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Emerson Electric Co (Emerson Electric Co) PE Ratio (TTM) : 5.71 (As of Apr. 24, 2024)


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What is Emerson Electric Co PE Ratio (TTM)?

The PE Ratio (TTM), or Price-to-Earnings ratio, or P/E Ratio, is a financial ratio used to compare a company's market price to its Earnings per Share (Diluted). As of today (2024-04-24), Emerson Electric Co's share price is $109.62. Emerson Electric Co's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Dec. 2023 was $19.21. Therefore, Emerson Electric Co's PE Ratio (TTM) for today is 5.71.


The historical rank and industry rank for Emerson Electric Co's PE Ratio (TTM) or its related term are showing as below:

EMR' s PE Ratio (TTM) Range Over the Past 10 Years
Min: 3.77   Med: 19.79   Max: 31.67
Current: 5.71


During the past 13 years, the highest PE Ratio (TTM) of Emerson Electric Co was 31.67. The lowest was 3.77. And the median was 19.79.


EMR's PE Ratio (TTM) is ranked better than
96.1% of 2254 companies
in the Industrial Products industry
Industry Median: 22.315 vs EMR: 5.71

Emerson Electric Co's Earnings per Share (Diluted) for the three months ended in Dec. 2023 was $0.25. Its Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Dec. 2023 was $19.21.

As of today (2024-04-24), Emerson Electric Co's share price is $109.62. Emerson Electric Co's EPS without NRI for the trailing twelve months (TTM) ended in Dec. 2023 was $4.67. Therefore, Emerson Electric Co's PE Ratio without NRI for today is 23.47.

During the past 13 years, Emerson Electric Co's highest PE Ratio without NRI was 27.39. The lowest was 11.79. And the median was 20.34.

Emerson Electric Co's EPS without NRI for the three months ended in Dec. 2023 was $1.22. Its EPS without NRI for the trailing twelve months (TTM) ended in Dec. 2023 was $4.67.

During the past 12 months, Emerson Electric Co's average EPS without NRI Growth Rate was 21.00% per year. During the past 3 years, the average EPS without NRI Growth Rate was 5.50% per year. During the past 5 years, the average EPS without NRI Growth Rate was 2.50% per year. During the past 10 years, the average EPS without NRI Growth Rate was 3.20% per year.

During the past 13 years, Emerson Electric Co's highest 3-Year average EPS without NRI Growth Rate was 18.70% per year. The lowest was -7.60% per year. And the median was 5.80% per year.

Emerson Electric Co's EPS (Basic) for the three months ended in Dec. 2023 was $0.25. Its EPS (Basic) for the trailing twelve months (TTM) ended in Dec. 2023 was $19.32.


Emerson Electric Co PE Ratio (TTM) Historical Data

The historical data trend for Emerson Electric Co's PE Ratio (TTM) 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.

* Premium members only.

Emerson Electric Co PE Ratio (TTM) Chart

Emerson Electric Co Annual Data
Trend Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23
PE Ratio (TTM)
Get a 7-Day Free Trial Premium Member Only Premium Member Only 18.02 20.24 24.66 13.53 4.22

Emerson Electric Co Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
PE Ratio (TTM) Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 12.19 10.72 3.95 4.22 5.07

Competitive Comparison of Emerson Electric Co's PE Ratio (TTM)

For the Specialty Industrial Machinery subindustry, Emerson Electric Co's PE Ratio (TTM), along with its competitors' market caps and PE Ratio (TTM) 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's PE Ratio (TTM) Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Emerson Electric Co's PE Ratio (TTM) distribution charts can be found below:

* The bar in red indicates where Emerson Electric Co's PE Ratio (TTM) falls into.



Emerson Electric Co PE Ratio (TTM) Calculation

The PE Ratio (TTM), or Price-to-Earnings ratio, or P/E Ratio, is a financial ratio used to compare a company's market price to its Earnings per Share (Diluted). It is the most widely used ratio in the valuation of stocks.

Emerson Electric Co's PE Ratio (TTM) for today is calculated as

PE Ratio (TTM)=Share Price/Earnings per Share (Diluted) (TTM)
=109.62/19.213
=5.71

Emerson Electric Co's Share Price of today is $109.62.
Emerson Electric Co's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $19.21.

* 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.

It can also be calculated from the numbers for the whole company:

PE Ratio (TTM)=Market Cap /Net Income

There are at least three kinds of PE Ratio (TTM)s used by different investors. They are Trailing Twelve Month PE Ratio (TTM) or PE Ratio (TTM) (TTM), Forward PE Ratio, or PE Ratio without NRI. A new PE Ratio (TTM) based on inflation-adjusted normalized PE Ratio (TTM) is called Shiller PE Ratio, after Yale professor Robert Shiller.

In the calculation of PE Ratio (TTM), the earnings per share used are the earnings per share over the past 12 months. For Forward PE Ratio, the earnings are the expected earnings for the next twelve months. In the case of PE Ratio without NRI, the reported earnings less the non-recurring items are used.

For Shiller PE Ratio, the earnings of the past 10 years are inflation-adjusted and averaged. Since it looks at the average over the last 10 years, Shiller PE Ratio is also called PE10.


