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Emerson Electric CoMEX:EMR 76 Debt-to-EBITDA is 2.76 as of Mar. 2026, which is 31% above its 10-year median of 2.11. GuruFocus rates MEX:EMR with a GF Score™ of 76/100 and a GF Value™ of MXN2,137.63 (Modestly Overvalued). The stock has 7 warning signs investors should review. Among 2,332 Industrial Products companies, Emerson Electric Co ranks worse than 62.61% on this metric.
Debt-to-EBITDA measures a company's ability to pay off its debt.
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
The historical rank and industry rank for Emerson Electric Co's Debt-to-EBITDA or its related term are showing as below:
MEX:EMR'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: 1.31 Med: 2.11 Max: 3.05
Current: 2.74
During the past 13 years, the highest Debt-to-EBITDA Ratio of Emerson Electric Co was 3.05. The lowest was 1.31. And the median was 2.11.
MEX:EMR's Debt-to-EBITDA is ranked worse than 62.61% of 2332
companies
in the Industrial Products industry
Industry Median: 1.7
vs MEX:EMR: 2.74
Emerson Electric Co (MEX:EMR) Debt-to-EBITDA Explanation
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.
According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
Emerson Electric Co Debt-to-EBITDA Related Terms
Emerson Electric Co Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for Emerson Electric Co's Debt-to-EBITDA can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
MEX:EMR vs ITW, CMI, AME: Debt-to-EBITDA Comparison
For the Specialty Industrial Machinery subindustry, Emerson Electric Co's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Emerson Electric Co Debt-to-EBITDA vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Emerson Electric Co's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Emerson Electric Co's Debt-to-EBITDA falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data,
the EBITDA data used here is four times the quarterly (Mar. 2026) EBITDA data.
Emerson Electric Co (MEX:EMR) has a Debt-to-EBITDA of 2.76 as of Mar. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Emerson Electric Co. This is 31% above median its historical median of 2.11. Over the past decade, Emerson Electric Co's Debt-to-EBITDA has ranged from 1.31 to 3.05. According to the industry distribution chart, Emerson Electric Co ranks #1460 out of 2332 companies in the Industrial Products industry, placing it in the top 62.6%.
Is Emerson Electric Co's Debt-to-EBITDA too high?
Emerson Electric Co's current Debt-to-EBITDA of 2.76 is 31% above median its 10-year median of 2.11. Over the past 10 years, this metric has ranged from a low of 1.31 to a high of 3.05. The Industrial Products industry median Debt-to-EBITDA is 1.70. Emerson Electric Co's value of 2.76 is 62.4% above this industry median. Based on the distribution chart, Emerson Electric Co ranks #1460 out of 2332 companies in the Industrial Products industry, which is below the industry midpoint. Overall, Emerson Electric Co has a GF Score™ of 76/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Emerson Electric Co's Debt-to-EBITDA compare to ITW and CMI?
According to the Industrial Products industry distribution chart, Emerson Electric Co ranks #1460 out of 2332 companies for Debt-to-EBITDA. This places Emerson Electric Co in the lower half of its industry. The industry median Debt-to-EBITDA is 1.70. Emerson Electric Co's value of 2.76 is 62.4% above this benchmark. Historically, Emerson Electric Co's own Debt-to-EBITDA has ranged from 1.31 to 3.05 over the past decade. While the company's 10-year median is 2.11 vs. the industry median of 1.70, Emerson Electric Co has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-EBITDA for an Industrial Products company?
The median Debt-to-EBITDA among Industrial Products companies is 1.70, based on 2,332 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Emerson Electric Co's current Debt-to-EBITDA of 2.76 is 62.4% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Emerson Electric Co. For the Industrial Products industry, the median Debt-to-EBITDA is 1.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Emerson Electric Co's current Debt-to-EBITDA is 2.76, which is 31% above median its own 10-year median of 2.11. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Emerson Electric Co stock overvalued right now?
Based on GuruFocus' analysis, Emerson Electric Co (MEX:EMR) is currently considered Modestly Overvalued. The stock's GF Value™ is MXN2,137.63, compared to a current price of MXN2,439.00 — trading 14.1% above its estimated fair value. The current Debt-to-EBITDA is 2.76, which is 31% above median its 10-year median of 2.11 and 62.4% above the Industrial Products industry median of 1.70. Emerson Electric Co's overall GF Score™ is 76/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For Emerson Electric Co (MEX:EMR), the current Debt-to-EBITDA is 2.76 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Emerson Electric Co (MEX:EMR) Overvalued in 2026?
Based on GuruFocus' analysis, Emerson Electric Co stock appears to be overvalued.
The current stock price of MXN2,439.00 is trading 14.1% above its estimated GF Value™ of MXN2,137.63.
GuruFocus considers Emerson Electric Co to be Modestly Overvalued.
Key valuation signals for MEX:EMR:
Debt-to-EBITDA: 2.76 (31% above median its 10-year median of 2.11)
GF Value™: MXN2,137.63 vs. price of MXN2,439.00 (14.1% above fair value)
Industry Position: 62.4% above the Industrial Products median (#1460 of 2332)
No single metric tells the full story. See the MEX:EMR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Founded in 1890 as the first manufacturer of electric fans in North America, Emerson Electric has become a leading industrial automation player through the acquisition of established brands. Emerson organizes its business into seven segments that sell a wide range of automation software, power tools, and automation hardware such as valves, gauges, and switches. In recent years, Emerson divested its climate technology and consumer businesses to become more of a pure-play industrial automation company. The automation of a factory is an enticing long-term proposition for manufacturers, helping reduce accident rates and raise uptime and productivity.
76GF Score
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