Emerson Electric Stock Current Valuation
| EMR Stock | USD 106.45 1.33 1.23% |
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 05/02/2024, Enterprise Value is likely to grow to about 52.5 B, while Enterprise Value Over EBITDA is likely to drop 7.65. Fundamental drivers impacting Emerson Electric's valuation include:
Price Book 3.1151 | Enterprise Value 76.9 B | Enterprise Value Ebitda 18.7661 | Price Sales 4.0481 | Forward PE 21.4133 |
Undervalued
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.
Our valuation method for Emerson Electric is useful when determining the fair value of the Emerson stock, which is usually 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 106.45 | Real 117.12 | Target 109.95 | Hype 106.4 | Naive 108.5 |
The real value of Emerson Stock, also known as its intrinsic value, is the underlying worth of Emerson Electric Company, which is reflected in its stock price. It is based on Emerson Electric's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. 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 | 76.9 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 |
| Timeline |
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.
| Competition |
In accordance with the recently published financial statements, Emerson Electric has a Current Valuation of 76.9 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 related companies.
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.Environment Score | Governance Score | Social Score |
Emerson Fundamentals
| Return On Equity | 0.0894 | ||||
| Return On Asset | 0.0481 | ||||
| Profit Margin | 0.69 % | ||||
| Operating Margin | 0.21 % | ||||
| Current Valuation | 76.9 B | ||||
| Shares Outstanding | 571.7 M | ||||
| Shares Owned By Insiders | 0.34 % | ||||
| Shares Owned By Institutions | 77.27 % | ||||
| Number Of Shares Shorted | 6.41 M | ||||
| Price To Earning | 17.43 X | ||||
| Price To Book | 3.12 X | ||||
| Price To Sales | 4.05 X | ||||
| Revenue | 15.16 B | ||||
| Gross Profit | 7.43 B | ||||
| EBITDA | 3.88 B | ||||
| Net Income | 2.13 B | ||||
| Cash And Equivalents | 8.05 B | ||||
| Cash Per Share | 3.05 X | ||||
| Total Debt | 8.16 B | ||||
| Debt To Equity | 0.67 % | ||||
| Current Ratio | 1.09 X | ||||
| Book Value Per Share | 36.16 X | ||||
| Cash Flow From Operations | 637 M | ||||
| Short Ratio | 2.90 X | ||||
| Earnings Per Share | 3.41 X | ||||
| Price To Earnings To Growth | 2.30 X | ||||
| Target Price | 123.16 | ||||
| Number Of Employees | 67 K | ||||
| Beta | 1.37 | ||||
| Market Capitalization | 61.62 B | ||||
| Total Asset | 42.75 B | ||||
| Retained Earnings | 40.07 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 | 42.75 B | ||||
| Last Dividend Paid | 2.09 |
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.
Emerson Electric Investors Sentiment
The influence of Emerson Electric's investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in Emerson. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock market does not have solid backing from leading economists and market statisticians.
Investor biases related to Emerson Electric's public news can be used to forecast risks associated with an investment in Emerson. The trend in average sentiment can be used to explain how an investor holding Emerson can time the market purely based on public headlines and social activities around Emerson Electric. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Emerson Electric's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Emerson Electric's and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average Emerson Electric's news discussions. The higher the estimated score, the more favorable is the investor's outlook on Emerson Electric.
Emerson Electric Implied Volatility | 158.37 |
Emerson Electric's implied volatility exposes the market's sentiment of Emerson Electric stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Emerson Electric's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Emerson Electric stock will not fluctuate a lot when Emerson Electric's options are near their expiration.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Emerson Electric in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Emerson Electric's short interest history, or implied volatility extrapolated from Emerson Electric options trading.
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
| 0.68 | B | Barnes Group Earnings Call Tomorrow | PairCorr |
| 0.66 | CR | Crane Company Financial Report 8th of May 2024 | PairCorr |
| 0.92 | IR | Ingersoll Rand | PairCorr |
Moving against Emerson Stock
| 0.81 | ATS | ATS Corporation | PairCorr |
| 0.63 | RR | Richtech Robotics Class | 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.Check out Emerson Electric Piotroski F Score and Emerson Electric Altman Z Score analysis. To learn how to invest in Emerson Stock, please use our How to Invest in Emerson Electric guide.You can also try the Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Complementary 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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Is Emerson Electric's industry 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 (0.94) | Dividend Share 2.085 | Earnings Share 3.41 | Revenue Per Share 27.862 | Quarterly Revenue Growth 0.221 |
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.