Emerson Electric Stock Current Valuation
| EMR Stock | USD 128.27 0.83 0.64% |
Valuation analysis of Emerson Electric helps investors to measure Emerson Electric's intrinsic value by examining its available valuation indicators, including the cash flow records, the balance sheet account changes and income statement patterns. As of 11/21/2024, Enterprise Value Over EBITDA is likely to grow to 18.08. Also, Enterprise Value Multiple is likely to grow to 18.08. Fundamental drivers impacting Emerson Electric's valuation include:
Price Book 3.4023 | Enterprise Value 78.2 B | Enterprise Value Ebitda 19.4005 | Price Sales 4.2084 | Forward PE 21.692 |
Fairly Valued
Today
Please note that Emerson Electric's price fluctuation is very steady at this time. Calculation of the real value of Emerson Electric is based on 3 months time horizon. Increasing Emerson Electric's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
The fair value of the Emerson stock is determined by what a typical buyer is willing to pay for full or partial control of Emerson Electric. Since Emerson Electric is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Emerson Stock. However, Emerson Electric's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 128.27 | Real 126.41 | Target 109.95 | Hype 128.59 | Naive 127.39 |
The intrinsic value of Emerson Electric's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Emerson Electric's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Emerson Electric helps investors to forecast how Emerson stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Emerson Electric more accurately as focusing exclusively on Emerson Electric's fundamentals will not take into account other important factors: Emerson Electric Company Current Valuation Analysis
Emerson Electric's Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
Current Emerson Electric Current Valuation | 78.22 B |
Most of Emerson Electric's fundamental indicators, such as Current Valuation, 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 Current Valuation 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 Current Valuation. 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.
Click cells to compare fundamentals
Emerson Current Valuation Historical Pattern
Today, most investors in Emerson Electric Stock are looking for potential investment opportunities by analyzing not only static indicators but also various Emerson Electric's growth ratios. Consistent increases or drops in fundamental ratios usually indicate a possible pattern that can be successfully translated into profits. However, when comparing two companies, knowing each company's current valuation growth rates may not be enough to decide which company is a better investment. That's why investors frequently use a static breakdown of Emerson Electric current valuation as a starting point in their analysis.
Emerson Electric Current Valuation |
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Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
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In accordance with the recently published financial statements, Emerson Electric has a Current Valuation of 78.22 B. This is much higher than that of the Electrical Equipment sector and significantly higher than that of the Industrials industry. The current valuation for all United States stocks is significantly lower than that of the firm.
Emerson Current Valuation 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 Current Valuation 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 current valuation 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 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 | PairCorr |
| 0.95 | CR | Crane Company | PairCorr |
| 0.84 | IR | Ingersoll Rand Sell-off Trend | PairCorr |
Moving against Emerson Stock
| 0.66 | CVV | CVD Equipment | PairCorr |
| 0.66 | CYD | China Yuchai Interna | PairCorr |
| 0.63 | RR | Richtech Robotics Class | PairCorr |
| 0.49 | AOS | Smith AO | PairCorr |
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.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.