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 that the company is overvalued. Key valuation 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. is considered attractive with a P/E of 53.28 and an EV to EBITDA of 42.17, suggesting that Emerson's valuation may not be justified relative to its peers.
The company's recent stock performance has lagged behind the S&P 500, with a year-to-date return of 2.42% compared to the index's 14.49%. This underperformance, coupled with its elevated valuation ratios, reinforces the conclusion that Emerson Electric Co. is currently overvalued.