Emerson Electric Stock Beta

EMR Stock

USD 128.27 0.83 0.64%

Emerson Electric fundamentals help investors to digest information that contributes to Emerson Electric's financial success or failures. It also enables traders to predict the movement of Emerson Stock. The fundamental analysis module provides a way to measure Emerson Electric's intrinsic value by examining its available economic and financial indicators, including the cash flow records, the balance sheet account changes, the income statement patterns, and various microeconomic indicators and financial ratios related to Emerson Electric stock.

Short Long Term Debt Total Total Assets

This module does not cover all equities due to inconsistencies in global equity categorizations. Continue to Equity Screeners to view more equity screening tools.

Emerson Electric Company Beta Analysis

Emerson Electric's Beta is one of the most important measures of equity market volatility. Beta can be thought of as asset elasticity or sensitivity to market. In other words, it is a number that shows the relationship of an equity instrument to the financial market in which this instrument is traded. For example, if Beta of equity is 2, it is expected to significantly outperform market when the market is going up and significantly underperform when the market is going down. Similarly, Beta of 1 indicates that an asset and market will generate similar returns over time.

Beta

Covariance

Variance

More About Beta | All Equity Analysis

Current Emerson Electric Beta

1.29

Most of Emerson Electric's fundamental indicators, such as Beta, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Emerson Electric is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.

Emerson Beta Driver Correlations

Understanding the fundamental principles of building solid financial models for Emerson Electric is extremely important. It helps to project a fair market value of Emerson Stock properly, considering its historical fundamentals such as Beta. Since Emerson Electric's main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of Emerson Electric's historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of Emerson Electric's interrelated accounts and indicators.

