Is Emerson Electric Co. overvalued or undervalued?

As of 14 November 2025, the valuation grade for Emerson Electric Co. moved from fair to expensive, indicating a shift towards overvaluation. The company appears overvalued based on key metrics such as a P/E ratio of 50, a Price to Book Value of 5.90, and an EV to EBITDA ratio of 39.21. In comparison, KLA Corp. has a P/E of 53.28 and an EV to EBITDA of 42.17, suggesting that while Emerson is expensive, its peers are also highly valued.
Recent performance shows that Emerson Electric Co. has underperformed relative to the S&P 500, with a year-to-date return of 2.95% compared to the S&P 500's 14.49%. This trend reinforces the notion of overvaluation, as the stock has lagged behind broader market indices over multiple time frames.