Stock Analysis on Net

Emerson Electric Co. (NYSE:EMR)

This company has been moved to the archive! The financial data has not been updated since April 24, 2020.

Common Stock Valuation Ratios (Price Multiples) 

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Current Valuation Ratios

Emerson Electric Co., current price multiples

Microsoft Excel
Emerson Electric Co. Boeing Co. Caterpillar Inc. Eaton Corp. plc GE Aerospace Honeywell International Inc. Lockheed Martin Corp. RTX Corp. Capital Goods Industrials
Selected Financial Data
Current share price (P) $53.82
No. shares of common stock outstanding 597,475,300
Growth rate (g) 9.44%
 
Earnings per share (EPS) $3.86
Next year expected EPS $4.22
Operating profit per share $5.08
Sales per share $30.75
Book value per share (BVPS) $13.78
Valuation Ratios (Price Multiples)
Price to earnings (P/E) 13.94 17.82 44.27 20.97 26.05 18.32 49.64 51.76 67.17
Price to next year expected earnings 12.74 14.55 41.55 20.63 22.46 11.60 48.64 49.84 67.12
Price-earnings-growth (PEG) 1.48 0.79 6.77 12.76 1.63 0.32 24.18 13.46 774.15
Price to operating profit (P/OP) 10.60 14.21 36.67 35.14 20.81 14.90 44.54 23.28 26.55
Price to sales (P/S) 1.75 1.16 2.88 6.14 2.98 4.02 1.88 2.30 2.54 2.57
Price to book value (P/BV) 3.91 9.45 7.48 7.04 9.30 18.54 2.65 9.16 9.06

Based on: 10-K (reporting date: 2019-09-30).

If the company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.
Otherwise, if the company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.


Historical Valuation Ratios (Summary)

Emerson Electric Co., historical price multiples

Microsoft Excel
Sep 30, 2019 Sep 30, 2018 Sep 30, 2017 Sep 30, 2016 Sep 30, 2015 Sep 30, 2014
Price to earnings (P/E) 19.30 19.46 25.48 21.61 12.08 20.73
Price to operating profit (P/OP) 14.68 15.17 15.47 14.11 7.56 12.56
Price to sales (P/S) 2.42 2.46 2.53 2.43 1.47 1.81
Price to book value (P/BV) 5.41 4.79 4.44 4.67 4.05 4.40

Based on: 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30), 10-K (reporting date: 2015-09-30), 10-K (reporting date: 2014-09-30).

Valuation ratio Description The company
P/E ratio The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. Emerson Electric Co. P/E ratio decreased from 2017 to 2018 and from 2018 to 2019.
P/OP ratio Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. Emerson Electric Co. P/OP ratio decreased from 2017 to 2018 and from 2018 to 2019.
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. Emerson Electric Co. P/S ratio decreased from 2017 to 2018 and from 2018 to 2019.
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company required rate of return and its actual rate of return. Emerson Electric Co. P/BV ratio increased from 2017 to 2018 and from 2018 to 2019.

Price to Earnings (P/E)

Emerson Electric Co., historical P/E calculation, comparison to benchmarks

Microsoft Excel
Sep 30, 2019 Sep 30, 2018 Sep 30, 2017 Sep 30, 2016 Sep 30, 2015 Sep 30, 2014
No. shares of common stock outstanding1 609,153,835 626,158,598 641,819,838 642,776,971 654,557,141 693,634,810
Selected Financial Data (US$)
Net earnings common stockholders (in millions) 2,306 2,203 1,518 1,635 2,710 2,147
Earnings per share (EPS)2 3.79 3.52 2.37 2.54 4.14 3.10
Share price1, 3 73.07 68.46 60.26 54.97 50.01 64.15
Valuation Ratio
P/E ratio4 19.30 19.46 25.48 21.61 12.08 20.73
Benchmarks
P/E Ratio, Competitors5
Boeing Co.
Caterpillar Inc. 12.36
Eaton Corp. plc 18.06
GE Aerospace
Honeywell International Inc. 20.97
Lockheed Martin Corp. 19.87
RTX Corp. 24.41
P/E Ratio, Sector
Capital Goods 39.03
P/E Ratio, Industry
Industrials 49.05

Based on: 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30), 10-K (reporting date: 2015-09-30), 10-K (reporting date: 2014-09-30).

1 Data adjusted for splits and stock dividends.

2 2019 Calculation
EPS = Net earnings common stockholders ÷ No. shares of common stock outstanding
= 2,306,000,000 ÷ 609,153,835 = 3.79

3 Closing price as at the filing date of Emerson Electric Co. Annual Report.

4 2019 Calculation
P/E ratio = Share price ÷ EPS
= 73.07 ÷ 3.79 = 19.30

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/E ratio The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. Emerson Electric Co. P/E ratio decreased from 2017 to 2018 and from 2018 to 2019.

