EMR

Emerson Electric CompanyIndustrials / Specialty Industrial MachineryINTACT

Emerson Electric Co., a technology and software company, provides various solutions in the Americas, Asia, the Middle East, Africa, and Europe. It operates through Final Control, Measurement & Analytical, Discrete Automation, Safety & Productivity, Control Systems & Software, and Test & Measurement segments. The Final Control segment provides control valves, isolation valves, shutoff valves, pressure relief valves, pressure safety valves, actuators, and regulators for process and hybrid industries under Anderson Greenwood, Bettis, Crosby, Fisher, Keystone, KTM, and Vanessa brands. The Measurement & Analytical segment supplies intelligent instrumentation measuring the physical properties of liquids or gases, such as pressure, temperature, level, flow, acoustics, corrosion, pH, conductivity, water quality, toxic gases, and flame under the Flexim, Micro Motion, and Rosemount brands. The Discrete Automation segment includes solenoid valves, pneumatic valves, valve position indicators, pneumatic cylinders and actuators, air preparation equipment, pressure and temperature switches, electric linear motion solutions, programmable automation control systems and software, electrical distribution equipment, and materials joining solutions used primarily in discrete industries under the Afag, Appleton, ASCO, Aventics, Branson, Movicon, PACSystems, SolaHD, TESCOM, and TopWorx brands. The Safety & Productivity segment delivers tools for professionals and homeowners that support infrastructure, promote safety, and enhance productivity under the Greenlee, Klauke, ProTeam, and RIDGID brands. The Control Systems & Software segment provides control systems and software that control plant processes by collecting and analyzing information from measurement devices in the plant under the DeltaV and Ovation brands. The Test & Measurement offers software-connected automated test and measurement systems. The company was incorporated in 1890 and is headquartered in Saint Louis, Missouri.

Share Price
$151.61
52W: $122.64 - $166.35
DCF Fair Value
$155.63
+2.6%
P/E (TTM)
33.2x
ROIC
20.2%
Operating Margin
26.9%
FCF Yield
4.4%
Debt / Equity
0.68x
Piotroski Score
8/9
Altman Z-Score
3.3
Market Cap
$84.9B

Price vs. Intrinsic Value Corridor

Modest Value ($151.61 vs $155.63 DCF)

Historical market price overlaid against conservative DCF Fair Value & Benjamin Graham Margin of Safety bands.

Period Return (1Y)
()
Period Range
$ - $
DCF Fair Value
$155.63
MOS Buy Target (-25%)
$116.72
Valuation Overlays:

2-Stage Discounted Cash Flow (DCF) Workbench

Conservative intrinsic value model based on owner cash generation over a 10-year investment horizon. Opens with LocalAlpha's baseline assumptions (matching the fair value shown above) — adjust any input to stress-test.

Current Market Price
$151.61
DCF Fair Value
$155.94
+2.8%
$3,706M
$100M$3,706M (Reported)$50,000M
13.5%
-5%10% (Target)35%
4.5%
0%5%20%
9.0%
6%9% (Standard)15% (High Risk)
2.5%
1% (GDP Floor)2.5% (Inflation)4.0%
$11,600M
-$100B CashBalance Sheet+$150B Debt
10-Yr PV of Cash Flows
$41.0B
PV of Terminal Value
$57.9B
Implied Enterprise Value
$98.9B
Implied Equity Value
$87.3B
YearYr 1Yr 2Yr 3Yr 4Yr 5Yr 6Yr 7Yr 8Yr 9Yr 10
Projected FCF ($M)$4,206$4,774$5,419$6,150$6,980$7,295$7,623$7,966$8,324$8,699
Present Value (PV)$3,859$4,018$4,184$4,357$4,537$4,350$4,170$3,998$3,833$3,675

Benjamin Graham & Buffett Value Models

Classical deep value metrics based on asset backing, normalized earnings power, and owner cash yield.

Graham Number-147.4% Premium
$61.29

Calculated as √(22.5 × EPS × BVPS). The maximum theoretical price a defensive investor should pay based purely on asset book value and current earnings.

EPS: $4.57BVPS: $36.53
Revised Graham Formula-26.1% Premium
$120.23

Formula: V = (EPS × (8.5 + 2g) × 4.4) / Y where g is the conservative 7-10 yr growth rate and Y is AAA Bond Yield.

Buffett Owner Earnings4.1% Yield
$6.29 / share

True distributable cash flow: Net Income + D&A - Maintenance CapEx. Reflects the cash Buffett would extract without hurting unit volume.

Total: $3.5BYield: 4.1%

Reverse DCF: Market Growth Expectation

FAIR BARRIER
7.4% CAGR (Next 10 Yrs)

At the current price of $151.61, the market is assuming the business will compound Free Cash Flow at 7.4% per year for the next decade with a 9% hurdle rate.

Value Investor Verdict
✓ Low market hurdle: Easy for a wide-moat compounder to beat.
Autonomous Thesis Underwriting

Surveil EMR with Mathematical Margin of Safety Rules

Set non-negotiable floor rules for Emerson Electric Company. If a newly filed quarterly 10-Q breaks your ROIC floor, operating margin boundary, or balance sheet leverage rules, receive an autonomous breach audit within 15 minutes.

Buffett Quality

ROIC > 15% • Margin > 15% • D/E < 0.5x

Margin Floor Guard

Current Margin 26.9% • Floor > 10%

Solvency Guard

Altman-Z > 2.6 • Current Ratio > 1.5x

Frequently Asked Questions: Emerson Electric Company (EMR) Intrinsic Valuation

Audited fundamentals, DCF intrinsic value sensitivity, and thesis break detection parameters for Emerson Electric Company.

Based on institutional multi-stage Discounted Cash Flow (DCF) modeling on audited SEC cash flows, Emerson Electric Company has an estimated DCF intrinsic fair value of $155.63 per share compared to its current market price of $151.61. This represents an estimated 2.6% margin of safety (trading below fair value). Additionally, its classic Benjamin Graham Number stands at $61.29.

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