Latest Ratios: P/E Ratio 38.3x · EV/EBITDA 19.6x · ROE 9.6%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $86.6B | $74.3B | $62.8B | $55.7B | $43.4B | $56.7B | $39.8B | $41.5B | $48.7B | $40.4B | $35.3B |
| Enterprise Value | $98.8B | $86.6B | $67.5B | $56.4B | $52.4B | $61.6B | $44.3B | $45.7B | $52.3B | $42.0B | $38.7B |
| P/E Ratio → | 38.26 | 32.47 | 31.90 | 25.91 | 15.91 | 24.62 | 20.24 | 17.99 | 22.08 | 26.64 | 21.56 |
| P/S Ratio | 4.80 | 4.13 | 3.59 | 3.68 | 3.14 | 4.38 | 2.37 | 2.26 | 2.79 | 2.65 | 2.43 |
| P/B Ratio | 4.31 | 3.66 | 2.28 | 2.10 | 2.66 | 5.71 | 4.71 | 5.02 | 5.41 | 4.61 | 4.63 |
| P/FCF | 32.46 | 27.87 | 21.55 | 203.47 | 18.16 | 18.93 | 15.63 | 17.20 | 21.39 | 28.16 | 14.49 |
| P/OCF | 27.94 | 24.00 | 18.84 | 87.52 | 14.86 | 15.86 | 12.90 | 13.80 | 16.82 | 21.15 | 12.24 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 4.80 | 3.86 | 3.72 | 3.80 | 4.76 | 2.64 | 2.49 | 3.01 | 2.75 | 2.67 |
| EV / EBITDA | 19.56 | 17.14 | 15.51 | 14.80 | 16.39 | 22.63 | 12.18 | 11.60 | 14.10 | 12.64 | 11.79 |
| EV / EBIT | 27.97 | 26.06 | 28.83 | 17.83 | 19.71 | 31.95 | 17.66 | 14.94 | 18.24 | 16.57 | 15.29 |
| EV / FCF | — | 32.45 | 23.19 | 205.85 | 21.92 | 20.56 | 17.41 | 18.96 | 23.00 | 29.27 | 15.90 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 52.8% | 52.8% | 50.8% | 49.0% | 45.7% | 44.3% | 41.8% | 42.5% | 42.7% | 42.1% | 43.1% |
| Operating Margin | 19.6% | 19.6% | 15.2% | 18.2% | 17.1% | 15.1% | 16.6% | 17.0% | 17.0% | 17.6% | 18.7% |
| Net Profit Margin | 12.7% | 12.7% | 11.3% | 87.2% | 23.4% | 17.8% | 11.7% | 12.6% | 12.7% | 9.9% | 11.3% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 9.6% | 9.6% | 7.3% | 61.6% | 24.6% | 25.1% | 23.5% | 26.7% | 24.8% | 18.5% | 20.8% |
| ROA | 5.3% | 5.3% | 4.5% | 33.7% | 10.7% | 9.7% | 9.1% | 11.3% | 11.0% | 7.3% | 7.5% |
| ROIC | 8.2% | 8.2% | 6.7% | 7.9% | 8.8% | 10.6% | 16.4% | 18.6% | 19.2% | 18.8% | 17.7% |
| ROCE | 10.0% | 10.0% | 7.0% | 8.4% | 10.2% | 11.0% | 17.6% | 21.7% | 20.5% | 19.0% | 19.4% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.68 | 0.68 | 0.30 | 0.33 | 0.66 | 0.73 | 0.93 | 0.69 | 0.53 | 0.53 | 0.87 |
| Debt / EBITDA | 2.72 | 2.72 | 1.92 | 2.28 | 3.38 | 2.66 | 2.16 | 1.45 | 1.28 | 1.40 | 2.02 |
| Net Debt / Equity | — | 0.60 | 0.17 | 0.02 | 0.55 | 0.49 | 0.54 | 0.51 | 0.41 | 0.18 | 0.45 |
| Net Debt / EBITDA | 2.42 | 2.42 | 1.09 | 0.17 | 2.82 | 1.79 | 1.25 | 1.07 | 0.99 | 0.48 | 1.05 |
| Debt / FCF | — | 4.58 | 1.64 | 2.39 | 3.77 | 1.63 | 1.79 | 1.75 | 1.61 | 1.11 | 1.42 |
| Interest Coverage | 8.58 | 8.58 | 7.25 | 12.12 | 11.67 | 11.61 | 14.34 | 15.22 | 14.20 | 12.62 | 11.77 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.88 | 0.88 | 1.77 | 2.75 | 1.09 | 1.35 | 1.52 | 1.19 | 1.07 | 1.64 | 1.24 |