	Total Assets	Total Stockholder Equity	Net Debt	Retained Earnings	Net Receivables	Total Liab	Total Current Assets	Short Term Debt	Intangible Assets	Accounts Payable	Current Deferred Revenue	Good Will	Common Stock	Long Term Debt	Treasury Stock	Property Plant Equipment	Net Tangible Assets	Total Permanent Equity	Long Term Debt Total	Capital Surpluse	Accumulated Depreciation	Short Long Term Debt	Cash And Equivalents	Net Invested Capital	Net Working Capital	Capital Stock
Total Assets		0.95	0.24	0.95	0.15	0.62	0.55	-0.15	0.91	-0.01	0.22	0.96	0.53	0.74	-0.64	-0.08	-0.31	0.53	0.7	-0.5	0.65	-0.07	0.76	0.71	0.73	-0.65
Total Stockholder Equity	0.95		-0.04	0.92	0.07	0.4	0.48	-0.36	0.9	-0.03	0.22	0.92	0.41	0.6	-0.49	-0.09	-0.19	0.47	0.59	-0.49	0.75	-0.27	0.89	0.73	0.87	-0.73
Net Debt	0.24	-0.04		0.2	0.24	0.61	0.01	0.49	0.24	0.1	-0.18	0.27	0.44	0.46	-0.51	0.3	-0.44	0.31	0.38	0.05	0.01	0.55	-0.31	0.0	-0.36	0.0
Retained Earnings	0.95	0.92	0.2		0.04	0.58	0.49	-0.21	0.88	-0.06	0.06	0.89	0.57	0.71	-0.78	-0.06	-0.35	0.71	0.66	-0.35	0.64	-0.01	0.73	0.67	0.7	-0.64
Net Receivables	0.15	0.07	0.24	0.04		0.5	0.57	0.58	-0.13	0.96	0.48	0.05	0.59	-0.09	-0.03	0.52	0.53	-0.41	-0.26	0.2	-0.14	-0.23	-0.18	-0.24	-0.17	0.11
Total Liab	0.62	0.4	0.61	0.58	0.5		0.78	0.46	0.35	0.33	0.25	0.48	0.87	0.74	-0.73	0.0	-0.14	0.31	0.57	-0.06	-0.06	0.26	0.08	0.37	0.05	0.08
Total Current Assets	0.55	0.48	0.01	0.49	0.57	0.78		0.35	0.17	0.48	0.57	0.34	0.74	0.47	-0.42	-0.17	0.29	-0.01	0.31	-0.14	-0.1	-0.12	0.29	0.38	0.3	0.1
Short Term Debt	-0.15	-0.36	0.49	-0.21	0.58	0.46	0.35		-0.39	0.52	0.33	-0.28	0.39	-0.13	-0.09	0.11	0.2	-0.32	-0.28	0.02	-0.46	0.43	-0.53	-0.32	-0.53	0.43
Intangible Assets	0.91	0.9	0.24	0.88	-0.13	0.35	0.17	-0.39		-0.27	0.01	0.97	0.27	0.68	-0.52	-0.03	-0.49	0.61	0.72	-0.55	0.83	-0.08	0.79	0.73	0.75	-0.81
Accounts Payable	-0.01	-0.03	0.1	-0.06	0.96	0.33	0.48	0.52	-0.27		0.37	-0.12	0.5	-0.27	0.03	0.61	0.65	-0.43	-0.45	0.38	-0.19	-0.27	-0.25	-0.41	-0.23	0.15
Current Deferred Revenue	0.22	0.22	-0.18	0.06	0.48	0.25	0.57	0.33	0.01	0.37		0.13	0.27	-0.01	0.23	-0.27	0.38	-0.42	-0.08	-0.46	0.08	-0.24	0.28	0.18	0.3	-0.07
Good Will	0.96	0.92	0.27	0.89	0.05	0.48	0.34	-0.28	0.97	-0.12	0.13		0.36	0.72	-0.52	-0.01	-0.4	0.49	0.74	-0.56	0.74	-0.14	0.77	0.74	0.73	-0.73
Common Stock	0.53	0.41	0.44	0.57	0.59	0.87	0.74	0.39	0.27	0.5	0.27	0.36		0.52	-0.69	0.12	0.05	0.35	0.31	0.13	0.01	0.17	0.08	0.29	0.07	0.01
Long Term Debt	0.74	0.6	0.46	0.71	-0.09	0.74	0.47	-0.13	0.68	-0.27	-0.01	0.72	0.52		-0.7	-0.21	-0.46	0.55	0.97	-0.3	0.25	0.11	0.45	0.74	0.4	-0.19
Treasury Stock	-0.64	-0.49	-0.51	-0.78	-0.03	-0.73	-0.42	-0.09	-0.52	0.03	0.23	-0.52	-0.69	-0.7		-0.01	0.48	-0.81	-0.58	-0.05	-0.16	-0.37	-0.19	-0.34	-0.15	0.17
Property Plant Equipment	-0.08	-0.09	0.3	-0.06	0.52	0.0	-0.17	0.11	-0.03	0.61	-0.27	-0.01	0.12	-0.21	-0.01		0.31	-0.16	-0.26	0.47	0.12	-0.32	-0.23	-0.45	-0.23	-0.16
Net Tangible Assets	-0.31	-0.19	-0.44	-0.35	0.53	-0.14	0.29	0.2	-0.49	0.65	0.38	-0.4	0.05	-0.46	0.48	0.31		-0.68	-0.53	0.32	-0.19	-0.51	-0.06	-0.32	-0.01	0.18
Total Permanent Equity	0.53	0.47	0.31	0.71	-0.41	0.31	-0.01	-0.32	0.61	-0.43	-0.42	0.49	0.35	0.55	-0.81	-0.16	-0.68		0.53	0.0	0.39	0.46	0.31	0.38	0.28	-0.39
Long Term Debt Total	0.7	0.59	0.38	0.66	-0.26	0.57	0.31	-0.28	0.72	-0.45	-0.08	0.74	0.31	0.97	-0.58	-0.26	-0.53	0.53		-0.39	0.34	0.06	0.52	0.77	0.47	-0.27
Capital Surpluse	-0.5	-0.49	0.05	-0.35	0.2	-0.06	-0.14	0.02	-0.55	0.38	-0.46	-0.56	0.13	-0.3	-0.05	0.47	0.32	0.0	-0.39		-0.46	0.08	-0.59	-0.66	-0.57	0.43
Accumulated Depreciation	0.65	0.75	0.01	0.64	-0.14	-0.06	-0.1	-0.46	0.83	-0.19	0.08	0.74	0.01	0.25	-0.16	0.12	-0.19	0.39	0.34	-0.46		-0.23	0.81	0.46	0.8	-0.99
Short Long Term Debt	-0.07	-0.27	0.55	-0.01	-0.23	0.26	-0.12	0.43	-0.08	-0.27	-0.24	-0.14	0.17	0.11	-0.37	-0.32	-0.51	0.46	0.06	0.08	-0.23		-0.4	-0.09	-0.44	0.22
Cash And Equivalents	0.76	0.89	-0.31	0.73	-0.18	0.08	0.29	-0.53	0.79	-0.25	0.28	0.77	0.08	0.45	-0.19	-0.23	-0.06	0.31	0.52	-0.59	0.81	-0.4		0.72	1.0	-0.79
Net Invested Capital	0.71	0.73	0.0	0.67	-0.24	0.37	0.38	-0.32	0.73	-0.41	0.18	0.74	0.29	0.74	-0.34	-0.45	-0.32	0.38	0.77	-0.66	0.46	-0.09	0.72		0.69	-0.38
Net Working Capital	0.73	0.87	-0.36	0.7	-0.17	0.05	0.3	-0.53	0.75	-0.23	0.3	0.73	0.07	0.4	-0.15	-0.23	-0.01	0.28	0.47	-0.57	0.8	-0.44	1.0	0.69		-0.77
Capital Stock	-0.65	-0.73	0.0	-0.64	0.11	0.08	0.1	0.43	-0.81	0.15	-0.07	-0.73	0.01	-0.19	0.17	-0.16	0.18	-0.39	-0.27	0.43	-0.99	0.22	-0.79	-0.38	-0.77

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In a nutshell, Beta is a measure of individual stock risk relative to the overall volatility of the stock market. and is calculated based on very sound finance theory - Capital Assets Pricing Model (CAPM).However, since Beta is calculated based on historical price movements it may not predict how a firm's stock is going to perform in the future.

