Stock Analysis on Net
Stock Analysis on Net

Emerson Electric Co. (NYSE:EMR)

This company has been moved to the archive! The financial data has not been updated since April 24, 2020.

Price to Earnings (P/E)
since 2005

Microsoft Excel

Calculation

Emerson Electric Co., P/E, long-term trends, calculation

Microsoft Excel
P/E = Share price1, 2, 3 ÷ Earnings per share1 (EPS) EPS1 = Net earnings common stockholders1
(in millions)		 ÷ No. shares of common stock outstanding2
Nov 18, 2019 19.30 = 73.07 ÷ 3.79 3.79 = 2,306 ÷ 609,153,835
Nov 19, 2018 19.46 = 68.46 ÷ 3.52 3.52 = 2,203 ÷ 626,158,598
Nov 20, 2017 25.48 = 60.26 ÷ 2.37 2.37 = 1,518 ÷ 641,819,838
Nov 16, 2016 21.61 = 54.97 ÷ 2.54 2.54 = 1,635 ÷ 642,776,971
Nov 18, 2015 12.08 = 50.01 ÷ 4.14 4.14 = 2,710 ÷ 654,557,141
Nov 19, 2014 20.73 = 64.15 ÷ 3.10 3.10 = 2,147 ÷ 693,634,810
Nov 19, 2013 23.66 = 67.36 ÷ 2.85 2.85 = 2,004 ÷ 703,964,498
Nov 20, 2012 17.84 = 48.49 ÷ 2.72 2.72 = 1,968 ÷ 724,139,345
Nov 22, 2011 14.33 = 48.31 ÷ 3.37 3.37 = 2,480 ÷ 735,749,636
Nov 23, 2010 19.16 = 55.10 ÷ 2.88 2.88 = 2,164 ÷ 752,657,107
Nov 23, 2009 18.45 = 42.30 ÷ 2.29 2.29 = 1,724 ÷ 752,147,714
Nov 25, 2008 10.97 = 34.51 ÷ 3.14 3.14 = 2,412 ÷ 767,063,304
Nov 19, 2007 19.81 = 53.76 ÷ 2.71 2.71 = 2,136 ÷ 787,228,656
Nov 21, 2006 19.31 = 44.41 ÷ 2.30 2.30 = 1,845 ÷ 802,368,780
Nov 22, 2005 21.15 = 36.61 ÷ 1.73 1.73 = 1,422 ÷ 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 valuation of Emerson Electric Co. from 2005 to 2019 is characterized by cyclical fluctuations in the price-to-earnings (P/E) ratio, reflecting shifts in market sentiment and the relationship between share price and earnings performance.

P/E Ratio Range and Volatility
The P/E ratio exhibited significant volatility, reaching a minimum of 10.97 in 2008 and a maximum of 25.48 in 2017. Despite these extremes, the ratio frequently reverted to a mean range between 19.00 and 21.00, as seen in 2005, 2006, 2007, 2014, 2018, and 2019.
Analysis of Valuation Contractions
Two notable contractions in valuation occurred. In 2008, the P/E ratio dropped sharply to 10.97, coinciding with a decrease in share price from 53.76 in 2007 to 34.51. A second contraction occurred in 2015, where the P/E ratio fell to 12.08. This 2015 decline is particularly distinct because it occurred during a period of peak earnings per share (EPS) of 4.14, indicating that the market significantly discounted the value of earnings during that fiscal year.
Valuation Expansion and Peak
A period of rapid valuation expansion followed the 2015 low, with the P/E ratio increasing to 21.61 in 2016 and peaking at 25.48 in 2017. This peak was achieved despite a concurrent decline in EPS to 2.37, suggesting that the share price increase to 60.26 was driven by investor expectations or external market factors rather than immediate earnings growth.
Correlation Between Share Price and EPS
The relationship between share price and EPS remained inconsistent over the 14-year period. While EPS grew from 1.73 in 2005 to 3.79 in 2019, the share price did not move in a linear correlation with these earnings. For instance, the highest share price of 73.07 in 2019 was supported by a P/E ratio of 19.30, which is lower than the valuation peak seen in 2017.

