Enterprise Value (EV)
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Emerson Electric Co. pages available for free this week:
- Income Statement
- Analysis of Short-term (Operating) Activity Ratios
- Enterprise Value to EBITDA (EV/EBITDA)
- Dividend Discount Model (DDM)
- Net Profit Margin since 2005
- Return on Equity (ROE) since 2005
- Current Ratio since 2005
- Debt to Equity since 2005
- Total Asset Turnover since 2005
- Aggregate Accruals
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Current Enterprise Value (EV)
Emerson Electric Co., current enterprise value calculation
| Current share price (P) | |
| No. shares of common stock outstanding | |
| US$ in millions | |
| Common equity (market value)1 | |
| Add: Noncontrolling interests in subsidiaries (per books) | |
| Total equity | |
| Add: Short-term borrowings and current maturities of long-term debt (per books) | |
| Add: Long-term debt, excluding current maturities (per books) | |
| Total equity and debt | |
| Less: Cash and equivalents | |
| Enterprise value (EV) | |
Based on: 10-K (reporting date: 2019-09-30).
1 Common equity (market value) = Share price × No. shares of common stock outstanding
= ×
Historical Enterprise Value (EV)
Emerson Electric Co., EV calculation
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
= ×
The analysis of the financial data over the six-year period reveals several notable trends in the company’s equity and overall valuation metrics.
- Common Equity (Market Value)
- The market value of common equity displayed a significant decline from 44,497 million US$ in 2014 to a low of 32,734 million US$ in 2015, representing a sharp decrease of approximately 26%. Subsequently, it experienced a steady recovery, increasing each year to reach 44,511 million US$ by 2019, just slightly below the initial 2014 value. This reflects a pattern of initial market correction followed by gradual restoration of market confidence and valuation.
- Total Equity
- Total equity followed a similar trajectory to common equity, decreasing from 44,545 million US$ in 2014 to 32,781 million US$ in 2015. Thereafter, it consistently rose each year, achieving 44,551 million US$ in 2019. The parallel movement between market value of common equity and total equity indicates that book equity also experienced comparable fluctuations during this period, suggesting alignment between market perceptions and accounting measures of equity.
- Total Equity and Debt
- The sum of total equity and debt grew continuously except for the decrease from 50,569 million US$ in 2014 to 39,623 million US$ in 2015, a decline of nearly 22%. From 2015 onward, total capital (equity plus debt) increased steadily, reaching 50,272 million US$ by 2019. The recovery trend possibly reflects improved capital structure management and increased borrowing or equity issuance to support growth initiatives.
- Enterprise Value (EV)
- Enterprise value showed a similar pattern, declining from 47,420 million US$ in 2014 to 36,569 million US$ in 2015. It then showed a gradual increase annually, rising to 48,778 million US$ in 2019. The positive trend after 2015 suggests an improving market valuation of the company’s operational value, correlating with the recovery in equity values.
Overall, the data indicates that the company faced a significant downturn in equity and enterprise valuation during 2015, likely reflecting broader market or firm-specific challenges. Following that period, there was consistent and steady improvement across all key financial metrics through 2019, highlighting a recovery phase with stabilization of both market and book equity, as well as capital structure and enterprise value. The convergence of market and book values toward the end of the period suggests enhanced investor confidence and financial strength.