Is Emerson Electric Co. overvalued or undervalued?

As of 7 November 2025, Emerson Electric Co. has moved from an expensive to a fair valuation grade. 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 of 26.14. In comparison, KLA Corp., a peer in the electronics and appliances industry, has a higher P/E ratio of 53.28, indicating that Emerson's valuation is more attractive relative to its peer.
Despite the fair valuation, Emerson Electric Co. has underperformed against the S&P 500 in the longer term, with a 3-year return of 38.29% compared to the S&P 500's 76.76% and a 5-year return of 67.86% against 91.73%. This suggests that while the stock is fairly valued, it may not be the best investment compared to its benchmark.