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. Based on the current metrics, the company appears to be fairly valued. The P/E ratio stands at 50, the Price to Book Value is 5.90, and the EV to EBITDA ratio is 26.14, indicating that the stock is priced in line with its earnings potential but may not offer significant upside compared to its peers.
In comparison to its peers, KLA Corp. has a higher P/E ratio of 53.28 and a lower PEG ratio of 1.34, suggesting it may be a more attractive investment despite its higher valuation. Emerson's return over the past year is 17.05%, which outperformed the S&P 500's return of 14.08%, indicating relative strength in its stock performance, although it has lagged behind the index over longer periods.