Is Emerson Electric Co. overvalued or undervalued?

As of 21 November 2025, the valuation grade for Emerson Electric Co. has moved from fair to expensive. The company appears overvalued based on its current metrics, which include 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., a peer in the electronics and appliances industry, has a more attractive P/E ratio of 53.28 and an EV to EBITDA of 42.17, indicating that Emerson Electric Co. is trading at a premium relative to its peers.
Additionally, while Emerson Electric Co. has shown a stock return of 35.44% over the past three years, it significantly lags behind the S&P 500's return of 67.17% during the same period, further supporting the notion that the stock may be overvalued.