| Quick Ratio | 0.65 | 0.65 | 1.40 | 2.35 | 0.87 | 1.02 | 1.19 | 0.88 | 0.78 | 1.30 | 1.09 |
| Cash Ratio | 0.16 | 0.16 | 0.62 | 1.60 | 0.23 | 0.38 | 0.57 | 0.25 | 0.18 | 0.61 | 0.40 |
| Asset Turnover | — | 0.43 | 0.40 | 0.35 | 0.39 | 0.52 | 0.73 | 0.90 | 0.85 | 0.78 | 0.67 |
| Inventory Turnover | 3.84 | 3.84 | 3.95 | 3.86 | 4.30 | 3.51 | 5.07 | 5.62 | 5.50 | 5.21 | 6.84 |
| Days Sales Outstanding | — | 62.83 | 61.08 | 60.60 | 59.78 | 83.86 | 60.93 | 59.30 | 63.38 | 73.46 | 67.89 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 1.4% | 1.6% | 1.9% | 2.1% | 2.8% | 2.1% | 3.0% | 2.9% | 2.5% | 3.1% | 3.5% |
| Payout Ratio | 52.0% | 52.0% | 61.0% | 9.1% | 37.9% | 52.5% | 61.5% | 52.4% | 55.8% | 81.6% | 75.0% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 2.6% | 3.1% | 3.1% | 3.9% | 6.3% | 4.1% | 4.9% | 5.6% | 4.5% | 3.8% | 4.6% |
| FCF Yield | 3.1% | 3.6% | 4.6% | 0.5% | 5.5% | 5.3% | 6.4% | 5.8% | 4.7% | 3.6% | 6.9% |
| Buyback Yield | 1.4% | 1.7% | 1.0% | 4.0% | 1.2% | 0.9% | 2.4% | 3.0% | 2.1% | 1.0% | 1.7% |
| Total Shareholder Yield | 2.8% | 3.3% | 2.9% | 6.1% | 4.0% | 3.0% | 5.4% | 5.9% | 4.6% | 4.1% | 5.2% |
| Shares Outstanding | — | $567M | $574M | $577M | $593M | $602M | $607M | $621M | $635M | $643M | $647M |
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying EMR stock.
Emerson Electric Co.'s current P/E ratio is 38.3x. The historical average is 25.3x. This places it at the 97th percentile of its historical range.
Emerson Electric Co.'s current EV/EBITDA is 19.6x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 11.5x.
Emerson Electric Co.'s return on equity (ROE) is 9.6%. The historical average is 21.8%.
Based on historical data, Emerson Electric Co. is trading at a P/E of 38.3x. This is at the 97th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Emerson Electric Co.'s current dividend yield is 1.36% with a payout ratio of 52.0%.
Emerson Electric Co. has 52.8% gross margin and 19.6% operating margin. Operating margin between 10-20% is typical for established companies.
Emerson Electric Co.'s Debt/EBITDA ratio is 2.7x, indicating moderate leverage. A ratio between 2-4x is manageable but warrants monitoring.
Key Metrics
Top Statement Risk
Integration and geopolitical exposure
Metrics are mathematically derived from official filings.
Margin Expansion Signals Mix Shift
According to recent SEC filings, Emerson's gross margin reached 54.5% in Q3 2026, up 190 basis points year-over-year, while operating margin hit 20.5%, reflecting a favorable shift toward software and services.
