Name: Emerson Electric Co. (NYSE:EMR) | Enterprise Value (EV)
Creator: Stock Analysis on Net

Current EV
Historical EV

Emerson Electric Co., current enterprise value calculation

Current share price (P)	$53.82
No. shares of common stock outstanding	597,475,300
US$ in millions
Common equity (market value)¹	32,156)
Add: Noncontrolling interests in subsidiaries (per books)	40)
Total equity	32,196)
Add: Short-term borrowings and current maturities of long-term debt (per books)	1,444)
Add: Long-term debt, excluding current maturities (per books)	4,277)
Total equity and debt	37,917)
Less: Cash and equivalents	1,494)
Enterprise value (EV)	36,423)

Based on: 10-K (reporting date: 2019-09-30).

¹ Common equity (market value) = Share price × No. shares of common stock outstanding
= 53.82 × 597,475,300

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Emerson Electric Co., EV calculation

	Sep 30, 2019	Sep 30, 2018	Sep 30, 2017	Sep 30, 2016	Sep 30, 2015	Sep 30, 2014
Share price^1, 2	$73.07	$68.46	$60.26	$54.97	$50.01	$64.15
No. shares of common stock outstanding¹	609,153,835	626,158,598	641,819,838	642,776,971	654,557,141	693,634,810
US$ in millions
Common equity (market value)³	44,511)	42,867)	38,676)	35,333)	32,734)	44,497)
Add: Noncontrolling interests in subsidiaries (book value)	40)	43)	52)	50)	47)	48)
Total equity	44,551)	42,910)	38,728)	35,383)	32,781)	44,545)
Add: Short-term borrowings and current maturities of long-term debt (book value)	1,444)	1,623)	862)	2,584)	2,553)	2,465)
Add: Long-term debt, excluding current maturities (book value)	4,277)	3,137)	3,794)	4,062)	4,289)	3,559)
Total equity and debt	50,272)	47,670)	43,384)	42,029)	39,623)	50,569)
Less: Cash and equivalents	1,494)	1,093)	3,062)	3,182)	3,054)	3,149)
Enterprise value (EV)	48,778)	46,577)	40,322)	38,847)	36,569)	47,420)

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).

¹ Data adjusted for splits and stock dividends.

² Closing price as at the filing date of Emerson Electric Co. Annual Report.

³ 2019 Calculation
Common equity (market value) = Share price × No. shares of common stock outstanding
= 73.07 × 609,153,835

Between September 30, 2014, and September 30, 2019, the financial metrics exhibited a distinct V-shaped trajectory, characterized by a significant contraction in 2015 followed by a sustained recovery over the subsequent four fiscal years.

Enterprise Value (EV) Trends: Enterprise value experienced a sharp decline of approximately 22.9% between 2014 and 2015, falling from US$ 47,420 million to US$ 36,569 million. Following this trough, a consistent annual increase was observed, with the value rising to US$ 48,778 million by 2019, thereby surpassing the 2014 baseline.
Equity Valuation Patterns: The market value of common equity mirrored the movements of the enterprise value closely. After falling from US$ 44,497 million in 2014 to US$ 32,734 million in 2015, market equity grew steadily each year to reach US$ 44,511 million by 2019. The near-identical movement between the market value of common equity and total equity suggests a stable relationship between market pricing and book value throughout the period.
Capital Structure and Total Value: The combined value of equity and debt followed the general trend of the other metrics, decreasing from US$ 50,569 million in 2014 to US$ 39,623 million in 2015 before recovering to US$ 50,272 million by 2019. The close correlation between the total equity and debt figure and the enterprise value indicates that the components of the capital structure shifted in tandem with the overall valuation of the firm.

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Emerson Electric Co. (NYSE:EMR)

Enterprise Value (EV)

Current Enterprise Value (EV)

Historical Enterprise Value (EV)