Is Emerson Electric Co. (EMR) Undervalued?
Based on the current stock price of $135.71 and a P/E ratio of 33.67,Emerson Electric Co. has a PEG ratio of 4.33.
The Short Answer:
Most analysts consider a PEG ratio below 1.0 to be undervalued. With a ratio of 4.33, EMR appears to be potentially overvalued relative to its growth rate of 7.78%.
Based on a PEG ratio of 3.57 (adjusted for dividends).
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How we analyzed EMR
We calculated the PEG (Price/Earnings-to-Growth) ratio by taking the Price-to-Earnings Ratio of 33.67and dividing it by the annual growth rate of 7.78%.
PEG = 33.67 (P/E) ÷ 7.78 (Growth) = 4.33
Frequently Asked Questions about EMR
What is the current PEG Ratio for Emerson Electric Co. (EMR)?+
The current PEG Ratio for Emerson Electric Co. is 4.33. A PEG ratio below 1.0 generally suggests the stock may be undervalued relative to its growth.
Is EMR stock undervalued right now?+
Based on the PEG ratio of 4.33, Emerson Electric Co. appears to be potentially overvalued. Investors typically look for a PEG ratio below 1.0 to find undervalued growth stocks.
What is the PEGY Ratio for EMR?+
The PEGY ratio for Emerson Electric Co. is 3.57. This metric accounts for dividend yield (1.64%), providing a more complete valuation picture.