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Emerson Electric (EMR) has drawn attention after recent share price moves, with a one-month return of about 11% and a past three-month return near 5%, prompting closer scrutiny of its fundamentals.
For investors tracking longer performance, the stock’s one-year total return of about 15% and three-year total return near 71% sit alongside a reported annual revenue of US$18.0b and net income of US$2.3b.
See our latest analysis for Emerson Electric.
Recent trading has been a bit choppy, with a 10.7% 1 month share price return and an 8.2% year to date share price return sitting alongside a 15.0% 1 year total shareholder return. This suggests momentum is still broadly positive despite short term pullbacks around the current US$146.96 level.
If Emerson Electric’s moves have caught your eye, it could be a good moment to broaden your watchlist with other industrial names and check out aerospace and defense stocks.
With the shares near US$146.96, trading about 6% below the average analyst price target and with an estimated intrinsic discount near 33%, the key question is whether Emerson is still undervalued or whether the market is already pricing in future growth.
With Emerson Electric last closing at $146.96 and the most followed narrative pointing to a fair value near $155.81, there is a modest valuation gap that hinges on how you see its automation and software story playing out.
The accelerating adoption of digital automation and artificial intelligence solutions in global industrial markets is fueling strong demand for Emerson’s advanced software platforms and AI-enabled products, such as Ovation 4.0 and Nigel AI adviser, which is resulting in robust order growth and positions the company for sustained revenue expansion.
Curious what kind of revenue growth, margin uplift and long term earnings power need to line up for that valuation gap to make sense? The narrative leans on specific growth rates, profit levels and a future earnings multiple that might surprise you. Want to see which assumptions really carry the weight here and how sensitive that fair value is to even small changes in those inputs?
Result: Fair Value of $155.81 (UNDERVALUED)
Have a read of the narrative in full and understand what’s behind the forecasts.
However, you still need to weigh risks, such as softer demand in key end markets and potential bumps integrating software acquisitions, that could challenge this upside story.
Find out about the key risks to this Emerson Electric narrative.
That 5.7% discount to fair value sits awkwardly next to where the market is actually pricing Emerson today. The shares trade on a P/E of 36.2x, compared with 34.4x for the US Electrical industry, a peer average of 48.3x, and a fair ratio of 32.2x.
In plain terms, the market is already paying more than the fair ratio suggests. This can mean less room for error if growth or margins fall short, even though peers trade at higher earnings multiples. The question for you is whether you see that extra P/E premium as a source of comfort or as a sign of crowding.
See what the numbers say about this price — find out in our valuation breakdown.
NYSE:EMR P/E Ratio as at Feb 2026
If you see the story differently or just like to test the numbers yourself, you can rebuild the thesis in a few quick steps with Do it your way.
A great starting point for your Emerson Electric research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.
If Emerson Electric is on your radar, do yourself a favor and scan a few more ideas, because the next opportunity you care about might be sitting in plain sight.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include EMR.
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