---
title: Emerson Electric (EMR) — intrinsic value and fair price
canonical: https://sweetvaluelab.com/stocks/emr
ticker: EMR
as_of: 2026-10-17
sector: Industrials
industry: Industrial - Machinery
---
# Emerson Electric (EMR)

Emerson Electric (EMR) closed at $161.47 on Oct 16, 2026, overvalued by 84% vs its model value of $87.79 (from a five-year discounted cash flow).

## Key figures

| Figure | Value |
| --- | ---: |
| Last close | $161.47 (Oct 16, 2026) |
| Model value (from a five-year discounted cash flow) | $87.79 |
| Price vs model | overvalued by 84% vs model |
| Range of that model | $55.29 – $183.58 |
| Market value | $90.1B |
| P/E (fiscal 2025) | 40.0 |
| Net margin (fiscal 2025) | 12.7% |
| Free cash flow (fiscal 2025) | $2.7B |
| Dividend yield (trailing twelve months) | 1.37% |
| Beta | 1.21 |
| Cost of capital (WACC) | 9.05% |
| Business classification | Mature & Stable (Low/slowing growth (~9% recent), Moderate margins (13% net margin), Pays dividends, Highly cyclical earnings) |

## On the stock lists

| List | Place | Figure | Page |
| --- | ---: | ---: | --- |
| Near 52-week highs | #46 | −1.8% | https://sweetvaluelab.com/lists/near-52-week-highs |
| Dividend growth streaks | #4 | 53+ years | https://sweetvaluelab.com/lists/dividend-growth-streaks |

## Dividends

| Figure | Value |
| --- | ---: |
| Trailing dividend yield | 1.37% |
| Dividends per share, last 12 months | $2.22 |
| Dividends / free cash flow (fiscal 2025) | 44.7% |
| Raised | 53+ years in a row |
| Growth over 5 years | 1.9% a year |
| Latest payment | $0.555, ex-date Aug 14, 2026, paid Sep 10, 2026 |

| Year of payments | Dividends per share |
| --- | ---: |
| To Aug 12, 2021 | $2.02 |
| To Aug 11, 2022 | $2.06 |
| To Aug 10, 2023 | $2.08 |
| To Aug 16, 2024 | $2.10 |
| To Aug 15, 2025 | $2.11 |
| Trailing twelve months (to Aug 14, 2026) | $2.22 |

## Valuation models

Each model's value per share and the role the engine gave it for this business. The headline above is one model's value; every other model is listed with its own, and each has a page of its own under the valuation. Computed Oct 17, 2026.

| Model | Role | Value per share | Low | High |
| --- | --- | ---: | ---: | ---: |
| DCF · Perpetuity growth · 5y | primary | $87.79 | $55.29 | $183.58 |
| DCF · Perpetuity growth · 10y | cross check | $94.02 | $61.50 | $188.03 |
| DCF · EBITDA exit · 5y | cross check | $150.51 | $111.16 | $196.57 |
| DCF · EBITDA exit · 10y | cross check | $144.17 | $102.33 | $199.18 |
| P/E · peers | cross check | $150.13 | $137.64 | $171.75 |
| P/E · own history | cross check | $126.78 | $82.03 | $183.77 |
| PEG | sanity check | $152.84 | $152.84 | $152.84 |
| EV/EBITDA · peers | cross check | $154.40 | $133.64 | $224.82 |
| EV/Revenue · peers | cross check | $124.29 | $106.27 | $153.04 |
| Earnings power value | cross check | $22.13 | $16.08 | $30.59 |
| Dividend discount | cross check | $36.22 | $25.69 | $56.16 |

## Insider activity (SEC Form 4)

Past 90 days: 0 open-market buys ($0) and 2 open-market sales ($2.7M); 10b5-1 plan sales included.

| Date | Insider | Relationship | Transaction | Shares | Value |
| --- | --- | --- | --- | ---: | ---: |
| Aug 11, 2026 | Karsanbhai Surendralal Lanca | President & CEO | Open-market sell | 9,650 | $1.6M |
| Aug 6, 2026 | Train Michael H. | SVP & Chief Sustain Officer | Open-market sell | 7,329 | $1.2M |
| Aug 3, 2026 | Piazza Nicholas J. | Senior VP & CPO | Tax withholding | 1,453 | $221,593.4 |
| Aug 3, 2026 | Newstead Jennifer | Director | Grant / award | 622 | — |
| Jun 1, 2026 | Krishnan Ram R. | Executive Vice Pres & COO | Open-market sell | 11,500 | $1.6M |

## Recent SEC filings

| Filed | Form | What | Filing |
| --- | --- | --- | --- |
| Oct 13, 2026 | 8-K | 2.02 Results of Operations (Earnings); 9.01 Financial Statements and Exhibits | https://www.sec.gov/Archives/edgar/data/32604/000003260426000047/emr-20261013.htm |
| Aug 4, 2026 | 10-Q | Quarterly report | https://www.sec.gov/Archives/edgar/data/32604/000003260426000043/emr-20260630.htm |
| Aug 4, 2026 | 8-K | 2.02 Results of Operations (Earnings); 9.01 Financial Statements and Exhibits | https://www.sec.gov/Archives/edgar/data/32604/000003260426000042/emr-20260804.htm |
| May 5, 2026 | 10-Q | Quarterly report | https://www.sec.gov/Archives/edgar/data/32604/000003260426000035/emr-20260331.htm |
| May 5, 2026 | 8-K | 2.02 Results of Operations (Earnings); 5.02 Departure/Election of Directors or Officers; 7.01 Regulation FD Disclosure; 9.01 Financial Statements and Exhibits | https://www.sec.gov/Archives/edgar/data/32604/000003260426000034/emr-20260505.htm |

## Superinvestors holding it (latest 13F)

| Manager | Quarter | Shares | Value |
| --- | --- | ---: | ---: |
| Jensen | 2026-06-30 | 73,691 | $10.5M |
| Mairs & Power | 2026-06-30 | 63,235 | $9.1M |
| Bridgewater | 2026-06-30 | 36,541 | $5.2M |
| Tweedy Browne | 2026-06-30 | 8,743 | $1.3M |

4 tracked managers in all.

## About

Emerson Electric Co. is an international technology and engineering firm that delivers diverse solutions to industrial, commercial, and residential clients across the Americas, Asia, the Middle East, Africa, and Europe. The company's operations are divided into two main segments: Automation Solutions, and Commercial & Residential Solutions. Through its Automation Solutions division, Emerson provides a range of products including advanced measurement and analytical instruments, industrial valves, and sophisticated process control software and systems. This segment caters to a broad spectrum of industries such as oil and gas, refining, chemical processing, power generation, life sciences, food and beverage, automotive manufacturing, pulp and paper production, metals and mining, and municipal water utilities. The Commercial & Residential Solutions segment focuses on climate control and othe…

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Source: https://sweetvaluelab.com/stocks/emr (SweetValueLab, free, no account). Prices and statements from Financial Modeling Prep; filings from SEC EDGAR. Research and educational data, not investment advice; nothing here is a recommendation to buy, sell or hold any security.