Is Emerson Electric Co. overvalued or undervalued?

As of 10 October 2025, the valuation grade for Emerson Electric Co. has moved from attractive to fair, indicating a shift in its perceived value. Based on the current metrics, the company appears to be fairly valued. 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. In comparison, KLA Corp. has a more attractive P/E of 53.28, suggesting that Emerson may not be the most compelling option in its sector.
In terms of recent performance, Emerson Electric Co. has underperformed against the S&P 500 over the past week and month, with returns of -6.49% and -5.73%, respectively, while the S&P 500 saw minor gains. However, over the longer term, the company has shown a YTD return of 1.68%, which is significantly lower than the S&P 500's 11.41%, indicating a potential concern for investors regarding its growth trajectory relative to the broader market.