Competition

Predict Emerson Electric

In accordance with the recently published financial statements, Emerson Electric has a Beta of 1.292. This is 5.69% lower than that of the Electrical Equipment sector and significantly higher than that of the Industrials industry. The beta for all United States stocks is notably lower than that of the firm.

Emerson Beta Peer Comparison

Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Emerson Electric's direct or indirect competition against its Beta to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Emerson Electric could also be used in its relative valuation, which is a method of valuing Emerson Electric by comparing valuation metrics of similar companies.

Emerson Electric is currently under evaluation in beta category among its peers.

Emerson Electric ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Emerson Electric's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Emerson Electric's managers, analysts, and investors.

Environmental

Governance

Social

Emerson Electric Institutional Holders

Institutional Holdings refers to the ownership stake in Emerson Electric that is held by large financial organizations, pension funds or endowments. Institutions may purchase large blocks of Emerson Electric's outstanding shares and can exert considerable influence upon its management. Institutional holders may also work to push the share price higher once they own the stock. Extensive social media coverage, TV shows, articles in high-profile magazines, and presentations at investor conferences help move the stock higher, increasing Emerson Electric's value.

		Shares
Northern Trust Corp	2024-09-30	6.3 M
State Farm Mutual Automobile Ins Co	2024-09-30	5.8 M
Nuveen Asset Management, Llc	2024-06-30	5.2 M
Newport Trust Co.	2024-09-30	5.1 M
Bank Of New York Mellon Corp	2024-06-30	4.9 M
Ubs Group Ag	2024-06-30	4.7 M
Jpmorgan Chase & Co	2024-06-30	4.6 M
Schroder Investment Management Group	2024-06-30	4.5 M
Legal & General Group Plc	2024-06-30	4.5 M
Vanguard Group Inc	2024-09-30	53.2 M
Blackrock Inc	2024-06-30	35.3 M

As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Emerson Electric will likely underperform.

Emerson Fundamentals

	Return On Equity	0.0593
	Return On Asset	0.0434
	Profit Margin	0.11 %
	Operating Margin	0.18 %
	Current Valuation	78.22 B
	Shares Outstanding	570.2 M
	Shares Owned By Insiders	0.34 %
	Shares Owned By Institutions	80.02 %
	Number Of Shares Shorted	9.29 M
	Price To Earning	17.43 X
	Price To Book	3.40 X
	Price To Sales	4.21 X
	Revenue	17.49 B
	Gross Profit	7.43 B
	EBITDA	3.88 B
	Net Income	1.62 B
	Cash And Equivalents	8.05 B
	Cash Per Share	3.05 X
	Total Debt	7.69 B
	Debt To Equity	0.67 %
	Current Ratio	1.09 X
	Book Value Per Share	37.95 X
	Cash Flow From Operations	3.33 B
	Short Ratio	4.07 X
	Earnings Per Share	2.82 X
	Price To Earnings To Growth	2.30 X
	Target Price	134.62
	Number Of Employees	73 K
	Beta	1.29
	Market Capitalization	73.61 B
	Total Asset	44.25 B
	Retained Earnings	40.83 B
	Working Capital	8.79 B
	Current Asset	4.96 B
	Current Liabilities	4.4 B
	Annual Yield	0.02 %
	Five Year Return	2.68 %
	Net Asset	44.25 B
	Last Dividend Paid	2.1

About Emerson Electric Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Emerson Electric's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Emerson Electric using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Emerson Electric based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.

Please read more on our fundamental analysis page.

Pair Trading with Emerson Electric

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Emerson Electric position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Emerson Electric will appreciate offsetting losses from the drop in the long position's value.

Moving together with Emerson Stock

0.69	B	Barnes Group	Pair Corr
0.95	CR	Crane Company	Pair Corr
0.84	IR	Ingersoll Rand Sell-off Trend	Pair Corr

Moving against Emerson Stock

0.66	CVV	CVD Equipment	Pair Corr
0.66	CYD	China Yuchai Interna	Pair Corr
0.63	RR	Richtech Robotics Class	Pair Corr
0.49	AOS	Smith AO	Pair Corr

The ability to find closely correlated positions to Emerson Electric could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Emerson Electric when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Emerson Electric - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Emerson Electric to buy it.

The correlation of Emerson Electric is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Emerson Electric moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Emerson Electric moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.

Correlation analysis and pair trading evaluation for Emerson Electric can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.

Pair Correlation Correlation Matching

Additional Tools for Emerson Stock Analysis

When running Emerson Electric's price analysis, check to measure Emerson Electric's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Emerson Electric is operating at the current time. Most of Emerson Electric's value examination focuses on studying past and present price action to predict the probability of Emerson Electric's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Emerson Electric's price. Additionally, you may evaluate how the addition of Emerson Electric to your portfolios can decrease your overall portfolio volatility.

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