Emerson Electric Co. (EMR) Financial Ratios
30 years of historical data (1996–2025) · Industrials · Industrial - Machinery
EV/EBITDA
↓
18.89
+9% vs avg
5yr avg: 17.27
30Y Low7.2·High22.6
P/FCF
↑
31.19
↓-46% vs avg
5yr avg: 58.00
30Y Low11.9·High28.2
P/B Ratio
↓
4.13
↑+26% vs avg
5yr avg: 3.28
30Y Low2.1·High5.7
ROE
↓
9.6%
↑-63% vs avg
5yr avg: 25.6%
30Y Low2%·High62%
Debt/EBITDA
↑
2.72
+6% vs avg
5yr avg: 2.57
30Y Low0.8·High3.3
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
EMR Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
Emerson Electric Co. trades at 36.6x earnings, 40% above its 5-year average of 26.2x, sitting at the 97th percentile of its historical range. Compared to the Industrials sector median P/E of 25.9x, the stock trades at a premium of 42%. On a free-cash-flow basis, the stock trades at 31.2x P/FCF, 46% below the 5-year average of 58.0x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $83.2B | $74.3B | $62.8B | $55.7B | $43.4B | $56.7B | $39.8B | $41.5B | $48.7B | $40.4B | $35.3B |
| Enterprise Value | $95.4B | $86.6B | $67.5B | $56.3B | $52.3B | $61.4B | $44.3B | $45.7B | $52.3B | $42.0B | $38.7B |
| P/E Ratio → | 36.61 | 32.47 | 31.90 | 25.91 | 15.91 | 24.62 | 20.24 | 17.99 | 22.08 | 26.64 | 21.56 |
| P/S Ratio | 4.62 | 4.13 | 3.59 | 3.68 | 3.14 | 4.38 | 2.37 | 2.26 | 2.79 | 2.65 | 2.43 |
| P/B Ratio | 4.13 | 3.66 | 2.28 | 2.10 | 2.66 | 5.71 | 4.71 | 5.02 | 5.41 | 4.61 | 4.63 |
| P/FCF | 31.19 | 27.87 | 21.55 | 203.47 | 18.16 | 18.93 | 15.63 | 17.20 | 21.39 | 28.16 | 14.49 |
| P/OCF | 26.85 | 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
EMR EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
Emerson Electric Co.'s enterprise value stands at 18.9x EBITDA, 9% above its 5-year average of 17.3x. The Industrials sector median is 13.9x, placing the stock at a 36% premium on an enterprise-value basis.
| 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 | 3.71 | 3.79 | 4.75 | 2.64 | 2.49 | 3.01 | 2.75 | 2.67 |
| EV / EBITDA | 18.89 | 17.14 | 15.51 | 14.77 | 16.35 | 22.57 | 12.18 | 11.60 | 14.10 | 12.64 | 11.79 |
| EV / EBIT | 27.01 | 26.06 | 28.83 | 17.78 | 19.66 | 31.87 | 17.66 | 14.94 | 18.24 | 16.57 | 15.29 |
| EV / FCF | — | 32.45 | 23.19 | 205.33 | 21.87 | 20.51 | 17.41 | 18.96 | 23.00 | 29.27 | 15.90 |
EMR Profitability
Margins and return-on-capital ratios measuring operating efficiency
Emerson Electric Co. earns an operating margin of 19.6%, above the Industrials sector average of 4.9%. Operating margins have expanded from 18.2% to 19.6% over the past 3 years, signaling improving operational efficiency. ROE of 9.6% is modest. ROIC of 8.2% represents adequate returns on invested capital versus a sector median of 6.3%.
Margins
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% |
Return on Capital
| 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% | 8.9% | 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% |
EMR Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
Emerson Electric Co. carries a Debt/EBITDA ratio of 2.7x, which is moderately leveraged (14% below the sector average of 3.2x). Net debt stands at $12.2B ($13.8B total debt minus $1.5B cash). Interest coverage of 8.6x is adequate, though a cyclical earnings downturn could tighten the margin of safety.
