Emerson Electric Stock Market Value
| EMR Stock | USD 128.27 0.83 0.64% |
| Symbol | Emerson |
Emerson Electric Price To Book Ratio
Is Electrical Components & Equipment space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Emerson Electric. If investors know Emerson will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Emerson Electric listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.342 | Dividend Share 2.1 | Earnings Share 2.82 | Revenue Per Share 30.618 | Quarterly Revenue Growth 0.129 |
The market value of Emerson Electric is measured differently than its book value, which is the value of Emerson that is recorded on the company's balance sheet. Investors also form their own opinion of Emerson Electric's value that differs from its market value or its book value, called intrinsic value, which is Emerson Electric's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Emerson Electric's market value can be influenced by many factors that don't directly affect Emerson Electric's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Emerson Electric's value and its price as these two are different measures arrived at by different means. Investors typically determine if Emerson Electric is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Emerson Electric's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Emerson Electric 'What if' Analysis
In the world of financial modeling, what-if analysis is part of sensitivity analysis performed to test how changes in assumptions impact individual outputs in a model. When applied to Emerson Electric's stock what-if analysis refers to the analyzing how the change in your past investing horizon will affect the profitability against the current market value of Emerson Electric.
| 10/22/2024 |
| 11/21/2024 |
If you would invest 0.00 in Emerson Electric on October 22, 2024 and sell it all today you would earn a total of 0.00 from holding Emerson Electric or generate 0.0% return on investment in Emerson Electric over 30 days. Emerson Electric is related to or competes with Dover, Parker Hannifin, Pentair PLC, Eaton PLC, Illinois Tool, Smith AO, and Cummins. Emerson Electric Co., a technology and engineering company, provides various solutions for customers in industrial, comm... More
Emerson Electric Upside/Downside Indicators
Understanding different market momentum indicators often help investors to time their next move. Potential upside and downside technical ratios enable traders to measure Emerson Electric's stock current market value against overall market sentiment and can be a good tool during both bulling and bearish trends. Here we outline some of the essential indicators to assess Emerson Electric upside and downside potential and time the market with a certain degree of confidence.
| Downside Deviation | 1.31 | |||
| Information Ratio | 0.1516 | |||
| Maximum Drawdown | 9.12 | |||
| Value At Risk | (1.83) | |||
| Potential Upside | 2.15 |
Emerson Electric Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Emerson Electric's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Emerson Electric's standard deviation. In reality, there are many statistical measures that can use Emerson Electric historical prices to predict the future Emerson Electric's volatility.| Risk Adjusted Performance | 0.1608 | |||
| Jensen Alpha | 0.2103 | |||
| Total Risk Alpha | 0.1527 | |||
| Sortino Ratio | 0.2034 | |||
| Treynor Ratio | 0.2121 |
Emerson Electric Backtested Returns
Emerson Electric appears to be very steady, given 3 months investment horizon. Emerson Electric secures Sharpe Ratio (or Efficiency) of 0.19, which denotes the company had a 0.19% return per unit of risk over the last 3 months. We have found twenty-nine technical indicators for Emerson Electric, which you can use to evaluate the volatility of the firm. Please utilize Emerson Electric's Coefficient Of Variation of 485.7, downside deviation of 1.31, and Mean Deviation of 1.1 to check if our risk estimates are consistent with your expectations. On a scale of 0 to 100, Emerson Electric holds a performance score of 14. The firm shows a Beta (market volatility) of 1.66, which means a somewhat significant risk relative to the market. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Emerson Electric will likely underperform. Please check Emerson Electric's value at risk, and the relationship between the jensen alpha and skewness , to make a quick decision on whether Emerson Electric's price patterns will revert.
Auto-correlation | 0.18 |
Very weak predictability
Emerson Electric has very weak predictability. Overlapping area represents the amount of predictability between Emerson Electric time series from 22nd of October 2024 to 6th of November 2024 and 6th of November 2024 to 21st of November 2024. The more autocorrelation exist between current time interval and its lagged values, the more accurately you can make projection about the future pattern of Emerson Electric price movement. The serial correlation of 0.18 indicates that over 18.0% of current Emerson Electric price fluctuation can be explain by its past prices.
| Correlation Coefficient | 0.18 | |
| Spearman Rank Test | 0.15 | |
| Residual Average | 0.0 | |
| Price Variance | 1.32 |
Emerson Electric lagged returns against current returns
Autocorrelation, which is Emerson Electric stock's lagged correlation, explains the relationship between observations of its time series of returns over different periods of time. The observations are said to be independent if autocorrelation is zero. Autocorrelation is calculated as a function of mean and variance and can have practical application in predicting Emerson Electric's stock expected returns. We can calculate the autocorrelation of Emerson Electric returns to help us make a trade decision. For example, suppose you find that Emerson Electric has exhibited high autocorrelation historically, and you observe that the stock is moving up for the past few days. In that case, you can expect the price movement to match the lagging time series.
Current and Lagged Values |
| Timeline |
Emerson Electric regressed lagged prices vs. current prices
Serial correlation can be approximated by using the Durbin-Watson (DW) test. The correlation can be either positive or negative. If Emerson Electric stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Emerson Electric stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Emerson Electric stock over time.
Current vs Lagged Prices |
| Timeline |
Emerson Electric Lagged Returns
When evaluating Emerson Electric's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Emerson Electric stock have on its future price. Emerson Electric autocorrelation represents the degree of similarity between a given time horizon and a lagged version of the same horizon over the previous time interval. In other words, Emerson Electric autocorrelation shows the relationship between Emerson Electric stock current value and its past values and can show if there is a momentum factor associated with investing in Emerson Electric.
Regressed Prices |
| Timeline |
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
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.