Emerson Electric Valuation
| EMR Stock | USD 130.07 1.80 1.40% |
At this time, the firm appears to be fairly valued. Emerson Electric shows a prevailing Real Value of $127.07 per share. The current price of the firm is $130.07. Our model computes the value of Emerson Electric from reviewing the firm fundamentals such as Profit Margin of 0.11 %, shares outstanding of 570.2 M, and Current Valuation of 78.78 B as well as analyzing its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Emerson Electric's valuation include:
Price Book 3.4279 | Enterprise Value 78.8 B | Enterprise Value Ebitda 19.5377 | Price Sales 4.24 | Forward PE 21.8818 |
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 130.07 | Real 127.07 | Target 109.95 | Hype 130.87 | Naive 124.34 |
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: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Emerson Electric's intrinsic value based on its ongoing forecasts of Emerson Electric's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Emerson Electric's closest peers.
Emerson Electric Cash |
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Emerson Valuation Trend
Emerson Electric's real value is important for investors to make better decisions and a more accurate overall view of Emerson Electric's financial worth over time. Using both Emerson Electric's enterprise value as well as its market capitalization is the best way to gauge the value of the company and is usually enough for investors to make market timing conclusions.
Emerson Revenue by Product
Emerson Electric Total Value Analysis
Emerson Electric is currently expected to have company total value of 78.78 B with market capitalization of 74.17 B, debt of 7.69 B, and cash on hands of 8.05 B. Please note that company total value may be misleading and is a subject to accounting gimmicks. We encourage investors to carefully check all of the Emerson Electric fundamentals before making security assessment based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
78.78 B | 74.17 B | 7.69 B | 8.05 B |
Emerson Electric Investor Information
About 80.0% of the company shares are held by institutions such as insurance companies. The book value of Emerson Electric was currently reported as 37.95. The company has Price/Earnings To Growth (PEG) ratio of 2.3. Emerson Electric last dividend was issued on the 15th of November 2024. The entity had 2:1 split on the 12th of December 2006. Based on the measurements of operating efficiency obtained from Emerson Electric's historical financial statements, Emerson Electric may be sliding down financialy. It has an above-average probability of going through some form of financial hardship next quarter.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Operating Profit Margin | 0.13 | 0.1524 |
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| Total Cash From Operating Activities | 2.5 B | 3.3 B |
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| Operating Income | 2.6 B | 2.7 B |
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Emerson Electric Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Emerson Electric has an asset utilization ratio of 39.53 percent. This connotes that the Company is making $0.4 for each dollar of assets. An increasing asset utilization means that Emerson Electric is more efficient with each dollar of assets it utilizes for everyday operations.Emerson Electric Ownership Allocation
Emerson Electric holds a total of 570.2 Million outstanding shares. The majority of Emerson Electric outstanding shares are owned by other corporate entities. These outside corporations are usually referred to as non-private investors looking to obtain positions in Emerson Electric to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in Emerson Electric. Please pay attention to any change in the institutional holdings of Emerson Electric as this could imply that something significant has changed or is about to change at the company. Please note that on July 15, 2024, Representative Kevin Hern of US Congress acquired under $15k worth of Emerson Electric's common stock.Emerson Electric Profitability Analysis
The company reported the last year's revenue of 17.49 B. Total Income to common stockholders was 1.62 B with profit before taxes, overhead, and interest of 7.43 B.Emerson Electric Past Distributions to stockholders
About Emerson Electric Valuation
The stock valuation mechanism determines Emerson Electric's current worth on a daily basis. In general, an absolute valuation approach attempts to find the value of Emerson Electric based exclusively on its fundamental and basic technical indicators. As compared to an absolute model, our relative valuation model uses a comparative analysis of Emerson Electric. We calculate exposure to Emerson Electric's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Emerson Electric's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 7.8 B | 6.5 B | |
| Pretax Profit Margin | 0.12 | 0.11 | |
| Operating Profit Margin | 0.15 | 0.13 | |
| Net Profit Margin | 0.11 | 0.09 | |
| Gross Profit Margin | 0.45 | 0.31 |
Emerson Electric Quarterly Retained Earnings |
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A single share of Emerson Electric represents a small ownership stake in the entity. As a stockholder of Emerson, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
Emerson Electric Dividends Analysis For Valuation
At this time, Emerson Electric's Dividend Yield is relatively stable compared to the past year. As of 11/23/2024, Dividend Payout Ratio is likely to grow to 0.69, while Dividends Paid is likely to drop slightly above 901.2 M. . At this time, Emerson Electric's Retained Earnings are relatively stable compared to the past year. As of 11/23/2024, Earnings Yield is likely to grow to 0.05, while Retained Earnings Total Equity is likely to drop slightly above 23.3 B.
| Last Reported | Projected for Next Year | ||
| Dividends Paid | 1.2 B | 901.2 M | |
| Dividend Yield | 0.02 | 0.02 | |
| Dividend Payout Ratio | 0.61 | 0.69 | |
| Dividend Paid And Capex Coverage Ratio | 2.06 | 1.32 |
There are various types of dividends Emerson Electric can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Emerson shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Emerson Electric directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Emerson pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Emerson Electric by the value of the dividends paid out.
Emerson Electric Growth Indicators
Investing in growth stocks can be very risky. If the company such as Emerson Electric does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 574 M | |
| Quarterly Earnings Growth Y O Y | 0.342 | |
| Forward Price Earnings | 21.8818 |
Emerson Electric Current Valuation Indicators
Emerson Electric's valuation analysis is a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Emerson Electric's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Emerson Electric, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Emerson Electric's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Emerson Electric's worth.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.