Price to Operating Profit (P/OP)

Emerson Electric Co., historical P/OP calculation, comparison to benchmarks

Microsoft Excel
Sep 30, 2019 Sep 30, 2018 Sep 30, 2017 Sep 30, 2016 Sep 30, 2015 Sep 30, 2014
No. shares of common stock outstanding1 609,153,835 626,158,598 641,819,838 642,776,971 654,557,141 693,634,810
Selected Financial Data (US$)
Earnings from continuing operations before interest and income taxes (in millions) 3,033 2,826 2,500 2,504 4,332 3,542
Operating profit per share2 4.98 4.51 3.90 3.90 6.62 5.11
Share price1, 3 73.07 68.46 60.26 54.97 50.01 64.15
Valuation Ratio
P/OP ratio4 14.68 15.17 15.47 14.11 7.56 12.56
Benchmarks
P/OP Ratio, Competitors5
Boeing Co.
Caterpillar Inc. 9.08
Eaton Corp. plc 13.95
GE Aerospace 9.22
Honeywell International Inc. 18.81
Lockheed Martin Corp. 14.49
RTX Corp. 15.07
P/OP Ratio, Sector
Capital Goods 17.55
P/OP Ratio, Industry
Industrials 19.39

Based on: 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30), 10-K (reporting date: 2015-09-30), 10-K (reporting date: 2014-09-30).

1 Data adjusted for splits and stock dividends.

2 2019 Calculation
Operating profit per share = Earnings from continuing operations before interest and income taxes ÷ No. shares of common stock outstanding
= 3,033,000,000 ÷ 609,153,835 = 4.98

3 Closing price as at the filing date of Emerson Electric Co. Annual Report.

4 2019 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 73.07 ÷ 4.98 = 14.68

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/OP ratio Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. Emerson Electric Co. P/OP ratio decreased from 2017 to 2018 and from 2018 to 2019.

Price to Sales (P/S)

Emerson Electric Co., historical P/S calculation, comparison to benchmarks

Microsoft Excel
Sep 30, 2019 Sep 30, 2018 Sep 30, 2017 Sep 30, 2016 Sep 30, 2015 Sep 30, 2014
No. shares of common stock outstanding1 609,153,835 626,158,598 641,819,838 642,776,971 654,557,141 693,634,810
Selected Financial Data (US$)
Net sales (in millions) 18,372 17,408 15,264 14,522 22,304 24,537
Sales per share2 30.16 27.80 23.78 22.59 34.07 35.37
Share price1, 3 73.07 68.46 60.26 54.97 50.01 64.15
Valuation Ratio
P/S ratio4 2.42 2.46 2.53 2.43 1.47 1.81
Benchmarks
P/S Ratio, Competitors5
Boeing Co. 2.34
Caterpillar Inc. 1.48
Eaton Corp. plc 1.87
GE Aerospace 1.18
Honeywell International Inc. 3.51
Lockheed Martin Corp. 2.07
RTX Corp. 1.75
P/S Ratio, Sector
Capital Goods 1.92
P/S Ratio, Industry
Industrials 1.88

Based on: 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30), 10-K (reporting date: 2015-09-30), 10-K (reporting date: 2014-09-30).

1 Data adjusted for splits and stock dividends.

2 2019 Calculation
Sales per share = Net sales ÷ No. shares of common stock outstanding
= 18,372,000,000 ÷ 609,153,835 = 30.16

3 Closing price as at the filing date of Emerson Electric Co. Annual Report.

4 2019 Calculation
P/S ratio = Share price ÷ Sales per share
= 73.07 ÷ 30.16 = 2.42

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. Emerson Electric Co. P/S ratio decreased from 2017 to 2018 and from 2018 to 2019.

Price to Book Value (P/BV)

Emerson Electric Co., historical P/BV calculation, comparison to benchmarks

Microsoft Excel
Sep 30, 2019 Sep 30, 2018 Sep 30, 2017 Sep 30, 2016 Sep 30, 2015 Sep 30, 2014
No. shares of common stock outstanding1 609,153,835 626,158,598 641,819,838 642,776,971 654,557,141 693,634,810
Selected Financial Data (US$)
Common stockholders’ equity (in millions) 8,233 8,947 8,718 7,568 8,081 10,119
Book value per share (BVPS)2 13.52 14.29 13.58 11.77 12.35 14.59
Share price1, 3 73.07 68.46 60.26 54.97 50.01 64.15
Valuation Ratio
P/BV ratio4 5.41 4.79 4.44 4.67 4.05 4.40
Benchmarks
P/BV Ratio, Competitors5
Boeing Co.
Caterpillar Inc. 5.16
Eaton Corp. plc 2.48
GE Aerospace 3.66
Honeywell International Inc. 6.97
Lockheed Martin Corp. 39.60
RTX Corp. 3.24
P/BV Ratio, Sector
Capital Goods 6.91
P/BV Ratio, Industry
Industrials 6.61

Based on: 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30), 10-K (reporting date: 2015-09-30), 10-K (reporting date: 2014-09-30).

1 Data adjusted for splits and stock dividends.

2 2019 Calculation
BVPS = Common stockholders’ equity ÷ No. shares of common stock outstanding
= 8,233,000,000 ÷ 609,153,835 = 13.52

3 Closing price as at the filing date of Emerson Electric Co. Annual Report.

4 2019 Calculation
P/BV ratio = Share price ÷ BVPS
= 73.07 ÷ 13.52 = 5.41

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company required rate of return and its actual rate of return. Emerson Electric Co. P/BV ratio increased from 2017 to 2018 and from 2018 to 2019.