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, indicating that the company is overvalued. Key valuation ratios include 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 and a lower EV to EBITDA of 42.17, suggesting that Emerson may not be competitively priced relative to its peers.
Recent stock performance shows that while Emerson Electric Co. has returned 34.13% over the past three years, it significantly lags behind the S&P 500's return of 67.17% in the same period, reinforcing the notion that the stock may be overvalued given its lackluster performance compared to the broader market.