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, an EV to EBITDA of 39.21, and a Price to Book Value of 5.90. In comparison to peers, KLA Corp. is considered attractive with a P/E of 53.28 and an EV to EBITDA of 42.17, suggesting that Emerson Electric Co. may not be competitively priced within its industry.
The company's recent stock performance shows a 1-week return of 4.02%, which outperformed the S&P 500's return of 3.73%. However, over the longer term, Emerson's 3-year return of 41.56% and 5-year return of 70.65% lag significantly behind the S&P 500's returns of 72.78% and 88.25%, respectively, reinforcing the notion of overvaluation.