Price to Book Value (P/BV)
since 2005
Calculation
Emerson Electric Co., P/BV, long-term trends, calculation
| P/BV | = | Share price1, 2, 3 | ÷ | Book value per share1 (BVPS) | BVPS1 | = | Common stockholders’ equity1 (in millions) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Nov 18, 2019 | 5.41 | = | 73.07 | ÷ | 13.52 | 13.52 | = | 8,233 | ÷ | 609,153,835 | |
| Nov 19, 2018 | 4.79 | = | 68.46 | ÷ | 14.29 | 14.29 | = | 8,947 | ÷ | 626,158,598 | |
| Nov 20, 2017 | 4.44 | = | 60.26 | ÷ | 13.58 | 13.58 | = | 8,718 | ÷ | 641,819,838 | |
| Nov 16, 2016 | 4.67 | = | 54.97 | ÷ | 11.77 | 11.77 | = | 7,568 | ÷ | 642,776,971 | |
| Nov 18, 2015 | 4.05 | = | 50.01 | ÷ | 12.35 | 12.35 | = | 8,081 | ÷ | 654,557,141 | |
| Nov 19, 2014 | 4.40 | = | 64.15 | ÷ | 14.59 | 14.59 | = | 10,119 | ÷ | 693,634,810 | |
| Nov 19, 2013 | 4.48 | = | 67.36 | ÷ | 15.04 | 15.04 | = | 10,585 | ÷ | 703,964,498 | |
| Nov 20, 2012 | 3.41 | = | 48.49 | ÷ | 14.22 | 14.22 | = | 10,295 | ÷ | 724,139,345 | |
| Nov 22, 2011 | 3.42 | = | 48.31 | ÷ | 14.13 | 14.13 | = | 10,399 | ÷ | 735,749,636 | |
| Nov 23, 2010 | 4.24 | = | 55.10 | ÷ | 13.01 | 13.01 | = | 9,792 | ÷ | 752,657,107 | |
| Nov 23, 2009 | 3.72 | = | 42.30 | ÷ | 11.37 | 11.37 | = | 8,555 | ÷ | 752,147,714 | |
| Nov 25, 2008 | 2.90 | = | 34.51 | ÷ | 11.88 | 11.88 | = | 9,113 | ÷ | 767,063,304 | |
| Nov 19, 2007 | 4.82 | = | 53.76 | ÷ | 11.14 | 11.14 | = | 8,772 | ÷ | 787,228,656 | |
| Nov 21, 2006 | 4.37 | = | 44.41 | ÷ | 10.16 | 10.16 | = | 8,154 | ÷ | 802,368,780 | |
| Nov 22, 2005 | 4.06 | = | 36.61 | ÷ | 9.01 | 9.01 | = | 7,400 | ÷ | 821,630,628 |
Based on: 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30), 10-K (reporting date: 2015-09-30), 10-K (reporting date: 2014-09-30), 10-K (reporting date: 2013-09-30), 10-K (reporting date: 2012-09-30), 10-K (reporting date: 2011-09-30), 10-K (reporting date: 2010-09-30), 10-K (reporting date: 2009-09-30), 10-K (reporting date: 2008-09-30), 10-K (reporting date: 2007-09-30), 10-K (reporting date: 2006-09-30), 10-K (reporting date: 2005-09-30).
1 US$
2 Data adjusted for splits and stock dividends.
3 Closing price as at the filing date of Emerson Electric Co. Annual Report.
The Price to Book Value (P/BV) ratio exhibits a general long-term upward trajectory, characterized by a significant contraction during the 2008 financial period followed by a sustained expansion in market valuation relative to book value through 2019.
- Valuation Volatility and Market Correction
- A peak P/BV ratio of 4.82 was observed in 2007, which was followed by a sharp decline to a period low of 2.90 in 2008. This contraction was primarily driven by a significant reduction in the share price from 53.76 US$ to 34.51 US$. A recovery phase followed, with the ratio returning to 4.24 by 2010, though it remained suppressed between 3.41 and 3.42 during 2011 and 2012.
- Book Value per Share (BVPS) Progression
- The book value per share showed a consistent growth trend from 2005 (9.01 US$) through 2013, reaching a peak of 15.04 US$. A period of instability followed between 2014 and 2016, where BVPS dropped to 11.77 US$, before recovering to a secondary peak of 14.29 US$ in 2018. The final recorded value in 2019 showed a slight contraction to 13.52 US$.
- Expansion of the Valuation Multiple
- From 2015 to 2019, there is a clear trend of valuation expansion. The P/BV ratio rose from 4.05 to a period high of 5.41. The increase in the 2019 ratio is particularly notable as it occurred despite a decrease in the underlying book value per share, indicating that the higher multiple was driven by strong share price appreciation to 73.07 US$.