Emerson Electric Co  (NYSE:EMR) PE Ratio (TTM) Explanation

The PE Ratio (TTM) can be viewed as the number of years it takes for the company to earn back the price you pay for the stock. For example, if a company earns $2 a share per year, and the stock is traded at $30, the PE Ratio (TTM) is 15. Therefore it takes 15 years for the company to earn back the $30 you paid for its stock, assuming the earnings stays constant over the next 15 years.

In real business, earnings never stay constant. If a company can grow its earnings, it takes fewer years for the company to earn back the price you pay for the stock. If a company's earnings decline it takes more years. As a shareholder, you want the company to earn back the price you pay as soon as possible. Therefore, lower P/E stocks are more attractive than higher P/E stocks so long as the PE Ratio (TTM) is positive. Also for stocks with the same PE Ratio (TTM), the one with faster growth business is more attractive.

If a company loses money, the PE Ratio (TTM) becomes meaningless.

To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the PE Ratio (TTM) divided by the growth ratio. He thinks a company with a PE Ratio (TTM) equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a PE Ratio (TTM) of 20, instead of a company growing 10% a year with a PE Ratio (TTM) of 10.

Because the PE Ratio (TTM) measures how long it takes to earn back the price you pay, the PE Ratio (TTM) can be applied to the stocks across different industries. That is why it is the one of the most important and widely used indicators for the valuation of stocks.

Similar to the PE Ratio without NRI or PS Ratio or Price-to-Operating-Cash-Flow or Price-to-Free-Cash-Flow , the PE Ratio (TTM) measures the valuation based on the earning power of the company. This is where it is different from the PB Ratio , which measures the valuation based on the company's balance sheet.


Be Aware

Investors need to be aware that the PE Ratio (TTM) can be misleading a lot of times, especially when the underlying business is cyclical and unpredictable. As Peter Lynch pointed out, cyclical businesses have higher profit margins at the peaks of the business cycles. Their earnings are high and PE Ratio (TTM)s are artificially low. It is usually a bad idea to buy a cyclical business when the PE Ratio (TTM) is low. A better ratio to identify the time to buy a cyclical businesses is the PS Ratio .

PE Ratio (TTM) can also be affected by non-recurring-items such as the sale of part of businesses. This may increase for the current year or quarter dramatically. But it cannot be repeated over and over. Therefore PE Ratio without NRI is a more accurate indication of valuation than PE Ratio (TTM).


Emerson Electric Co PE Ratio (TTM) Related Terms

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Emerson Electric Co (Emerson Electric Co) Business Description

Address
8000 West Florissant Avenue, P.O. Box 4100, St. Louis, MO, USA, 63136
Emerson Electric sells automation equipment and services under two segments: intelligent devices and software control. Within software and control, it also holds a majority interest in AspenTech, an industrial software business, and owns a test and measurement business that was formerly National Instruments. Intelligent devices also holds Emerson's tools business, which boasts several household brands, like Ridgid. Emerson's automation business is most known for its process manufacturing solutions, which consists of measurement and analytical instrumentation, as well as control valves and actuators, among other products and services. Nearly half of the firm's geographic sales come from the Americas.
Executives
Ram R. Krishnan officer: Executive Vice Pres & COO C/O EMERSON ELECTRIC CO., 8000 W. FLORISSANT AVENUE, ST. LOUIS MO 63136
Surendralal Lanca Karsanbhai officer: Exec Pres Auto Sols C/O EMERSON ELECTRIC CO., 8000 W. FLORISSANT AVENUE, ST. LOUIS MO 63136
Mckelvey James Morgan Jr. director 2645 SOUTH BAYSHORE #802, MIAMI FL 33133
Joshua B. Bolten director ROCK CREEK GLOBAL ADVISORS, 1401 I STREET NW, SUITE 1120, WASHINGTON DC 20005
Arthur F Golden director 450 LEXINGTON AVE, NEW YORK NY 10017
Easter William H Iii director 370 17TH ST, STE 2500, DENVER CO 80202
Vidya Ramnath officer: Senior VP & CMO C/O EMERSON ELECTRIC CO., 8000 W. FLORISSANT AVENUE, ST. LOUIS MO 63136
Nicholas J. Piazza officer: Senior VP & CPO C/O EMERSON ELECTRIC CO., 8000 W. FLORISSANT AVENUE, ST. LOUIS MO 63136
Lisa Flavin officer: Sr. VP & CCO 8300 MARYLAND AVENUE, ST. LOUIS MO 63105
Leticia Goncalves Lourenco director C/O EMERSON ELECTRIC CO., 8000 W. FLORISSANT AVENUE, ST. LOUIS MO 63136
Peter Zornio officer: Chief Technology Officer C/O EMERSON ELECTRIC CO., 8000 W. FLORISSANT AVENUE, ST. LOUIS MO 63136
Sara Yang Bosco officer: Sr. VP, Secy & Gen. Counsel 8000 W. FLORISSANT AVENUE, ST. LOUIS MO 63136
Frank J Dellaquila officer: Sr. V. P. and Controller C/O RELIANCE STEEL & ALUMINUM CO., 16100 N. 71ST STREET, SUITE 400, SCOTTSDALE AZ 85254
Mark J Bulanda officer: VP-Acquisitions & Development 8000 W. FLORISSANT AVENUE, ST. LOUIS MO 63136
Elizabeth Adefioye officer: Chief People Officer 5 WESTBROOK CORPORATE CENTER, WESTCHESTER IL 60154

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