| 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 | 0.32 | 0.65 | 0.71 | 0.93 | 0.69 | 0.53 | 0.53 | 0.87 |
| Debt / EBITDA | 2.72 | 2.72 | 1.92 | 2.25 | 3.34 | 2.60 | 2.16 | 1.45 | 1.28 | 1.40 | 2.02 |
| Net Debt / Equity | — | 0.60 | 0.17 | 0.02 | 0.54 | 0.48 | 0.54 | 0.51 | 0.41 | 0.18 | 0.45 |
| Net Debt / EBITDA | 2.42 | 2.42 | 1.09 | 0.13 | 2.78 | 1.74 | 1.25 | 1.07 | 0.99 | 0.48 | 1.05 |
| Debt / FCF | — | 4.58 | 1.64 | 1.86 | 3.71 | 1.58 | 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 |
EMR Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
The current ratio of 0.88x is below 1.0, meaning current liabilities exceed current assets — though the company's $1.5B cash position helps mitigate short-term liquidity concerns. The current ratio has declined from 2.75x to 0.88x over the past 3 years.
| 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 |
EMR Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Emerson Electric Co. returns 2.9% to shareholders annually — split between a 1.4% dividend yield and 1.5% buyback yield. A payout ratio of 52.0% is moderate and appears sustainable, balancing shareholder returns with reinvestment capacity. The earnings yield of 2.7% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
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% |
Total Shareholder Return Metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 2.7% | 3.1% | 3.1% | 3.9% | 6.3% | 4.1% | 4.9% | 5.6% | 4.5% | 3.8% | 4.6% |
| FCF Yield | 3.2% | 3.6% | 4.6% | 0.5% | 5.5% | 5.3% | 6.4% | 5.8% | 4.7% | 3.6% | 6.9% |
| Buyback Yield | 1.5% | 1.7% | 1.0% | 4.0% | 1.2% | 0.9% | 2.4% | 3.0% | 2.1% | 1.0% | 1.7% |
| Total Shareholder Yield | 2.9% | 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 |
Peer Comparison
Compare EMR with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 EMRYou | $83B | 36.6 | 18.9 | 31.2 | 52.8% | 19.6% | 9.6% | 8.2% | 2.7 |
 HON | $137B | 29.5 | 20.0 | 25.5 | 36.9% | 17.5% | 27.3% | 12.6% | 4.3 |
 ROK | $52B | 59.9 | 31.4 | 38.0 | 48.1% | 17.1% | 23.5% | 15.1% | 2.1 |
 ETN | $163B | 40.3 | 29.1 | 36.6 | 37.6% | 19.1% | 21.5% | 13.6% | 1.9 |
 AME | $55B | 37.7 | 30.4 | 33.1 | 36.4% | 26.2% | 14.6% | 12.1% | 1.2 |
 PNR | $13B | 20.2 | 14.8 | 17.3 | 40.5% | 20.5% | 17.6% | 12.1% | 1.7 |
 FELE | $4B | 31.1 | 14.0 | 23.0 | 35.5% | 12.7% | 11.3% | 14.7% | 0.8 |
 RBC | $20B | 80.9 | 43.6 | 83.6 | 44.4% | 22.6% | 8.5% | 6.9% | 2.1 |
 NDSN | $16B | 33.7 | 20.8 | 24.2 | 55.2% | 25.5% | 16.2% | 10.5% | 2.4 |
 IEX | $16B | 34.0 | 18.8 | 26.3 | 44.5% | 20.8% | 12.4% | 10.4% | 2.0 |
 FLS | $9B | 27.8 | 14.8 | 21.6 | 34.6% | 13.0% | 16.1% | 14.2% | 2.7 |
| Industrials Median | — | 25.9 | 13.9 | 20.6 | 32.8% | 4.9% | 8.2% | 6.3% | 3.2 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
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Start ComparisonEMR — Frequently Asked Questions
Quick answers to the most common questions about buying EMR stock.
What is Emerson Electric Co.'s P/E ratio?
Emerson Electric Co.'s current P/E ratio is 36.6x. The historical average is 25.3x. This places it at the 97th percentile of its historical range.
What is Emerson Electric Co.'s EV/EBITDA?
Emerson Electric Co.'s current EV/EBITDA is 18.9x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 11.4x.
What is Emerson Electric Co.'s ROE?
Emerson Electric Co.'s return on equity (ROE) is 9.6%. The historical average is 21.8%.
Is EMR stock overvalued?
Based on historical data, Emerson Electric Co. is trading at a P/E of 36.6x. This is at the 97th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
What is Emerson Electric Co.'s dividend yield?
Emerson Electric Co.'s current dividend yield is 1.42% with a payout ratio of 52.0%.
What are Emerson Electric Co.'s profit margins?
Emerson Electric Co. has 52.8% gross margin and 19.6% operating margin. Operating margin between 10-20% is typical for established companies.
How much debt does Emerson Electric Co. have?
Emerson Electric Co.'s Debt/EBITDA ratio is 2.7x, indicating moderate leverage. A ratio between 2-4x is manageable but warrants monitoring.