Emerson Electric Co. (EMR) | Valuation Ratios

Current Valuation Ratios

Emerson Electric Co., current price multiples

	Emerson Electric Co.	Industrials
Selected Financial Data
Current share price (P)	$ 59.36
No. shares of common stock outstanding	724,139,345
Growth rate (g)	12.02%

Earnings per share (EPS)	$ 2.72
Next year expected EPS	$ 3.04
Operating profit per share	$ 4.61
Sales per share	$ 33.71
Book value per share (BVPS)	$ 14.22
Ratios (Price Multiples)
Price to earnings (P/E)	21.84	18.79
Price to next year expected earnings	19.50	17.05
Price-earnings-growth (PEG)	1.82	1.85
Price to operating profit (P/OP)	12.87	14.34
Price to sales (P/S)	1.76	1.64
Price to book value (P/BV)	4.18	3.35

If company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.

Otherwise, if company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.

Emerson Electric Co., historical price multiples

	Sep 30, 2012	Sep 30, 2011	Sep 30, 2010	Sep 30, 2009	Sep 30, 2008	Sep 30, 2007
Price to earnings (P/E)	17.84	14.33	19.16	18.45	10.97	19.81
Price to operating profit (P/OP)	10.52	9.22	13.21	11.85	6.87	12.69
Price to sales (P/S)	1.44	1.47	1.97	1.52	1.07	1.87
Price to book value (P/BV)	3.41	3.42	4.24	3.72	2.90	4.82

Ratio	Description	The company
P/E ratio	The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings.	Emerson Electric Co.'s P/E ratio declined from 2010 to 2011 but then increased from 2011 to 2012 not reaching 2010 level.
P/OP ratio	Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit.	Emerson Electric Co.'s P/OP ratio declined from 2010 to 2011 but then slightly increased from 2011 to 2012.
P/S ratio	An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative.	Emerson Electric Co.'s P/S ratio declined from 2010 to 2011 and from 2011 to 2012.
P/BV ratio	The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company's required rate of return and its actual rate of return.	Emerson Electric Co.'s P/BV ratio declined from 2010 to 2011 and from 2011 to 2012.

	Sep 30, 2012	Sep 30, 2011	Sep 30, 2010	Sep 30, 2009	Sep 30, 2008	Sep 30, 2007
No. shares of common stock outstanding¹	724,139,345	735,749,636	752,657,107	752,147,714	767,063,304	787,228,656
Selected Financial Data (USD $)
Net earnings common stockholders (in millions)	1,968	2,480	2,164	1,724	2,412	2,136
Earnings per share (EPS)	2.72	3.37	2.88	2.29	3.14	2.71
Share price^1, 2	48.49	48.31	55.10	42.30	34.51	53.76
P/E Ratio, Comparison to Industry
Emerson Electric Co.	17.84	14.33	19.16	18.45	10.97	19.81
Industry, Industrials	17.43	15.03	18.85	18.75	8.52	–

¹ Data adjusted for splits and stock dividends.
² Close price on the filing date of Emerson Electric Co.'s Annual Report.

Ratio	Description	The company
P/E ratio	The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings.	Emerson Electric Co.'s P/E ratio declined from 2010 to 2011 but then increased from 2011 to 2012 not reaching 2010 level.

	Sep 30, 2012	Sep 30, 2011	Sep 30, 2010	Sep 30, 2009	Sep 30, 2008	Sep 30, 2007
No. shares of common stock outstanding¹	724,139,345	735,749,636	752,657,107	752,147,714	767,063,304	787,228,656
Selected Financial Data (USD $)
Earnings from continuing operations before interest and income taxes (in millions)	3,339	3,854	3,140	2,684	3,853	3,335
Operating profit per share	4.61	5.24	4.17	3.57	5.02	4.24
Share price^1, 2	48.49	48.31	55.10	42.30	34.51	53.76
P/OP Ratio, Comparison to Industry
Emerson Electric Co.	10.52	9.22	13.21	11.85	6.87	12.69
Industry, Industrials	13.30	11.87	13.21	12.22	7.31	–

¹ Data adjusted for splits and stock dividends.
² Close price on the filing date of Emerson Electric Co.'s Annual Report.

Ratio	Description	The company
P/OP ratio	Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit.	Emerson Electric Co.'s P/OP ratio declined from 2010 to 2011 but then slightly increased from 2011 to 2012.

	Sep 30, 2012	Sep 30, 2011	Sep 30, 2010	Sep 30, 2009	Sep 30, 2008	Sep 30, 2007
No. shares of common stock outstanding¹	724,139,345	735,749,636	752,657,107	752,147,714	767,063,304	787,228,656
Selected Financial Data (USD $)
Net sales (in millions)	24,412	24,222	21,039	20,915	24,807	22,572
Sales per share	33.71	32.92	27.95	27.81	32.34	28.67
Share price^1, 2	48.49	48.31	55.10	42.30	34.51	53.76
P/S Ratio, Comparison to Industry
Emerson Electric Co.	1.44	1.47	1.97	1.52	1.07	1.87
Industry, Industrials	1.52	1.48	1.61	1.27	0.79	–

¹ Data adjusted for splits and stock dividends.
² Close price on the filing date of Emerson Electric Co.'s Annual Report.

Ratio	Description	The company
P/S ratio	An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative.	Emerson Electric Co.'s P/S ratio declined from 2010 to 2011 and from 2011 to 2012.

	Sep 30, 2012	Sep 30, 2011	Sep 30, 2010	Sep 30, 2009	Sep 30, 2008	Sep 30, 2007
No. shares of common stock outstanding¹	724,139,345	735,749,636	752,657,107	752,147,714	767,063,304	787,228,656
Selected Financial Data (USD $)
Common stockholders' equity (in millions)	10,295	10,399	9,792	8,555	9,113	8,772
Book value per share (BVPS)	14.22	14.13	13.01	11.37	11.88	11.14
Share price^1, 2	48.49	48.31	55.10	42.30	34.51	53.76
P/BV Ratio, Comparison to Industry
Emerson Electric Co.	3.41	3.42	4.24	3.72	2.90	4.82
Industry, Industrials	3.10	3.06	3.18	2.60	2.03	–

¹ Data adjusted for splits and stock dividends.
² Close price on the filing date of Emerson Electric Co.'s Annual Report.

Ratio	Description	The company
P/BV ratio	The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company's required rate of return and its actual rate of return.	Emerson Electric Co.'s P/BV ratio declined from 2010 to 2011 and from 2011 to 2012.