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Comparison to Competitors
Emerson Electric Co., P/BV, long-term trends, comparison to competitors
| Emerson Electric Co. | Boeing Co. | Caterpillar Inc. | Eaton Corp. plc | GE Aerospace | Honeywell International Inc. | Lockheed Martin Corp. | RTX Corp. | |
|---|---|---|---|---|---|---|---|---|
| Nov 18, 2019 | 5.41 | — | 5.16 | 2.48 | 3.66 | 6.97 | 39.60 | 3.24 |
| Nov 19, 2018 | 4.79 | 674.83 | 5.44 | 2.12 | 3.00 | 5.96 | 61.11 | 2.71 |
| Nov 20, 2017 | 4.44 | 569.92 | 6.98 | 2.06 | 1.96 | 6.44 | — | 3.38 |
| Nov 16, 2016 | 4.67 | 122.80 | 4.42 | 2.19 | 3.47 | 4.79 | 49.61 | 3.22 |
| Nov 18, 2015 | 4.05 | 12.17 | 2.56 | 1.72 | 2.79 | 4.35 | 21.37 | 2.59 |
| Nov 19, 2014 | 4.40 | 12.04 | 3.09 | 2.13 | 2.04 | 4.63 | 17.92 | 3.49 |
| Nov 19, 2013 | 4.48 | 6.50 | 2.96 | 2.15 | 1.96 | 4.25 | 10.65 | 3.14 |
| Nov 20, 2012 | 3.41 | 9.78 | 3.57 | 1.94 | 1.95 | 4.24 | 727.88 | 3.18 |
| Nov 22, 2011 | 3.42 | 16.10 | 5.78 | 2.32 | 1.75 | 4.31 | 28.67 | 3.48 |
| Nov 23, 2010 | 4.24 | 19.33 | 6.02 | 2.47 | 1.86 | 4.26 | 7.56 | 3.65 |
| Nov 23, 2009 | 3.72 | 20.59 | 4.16 | 1.67 | 1.47 | 3.27 | 7.00 | 3.12 |
| Nov 25, 2008 | 2.90 | — | 2.63 | 0.95 | 1.10 | 3.38 | 9.51 | 2.82 |
| Nov 19, 2007 | 4.82 | 7.24 | 5.00 | 2.28 | 2.97 | 4.52 | 4.38 | 3.28 |
| Nov 21, 2006 | 4.37 | 15.15 | 6.33 | 2.88 | 3.17 | 3.94 | 6.23 | 3.92 |
| Nov 22, 2005 | 4.06 | 5.26 | 5.81 | 2.73 | 3.15 | 3.05 | 4.05 | 3.39 |
Based on: 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30), 10-K (reporting date: 2015-09-30), 10-K (reporting date: 2014-09-30), 10-K (reporting date: 2013-09-30), 10-K (reporting date: 2012-09-30), 10-K (reporting date: 2011-09-30), 10-K (reporting date: 2010-09-30), 10-K (reporting date: 2009-09-30), 10-K (reporting date: 2008-09-30), 10-K (reporting date: 2007-09-30), 10-K (reporting date: 2006-09-30), 10-K (reporting date: 2005-09-30).
Comparison to Sector (Capital Goods)
Emerson Electric Co., P/BV, long-term trends, comparison to sector (capital goods)
| Emerson Electric Co. | Capital Goods | |
|---|---|---|
| Nov 18, 2019 | 5.41 | 6.91 |
| Nov 19, 2018 | 4.79 | 6.11 |
| Nov 20, 2017 | 4.44 | 5.42 |
| Nov 16, 2016 | 4.67 | 4.64 |
| Nov 18, 2015 | 4.05 | 3.45 |
| Nov 19, 2014 | 4.40 | 3.17 |
| Nov 19, 2013 | 4.48 | 2.85 |
| Nov 20, 2012 | 3.41 | 2.77 |
| Nov 22, 2011 | 3.42 | 2.89 |
| Nov 23, 2010 | 4.24 | 2.90 |
| Nov 23, 2009 | 3.72 | 2.29 |
| Nov 25, 2008 | 2.90 | 1.86 |
| Nov 19, 2007 | 4.82 | 3.46 |
| Nov 21, 2006 | 4.37 | 3.91 |
| Nov 22, 2005 | 4.06 | 3.47 |
Based on: 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30), 10-K (reporting date: 2015-09-30), 10-K (reporting date: 2014-09-30), 10-K (reporting date: 2013-09-30), 10-K (reporting date: 2012-09-30), 10-K (reporting date: 2011-09-30), 10-K (reporting date: 2010-09-30), 10-K (reporting date: 2009-09-30), 10-K (reporting date: 2008-09-30), 10-K (reporting date: 2007-09-30), 10-K (reporting date: 2006-09-30), 10-K (reporting date: 2005-09-30).
Comparison to Industry (Industrials)
Emerson Electric Co., P/BV, long-term trends, comparison to industry (industrials)
| Emerson Electric Co. | Industrials | |
|---|---|---|
| Nov 18, 2019 | 5.41 | 6.28 |
| Nov 19, 2018 | 4.79 | 5.96 |
| Nov 20, 2017 | 4.44 | 5.37 |
| Nov 16, 2016 | 4.67 | 4.89 |
| Nov 18, 2015 | 4.05 | 3.68 |
| Nov 19, 2014 | 4.40 | 3.70 |
| Nov 19, 2013 | 4.48 | 3.14 |
| Nov 20, 2012 | 3.41 | 3.06 |
| Nov 22, 2011 | 3.42 | 3.09 |
| Nov 23, 2010 | 4.24 | 3.05 |
| Nov 23, 2009 | 3.72 | 2.43 |
| Nov 25, 2008 | 2.90 | 2.01 |
| Nov 19, 2007 | 4.82 | 3.45 |
| Nov 21, 2006 | 4.37 | 3.75 |
| Nov 22, 2005 | 4.06 | 3.95 |
Based on: 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30), 10-K (reporting date: 2015-09-30), 10-K (reporting date: 2014-09-30), 10-K (reporting date: 2013-09-30), 10-K (reporting date: 2012-09-30), 10-K (reporting date: 2011-09-30), 10-K (reporting date: 2010-09-30), 10-K (reporting date: 2009-09-30), 10-K (reporting date: 2008-09-30), 10-K (reporting date: 2007-09-30), 10-K (reporting date: 2006-09-30), 10-K (reporting date: 2005-09-30).