Is Emerson Electric Co. overvalued or undervalued?

As of 14 November 2025, the valuation grade for Emerson Electric Co. has moved from fair to expensive, indicating that the stock is currently overvalued. The company exhibits a P/E ratio of 50, a Price to Book Value of 5.90, and an EV to EBITDA of 26.14, all of which suggest that the stock is priced higher than its earnings and assets would typically warrant.
In comparison to its peers, KLA Corp. has a higher P/E ratio of 53.28 and an EV to EBITDA of 42.17, but it is considered attractive, while Emerson's metrics indicate a less favorable valuation. Furthermore, Emerson's recent stock performance has lagged behind the S&P 500, with a year-to-date return of 2.95% compared to the index's 14.49%, and a three-year return of 34.59% versus 70.17% for the S&P 500, reinforcing the notion that the stock may not be a compelling investment at its current price.