By the conclusion of the analyzed period in 2019, the P/E ratio had stabilized at 19.30, aligning with the historical valuation levels observed at the beginning of the sequence.

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Comparison to Competitors

Emerson Electric Co., P/E, long-term trends, comparison to competitors

Microsoft Excel
Emerson Electric Co. Boeing Co. Caterpillar Inc. Eaton Corp. plc GE Aerospace Honeywell International Inc. Lockheed Martin Corp. RTX Corp.
Nov 18, 2019 19.30 — 12.36 18.06 — 20.97 19.87 24.41
Nov 19, 2018 19.46 21.87 12.42 15.92 — 16.02 16.88 19.74
Nov 20, 2017 25.48 24.68 126.80 11.90 — 67.20 48.70 21.97
Nov 16, 2016 21.61 20.50 — 16.96 32.22 19.29 14.14 17.55
Nov 18, 2015 12.08 14.89 18.07 13.17 — 16.70 18.36 9.31
Nov 19, 2014 20.73 19.15 14.01 18.73 17.17 19.27 16.86 17.52
Nov 19, 2013 23.66 21.10 16.25 19.35 19.59 18.91 17.56 17.51
Nov 20, 2012 17.84 14.71 11.02 23.99 17.57 18.78 10.34 16.07
Nov 22, 2011 14.33 14.09 15.11 12.83 15.52 22.54 10.81 15.29
Nov 23, 2010 19.16 16.17 24.14 19.59 19.49 22.48 9.58 17.84
Nov 23, 2009 18.45 33.40 40.66 29.60 16.09 13.44 9.56 16.33
Nov 25, 2008 10.97 11.63 4.51 5.65 6.62 8.71 8.47 9.57
Nov 19, 2007 19.81 15.99 12.54 11.89 15.45 17.07 14.15 16.61
Nov 21, 2006 19.31 32.40 12.28 12.47 17.11 18.37 16.95 18.16
Nov 22, 2005 21.15 22.62 17.17 12.82 21.07 20.71 17.45 18.76

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/E, long-term trends, comparison to sector (capital goods)

Microsoft Excel
Emerson Electric Co. Capital Goods
Nov 18, 2019 19.30 39.03
Nov 19, 2018 19.46 56.00
Nov 20, 2017 25.48 55.16
Nov 16, 2016 21.61 23.62
Nov 18, 2015 12.08 33.10
Nov 19, 2014 20.73 17.47
Nov 19, 2013 23.66 18.85
Nov 20, 2012 17.84 15.74
Nov 22, 2011 14.33 15.20
Nov 23, 2010 19.16 18.46
Nov 23, 2009 18.45 17.22
Nov 25, 2008 10.97 7.48
Nov 19, 2007 19.81 15.28
Nov 21, 2006 19.31 17.63
Nov 22, 2005 21.15 20.11

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/E, long-term trends, comparison to industry (industrials)

Microsoft Excel
Emerson Electric Co. Industrials
Nov 18, 2019 19.30 43.95
Nov 19, 2018 19.46 33.70
Nov 20, 2017 25.48 29.83
Nov 16, 2016 21.61 22.92
Nov 18, 2015 12.08 22.89
Nov 19, 2014 20.73 18.79
Nov 19, 2013 23.66 19.13
Nov 20, 2012 17.84 17.77
Nov 22, 2011 14.33 15.75
Nov 23, 2010 19.16 18.72
Nov 23, 2009 18.45 19.17
Nov 25, 2008 10.97 9.73
Nov 19, 2007 19.81 16.93
Nov 21, 2006 19.31 11.65
Nov 22, 2005 21.15 50.62

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).