Is Emerson Electric Co. overvalued or undervalued?

As of 7 November 2025, the valuation grade for Emerson Electric Co. moved from expensive to fair, indicating a shift in perception regarding its market value. Based on the current metrics, the company appears fairly valued. The P/E ratio stands at 50, the EV to EBITDA ratio is 26.14, and the Price to Book Value is 5.90, suggesting that while the company is not undervalued, it also does not exhibit excessive overvaluation compared to its peers.
In comparison with KLA Corp., which has a P/E ratio of 53.28 and an EV to EBITDA of 42.17, Emerson Electric Co. is positioned more favorably, reflecting a more attractive valuation relative to its industry. Additionally, the PEG ratio of 17.81 indicates that growth expectations are factored into the price. Notably, over the past year, Emerson Electric Co. has returned 1.81%, significantly lagging behind the S&P 500's return of 12.65%, which reinforces the notion that while the stock is fairly valued, it may not be the best investment choice at this time.