Is Emerson Electric Co. overvalued or undervalued?

As of 3 October 2025, Emerson Electric Co. has moved from an attractive to a fair valuation grade. The company appears to be overvalued based on its current metrics. Key ratios include a P/E ratio of 50, an EV to EBITDA of 26.14, and a Price to Book Value of 5.90, which indicate a premium compared to its peers. In comparison, KLA Corp. has a P/E ratio of 53.28 and an EV to EBITDA of 42.17, suggesting that while Emerson is relatively high, it is not the highest in its sector.
Despite its recent stock performance, which shows a 22.92% return over the past year compared to the S&P 500's 17.82%, the valuation metrics suggest that the stock may not be justified at its current price level. Overall, Emerson Electric Co. is positioned as overvalued in the current market context.