Is Emerson Electric Co. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Emerson Electric Co. has moved from attractive to fair, indicating a shift in its perceived value. The company appears to be fairly valued based on its current metrics, with a P/E ratio of 50, a Price to Book Value of 5.90, and an EV to EBITDA ratio of 26.14. In comparison, KLA Corp. shows a higher P/E ratio of 53.28 and an EV to EBITDA of 42.17, suggesting that Emerson is relatively more reasonably priced within its peer group.
Despite the recent stock performance showing a 17.05% return over the past year compared to the S&P 500's 14.08%, the longer-term view reveals that Emerson has underperformed the index over three and five years, with returns of 61.46% and 83.95% respectively, against the S&P's 81.19% and 91.29%. This trend reinforces the notion that while Emerson Electric Co. is currently fairly valued, its growth potential may be limited compared to its peers.