emerson Electric Co.

EMR

$161.46

-$0.69 (-0.43%)

⊜ Compare
ProfitabilityStrong marginsGrowthModeratingCash FlowStrong conversionValuationNot cheap
What stands out

20.23% operating margin is above average. ROIC at 9.21%. Note that capital returns lag the margin, the business may be capital-intensive despite high margins.

What's changing

Revenue growth slowed to 3.0%, essentially flat. This is a business that needs a catalyst.

What deserves caution

At 35x earnings, the current multiple leaves limited room for execution misses or growth deceleration. Net debt of $12.21B represents 4.6x FCF, leverage limits flexibility.

Valuation context

35.3x earnings, 26.0x FCF. Not cheap, the quality is already reflected in the price. Upside from here requires either margin expansion or growth re-acceleration, not just continuation.

Price History

+26.5%

Valuation & Multiples

Based on TTM earnings · Diluted shares

Market Cap$90.06B
EPS$4.57
P/E35.35
P/FCF26.03
EV/EBITDA20.15
FCF Yield3.8%
Div. Yield1.37%
Net Debt/FCF3.4x
52-Week Range
$123.30$164.38

Profitability & Returns

Revenue (TTM)

$18.64B

▲ +3.0% YoY

Net Income (TTM)

$2.58B

▲ +16.5% YoY

Op. Margin

20.96%

▲ +3.3pp YoY

ROIC

9.36%

▲ +0.6pp YoY

Cash Flow & Balance Sheet

FCF (TTM)

$3.46B

▼ -8.4% YoY

Op. Cash Flow (TTM)

$3.91B

▼ -7.0% YoY

Net Debt

$11.62B

Cash & Equiv.

$2.18B

5Y CAGR: +1.4%

5Y CAGR: +0.9%

Continue Research

SourceComputed from the 10-Q filed 30 Jun 2026, covering the period ending 30 Jun 2026, as reported to the SEC. Data last refreshed 5 Aug 2026. How this is calculated.

Price from market data, last close as of 16 Oct 2026. Fiscal year ends Sep. Sector medians are approximate S&P 500 benchmarks and update periodically.

Is Emerson Electric (EMR) overvalued?

At a P/E of 35.3 and a price-to-free-cash-flow of 26.0, Emerson Electric (EMR) trades above a two-stage DCF intrinsic value of about $86.15 per share, so at $161.46 the stock looks overvalued (46.6% above estimated intrinsic value). A high multiple is not the same as overvalued: fast-growing, high-quality businesses can deserve a premium. See the general approach in how to tell if a stock is overvalued.

On quality, Emerson Electric scores 63/100 on Intrinsiqq's quality scorecard (a solid business on these measures), weighing growth, margins, returns on capital, share count, and balance-sheet strength. It currently yields about 1.4%; see dividend safety for coverage and history. All figures are computed from SEC filings; read the full methodology, or see how the market compares in our US profitability statistics. This is analysis, not investment advice.

Frequently asked

What is Emerson Electric's fair value?+

Intrinsiqq's two-stage DCF estimates an intrinsic value of about $86.15 per share for EMR, projecting its recent free cash flow forward with a growth rate that fades toward a long-run rate and discounting it back to today. Applying a 25% margin of safety gives a more conservative fair-value entry around $64.61. At today's $161.46, that puts the stock about 46.6% above estimated intrinsic value. The result is sensitive to the growth and discount-rate inputs, so it is best to run conservative, base and optimistic cases. You can adjust all of them yourself with the sliders on the DCF tab.

Is Emerson Electric a high-quality business?+

Emerson Electric scores 63 out of 100 on Intrinsiqq's quality score, a weighted blend of 8 metrics each scored 0 to 100, which makes it a solid business on these measures. Recent fundamentals include a 21.0% operating margin and a 9.4% return on invested capital. The score weighs revenue and free-cash-flow growth, operating margins, return on invested capital, share-count change, and balance-sheet strength, all computed from SEC filings, not opinion. Because valuation only means something relative to quality, the full metric-by-metric breakdown is on the quality scorecard.

Does Emerson Electric (EMR) pay a dividend, and how much?+

Yes, Emerson Electric pays a regular dividend of about $2.20 per share per year (typically in quarterly installments), a yield of roughly 1.4% at the current price. That is a payout ratio of about 47.8% of earnings, so the dividend is well covered. A low headline yield is not the same as a weak dividend: what matters is how well earnings and free cash flow cover the payout and whether it is growing, not the percentage alone. For EMR's full payout history, growth streak and dividend-safety score, see the dividends tab.

Is Emerson Electric a good stock to buy right now?+

That depends on valuation and quality together, not either alone. EMR currently trades above its estimated intrinsic value and scores 63/100 on quality (solid). It also yields about 1.4%. A cheap price is only a bargain if the business is durable, and a premium can be justified by genuine quality, so the two questions, "is it cheap?" and "is it good?", only make sense side by side. Read the valuation against the quality scorecard, run the DCF on your own assumptions, and decide for yourself. This is analysis from SEC filings, not investment advice.

Related stocks: Electronic & Other Electrical Equipment (No Computer Equip)

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Data sourced from SEC EDGAR filings and third-party price providers. Scores, valuations, and metrics are algorithmic estimates. This is not investment advice. See our Terms and Methodology.

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