Is Emerson Electric Co. overvalued or undervalued?

As of 28 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, all of which suggest a premium valuation compared to industry norms.
In comparison with peers, KLA Corp. has a P/E of 53.28 and an EV to EBITDA of 42.17, indicating that while Emerson is expensive, it is not the highest valued in its sector. However, the high PEG ratio of 17.81 further emphasizes concerns about growth expectations relative to its price. Over the past year, Emerson Electric Co. has returned 0.60%, significantly lagging behind the S&P 500's 14.18% return, reinforcing the view that the stock may be overvalued.