The sequential improvement in gross margin from 51.9% in Q4 2025 to 54.5% in Q3 2026 suggests that the portfolio transformation toward higher-margin automation software is gaining traction. Operating margin expansion to 20.5% from 18.2% a year earlier indicates that SG&A leverage is being realized as revenue grows faster than overhead. This margin profile is consistent with a high-value industrial technology firm rather than a commodity machinery manufacturer, and it supports the thesis that the earnings mix is becoming more durable.
ROIC Recovery Post-Acquisition
Based on reported figures, Emerson's ROIC improved to 2.3% in Q3 2026 from 1.5% in Q2 2024, though it remains below pre-acquisition levels, reflecting the capital intensity of the National Instruments deal.
The gradual climb in ROIC from 1.5% in Q2 2024 to 2.3% in Q3 2026 suggests that the integration of National Instruments is beginning to generate returns, but the absolute level remains modest relative to peers like Honeywell (12.6%) and Rockwell (15.1%). The low ROIC is partly a function of the large goodwill base ($18.1B, 43% of assets) from acquisitions, which depresses the denominator. Investors should monitor whether ROIC can approach peer levels as synergies materialize, as this would validate the strategic pivot.
Working Capital Drag Persists
As reported in financial statements, Emerson's cash conversion cycle extended to 97 days in Q3 2026 from 95 days a year earlier, driven by a DIO of 102 days, indicating elevated inventory levels.
The CCC has remained in the mid-to-high 90s over the past year, with DIO consistently above 100 days, suggesting that inventory management is a drag on cash conversion. DSO improved slightly to 58 days from 60 in Q2 2026, but DPO at 63 days is relatively low, indicating limited supplier leverage. The working capital volatility observed in the cash flow statement (swings from -$357M to +$293M) suggests timing effects that may distort quarterly comparisons, but the structural inefficiency in inventory warrants monitoring.
Leverage Elevated but Serviceable
According to recent financial statements, Emerson's D/E ratio rose to 0.68 in Q3 2026 from 0.29 a year earlier, while interest coverage improved to 11.78x, indicating that debt service remains comfortable despite higher leverage.
The doubling of D/E reflects the debt-funded acquisition of National Instruments, but the interest coverage ratio of 11.78x in Q3 2026 is robust and has improved from 4.29x in Q4 2025, suggesting that earnings are more than sufficient to cover interest expenses. However, D/EBITDA at 11.45x is elevated, which may raise concerns about covenant headroom if EBITDA were to decline. The company's cash flow generation (FCF margin of 27.1% in Q3 2026) provides a cushion, but investors should monitor the pace of deleveraging.
Liquidity Tightens but Cash Buffer Holds
Based on reported figures, Emerson's current ratio fell to 0.90 in Q3 2026 from 1.18 a year earlier, while cash stood at $2.2B, indicating a tighter but still manageable liquidity position.
The current ratio below 1.0 suggests that current liabilities exceed current assets, which could be a concern if short-term obligations were to come due simultaneously. However, the company's robust operating cash flow (OCF of $1.4B in Q3 2026) and access to credit markets mitigate this risk. The quick ratio of 0.66 indicates a reliance on inventory, but given the low capital intensity and strong FCF conversion, the liquidity position appears adequate for near-term needs.
Misapplied P/E on Cyclical Earnings
The most commonly misapplied ratio for Emerson is the trailing P/E of 40.54, which overstates valuation because it is based on depressed earnings from the acquisition year; forward P/E of 25.04 is more indicative.
The trailing P/E is distorted by the inclusion of one-time charges and the dilutive impact of the National Instruments acquisition, which suppressed net income in recent quarters. A more appropriate metric is EV/EBITDA, which at 20.59x (forward 17.55x) better captures the company's cash-generating ability and is more comparable to peers like Rockwell (30.55x) and Eaton (31.63x). Investors should focus on forward multiples and EV-based metrics to assess Emerson's valuation, as the P/E is misleading given the current earnings cycle.