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 at this time, 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., a peer in the same industry, has a higher P/E ratio of 53.28 and a lower EV to EBITDA of 42.17, suggesting that Emerson is competitively positioned but not particularly undervalued.
In terms of recent performance, Emerson Electric Co. has returned 17.05% over the past year, which slightly outpaces the S&P 500's return of 14.08%. However, over longer periods, such as 3 years and 5 years, Emerson's returns of 61.46% and 83.95% lag behind the S&P 500's returns of 81.19% and 91.29%, respectively, indicating a potential concern regarding its growth relative to the broader market.