EMERSON ELECTRIC CO
$166.38
−0.54 (−0.32%) · delayed · Nov 13, 2026
Five-year price
52w $122.64 to $172.00
- Market cap
- $91.3B
- Enterprise value
- $97.7B
- P/E
- 34.7×
- 40.8× on 3y avg EPS
- EV / EBIT
- —
- FCF yield
- 3.9%
- ROIC
- —
- Debt / equity
- 0.40
- Piotroski F
- 9/9
Value scorecard · FY2026
Does it pass the value tests?
Quality
100
- –ROIC > 12% (5y avg)5y avg ROIC n/a
- ●ROE > 15% (5y avg)5y avg ROE 25.7%
- –Stable operating marginsMargin volatility n/a (σ, 5y)
- ●Earnings convert to cashFCF / net income 96% (5y avg)
- ●Growing revenueRevenue CAGR 5y 8.0%
- ●Shrinking share countDiluted shares -6.6% over 5y
Value
0
- ○P/E below 15P/E 34.7
- –EV/EBIT below 12EV/EBIT n/a
- ○FCF yield above 6%FCF yield 3.9%
- ○Price below Graham NumberGraham Number $63.83
- ○P/B below 3P/B 4.4
Safety
75
- ●Debt / equity below 0.5D/E 0.40
- ●Debt payable in < 4 yrs of earningsNet debt $6.5B
- –Interest coverage > 8xCoverage n/ax
- ○Current ratio > 1.5Current ratio 0.94
- ●Piotroski F-score ≥ 6F-score 9/9
Graham Defensive
43
- ●Adequate size (revenue > $2B)Revenue $19.0B
- ○Strong condition (current ratio ≥ 2)Current ratio 0.94
- ●Earnings stability (no loss, 10y)10 years of data
- ●Uninterrupted dividendsDividends paid every year on record
- ○Earnings growth ≥ 33% (10y, 3y avgs)EPS growth 28%
- ○Moderate P/E (≤ 15 on 3y avg EPS)P/E (3y avg) 40.8
- ○P/E × P/B ≤ 22.5Product 179.6
Valuation lab
What do you have to believe?
At $166.38, the market is pricing in about 9.9% annual free-cash-flow growth for the next decade (9% discount rate, 2.5% terminal growth).
Starting cash flow
Net debt $6.5B · 549M shares · 5y revenue CAGR 8.0%
Intrinsic value
$142.15
Price
$166.38
Premium paid
17%
What the price implies
The market is paying for 9.9% annual cash-flow growth for 10 years at a 9.0% discount rate.
Terminal value share
60% of the value sits beyond year 10.
Financial statements
A decade of the record.
USD millions · fiscal years · source: SEC 10-K XBRL
| Line item | FY17 | FY18 | FY19 | FY20 | FY21 | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | 15,264 | 17,408 | 18,372 | 16,785 | 12,932 | 13,804 | 15,165 | 17,492 | 18,016 | 18,982 |
| Gross profit | 6,404 | 7,432 | 7,815 | 7,009 | 7,563 | 6,306 | 7,427 | 8,885 | 9,519 | 10,128 |
| Operating income | — | — | — | — | — | — | — | — | — | — |
| Operating margin | — | — | — | — | — | — | — | — | — | — |
| Pre-tax income | 2,335 | 2,667 | 2,859 | 2,335 | 1,762 | 2,432 | 2,903 | 2,031 | 2,905 | 3,489 |
| Income tax | 660 | 443 | 531 | 345 | 346 | 549 | 642 | 420 | 690 | 796 |
| Net income | 1,518 | 2,203 | 2,306 | 1,965 | 2,303 | 3,231 | 13,219 | 1,974 | 2,270 | 2,691 |
| EPS (diluted) | 2.35 | 3.46 | 3.71 | 3.24 | 3.82 | 5.41 | 22.88 | 3.44 | 4.00 | 4.79 |
| Diluted shares | 643 | 635 | 621 | 607 | 602 | 596 | 577 | 574 | 567 | 562 |
Who owns it