Latest Ratios: P/E Ratio 34.1x · EV/EBITDA 17.7x · 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 | $77.2B | $74.3B | $62.8B | $55.7B | $43.4B | $56.7B | $39.8B | $41.5B | $48.7B | $40.4B | $35.3B |
| Enterprise Value | $89.5B | $86.6B | $67.5B | $56.3B | $52.3B | $61.4B | $44.3B | $45.7B | $52.3B | $42.0B | $38.7B |
| P/E Ratio → | 34.14 | 32.47 | 31.90 | 25.91 | 15.91 | 24.62 | 20.24 | 17.99 | 22.08 | 26.64 | 21.56 |
| P/S Ratio | 4.29 | 4.13 | 3.59 | 3.68 | 3.14 | 4.38 | 2.37 | 2.26 | 2.79 | 2.65 | 2.43 |
| P/B Ratio | 3.85 | 3.66 | 2.28 | 2.10 | 2.66 | 5.71 | 4.71 | 5.02 | 5.41 | 4.61 | 4.63 |
| P/FCF | 28.96 | 27.87 | 21.55 | 203.47 | 18.16 | 18.93 | 15.63 | 17.20 | 21.39 | 28.16 | 14.49 |
| P/OCF | 24.93 | 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 | 3.71 | 3.79 | 4.75 | 2.64 | 2.49 | 3.01 | 2.75 | 2.67 |
| EV / EBITDA | 17.71 | 17.14 | 15.51 | 14.77 | 16.35 | 22.57 | 12.18 | 11.60 | 14.10 | 12.64 | 11.79 |
| EV / EBIT | 25.33 | 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 |
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% | 8.9% | 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% |
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 | 0.32 | 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 |
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 | 1.5% | 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 | 2.9% | 3.1% | 3.1% | 3.9% | 6.3% | 4.1% | 4.9% | 5.6% | 4.5% | 3.8% | 4.6% |
| FCF Yield | 3.5% | 3.6% | 4.6% | 0.5% | 5.5% | 5.3% | 6.4% | 5.8% | 4.7% | 3.6% | 6.9% |
| Buyback Yield | 1.6% | 1.7% | 1.0% | 4.0% | 1.2% | 0.9% | 2.4% | 3.0% | 2.1% | 1.0% | 1.7% |
| Total Shareholder Yield | 3.1% | 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 |
Integration and cyclical exposure
According to current market data, Emerson's TTM P/E of 35.52 suggests investors are pricing in significant future margin expansion, a valuation that appears elevated compared to historical norms and peers like Pentair, which trades at a more modest 19.30 times earnings despite similar industrial exposure.
The forward P/E of 22.05 indicates that the market expects a substantial earnings recovery as the company integrates recent acquisitions and sheds legacy assets. This valuation gap relative to peers suggests that the market is currently assigning a 'software-like' multiple to Emerson's automation business, which warrants caution if organic growth fails to accelerate.
Based on reported financial statements, Emerson's ROIC has remained suppressed at approximately 2.0% in 2026Q2, a figure that significantly lags behind industrial peers like Rockwell Automation and Eaton, which consistently generate double-digit returns on invested capital through more established operational footprints.
The persistent low ROIC appears to be a direct consequence of the massive goodwill accumulation from recent acquisitions, which inflates the capital base without immediate corresponding earnings growth. Investors should monitor whether management can improve asset utilization as the integration of National Instruments matures and synergies begin to materialize.
As reported in recent quarterly filings, Emerson's cash conversion cycle has trended upward to 102 days in 2026Q2, driven by an inventory turnover period of 101 days, which suggests that the company is carrying significant stock levels that may be hindering overall working capital efficiency.
The extended DIO indicates that the company's shift toward complex, software-integrated hardware may be creating inventory bottlenecks. This inefficiency, when compared to leaner industrial peers, suggests that Emerson's supply chain management is currently struggling to balance the requirements of long-cycle project fulfillment with the need for faster cash conversion.
According to recent balance sheet data, Emerson's debt-to-EBITDA ratio has climbed to 15.23 in 2026Q2, a marked increase from historical levels that indicates a more aggressive use of leverage to fund the company's ongoing structural transformation and recent high-profile portfolio acquisitions.
While the interest coverage ratio of 7.97 remains manageable, the rapid expansion of debt levels leaves the company with less room for error should industrial demand soften. This leverage profile appears more vulnerable than that of peers like AMETEK, which maintains a much cleaner balance sheet with significantly lower debt-to-equity ratios.
Based on an analysis of valuation metrics, the P/E ratio is frequently misapplied to Emerson, as it fails to account for the non-recurring costs and accounting noise associated with the company's aggressive divestiture of its Climate Technologies business and the subsequent integration of National Instruments.
Investors should instead focus on EV/EBITDA or adjusted free cash flow yields to better capture the underlying earning power of the core automation business. Relying on headline P/E ratios obscures the true operational progress being made, as the denominator is currently distorted by the structural overhaul of the firm's portfolio.
Includes 30+ ratios · 30 years · Updated daily
DCF models, multiple analysis, and analyst estimates.
10-year return with dividends reinvested.
See how regular investing compounds over time.
Compare growth, multiples, and margins vs sector.
Quick answers to the most common questions about buying EMR stock.
Emerson Electric Co.'s current P/E ratio is 34.1x. 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 17.7x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 11.4x.
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 34.1x. 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 1.53% 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.