Is Emerson Electric Co. overvalued or undervalued?

As of 6 August 2025, the valuation grade for Emerson Electric Co. moved from very expensive to fair, indicating a more favorable assessment of its market position. The company appears fairly valued based on its current metrics. Notable valuation ratios include a P/E ratio of 50, an EV to EBITDA of 26.14, and a Price to Book Value of 5.90.
In comparison to its peers, Emerson Electric Co. has a P/E ratio of 48.44, while KLA Corp. is considered attractive with a P/E of 53.28. Additionally, Emerson's PEG ratio stands at 17.81, suggesting that while it may not be the cheapest option, it aligns reasonably with its growth expectations. Over the past year, Emerson Electric Co. has outperformed the S&P 500, returning 27.23% compared to the index's 17.14%, reinforcing its valuation narrative.