Is Emerson Electric Co. overvalued or undervalued?

As of 7 November 2025, the valuation grade for Emerson Electric Co. moved from expensive to fair. The company is fairly valued based on its current metrics. 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., a peer, has a higher P/E ratio of 53.28, indicating that Emerson may be more attractively priced relative to its earnings.
Despite its fair valuation, Emerson Electric Co. has underperformed against the S&P 500 in recent periods, with a 1-year return of 1.81% compared to the S&P 500's 12.65%. The longer-term returns also reflect a significant lag, with a 3-year return of 41.92% versus the S&P 500's 76.76%, suggesting that while the stock may be fairly valued, it faces challenges in delivering competitive returns.