Common Stock Valuation Ratios (Price Multiples)
Quarterly Data
Valuation ratios measure the quantity of an asset or flaw (e.g., earnings) associated with ownership of a specified claim (e.g., a share of ownership of the enterprise).
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- Income Statement
- Statement of Comprehensive Income
- Common-Size Income Statement
- Analysis of Liquidity Ratios
- Analysis of Short-term (Operating) Activity Ratios
- Analysis of Long-term (Investment) Activity Ratios
- Enterprise Value (EV)
- Present Value of Free Cash Flow to Equity (FCFE)
- Total Asset Turnover since 2005
- Price to Sales (P/S) since 2005
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Historical Valuation Ratios (Summary)
Emerson Electric Co., historical price multiples (quarterly data)
Based on: 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-K (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-K (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31), 10-K (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-Q (reporting date: 2016-12-31), 10-K (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-Q (reporting date: 2015-12-31), 10-K (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-Q (reporting date: 2014-12-31), 10-K (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-Q (reporting date: 2013-12-31).
The analyzed financial ratios reveal significant variability in valuation metrics over the observed periods. The Price to Earnings (P/E) ratio shows a general declining trend from late 2013 into mid-2015, decreasing from above 20 down to around 11.7. This indicates a reduction in the market's valuation relative to earnings during that timeframe. However, from mid-2015 to late 2017, the P/E ratio climbs steadily, reaching highs near 27, suggesting increased investor confidence or expectation of earnings growth. In subsequent periods, the ratio moderates, showing fluctuations but generally trending downward towards 14.86 by early 2020.
The Price to Operating Profit (P/OP) ratio follows a somewhat parallel pattern, starting with a decrease from approximately 12.56 to below 7.5 between late 2013 and early 2015, which implies the stock price was relatively lower compared to operating profit during that phase. Following this, from mid-2015 to late 2017, the P/OP rises progressively, peaking around 17.3, indicating heightened valuations relative to operating profit. Thereafter, the ratio sees a modest decline, settling near 11.25 in early 2020, showing some reversion in valuation levels.
Regarding the Price to Sales (P/S) ratio, the data depicts a notable rise from about 1.6 in early 2014 to nearly 2.8 by the end of 2016. This upward trajectory suggests the market assigned a higher multiple to sales during this period. After peaking, the P/S ratio experiences a moderate decline and fluctuates around values between 2.0 and 2.7 from 2017 to early 2020, indicating some stabilization in sales-based valuation metrics.
The Price to Book Value (P/BV) ratio exhibits relatively moderate fluctuations. Early data points in 2013-2014 range around 4.0 to 4.5, dipping slightly in mid-2015 to about 3.75. Subsequently, there is a gradual increase through late 2017, exceeding 5.5 at times, reflecting growing market valuation relative to book value. In later periods, P/BV ratios demonstrate variability between roughly 4.19 and 5.52, ending near 4.28 in early 2020, indicative of some consolidation around mid-range multiples.
Overall, these valuation ratios collectively suggest a market valuation cycle characterized by decreasing multiples through 2014-2015, likely driven by market or company-specific factors reducing investor valuation. This phase is followed by a period of increased market optimism and higher valuation multiples through 2016-2017. Subsequent periods to early 2020 demonstrate a tempering of valuation enthusiasm with moderate declines and stabilization across the examined ratios. The trends reflect investors’ changing perceptions of growth, profitability, and asset value over time.
Price to Earnings (P/E)
Emerson Electric Co., historical P/E calculation (quarterly data)
| Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||||||||||||||||||||||||||||||
| Selected Financial Data (US$) | ||||||||||||||||||||||||||||||||||
| Net earnings common stockholders (in millions) | ||||||||||||||||||||||||||||||||||
| Earnings per share (EPS)2 | ||||||||||||||||||||||||||||||||||
| Share price1, 3 | ||||||||||||||||||||||||||||||||||
| Valuation Ratio | ||||||||||||||||||||||||||||||||||
| P/E ratio4 | ||||||||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||||||||
| P/E Ratio, Competitors5 | ||||||||||||||||||||||||||||||||||
| Boeing Co. | ||||||||||||||||||||||||||||||||||
| Caterpillar Inc. | ||||||||||||||||||||||||||||||||||
| Eaton Corp. plc | ||||||||||||||||||||||||||||||||||
| GE Aerospace | ||||||||||||||||||||||||||||||||||
| Honeywell International Inc. | ||||||||||||||||||||||||||||||||||
| Lockheed Martin Corp. | ||||||||||||||||||||||||||||||||||
| RTX Corp. | ||||||||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-K (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-K (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31), 10-K (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-Q (reporting date: 2016-12-31), 10-K (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-Q (reporting date: 2015-12-31), 10-K (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-Q (reporting date: 2014-12-31), 10-K (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-Q (reporting date: 2013-12-31).
1 Data adjusted for splits and stock dividends.
2 Q2 2020 Calculation
EPS
= (Net earnings common stockholdersQ2 2020
+ Net earnings common stockholdersQ1 2020
+ Net earnings common stockholdersQ4 2019
+ Net earnings common stockholdersQ3 2019)
÷ No. shares of common stock outstanding
= ( + + + )
÷ =
3 Closing price as at the filing date of Emerson Electric Co. Quarterly or Annual Report.
4 Q2 2020 Calculation
P/E ratio = Share price ÷ EPS
= ÷ =
5 Click competitor name to see calculations.
The data reveals several notable trends in the financial performance and market valuation metrics over the analyzed period.
- Share Price (US$)
- The share price exhibited fluctuations with a general downward trend in the earlier years, declining from $63.76 at the end of 2013 to a low around $46.09 by the end of 2015. Following this period, the share price showed a recovery phase, peaking at $76.01 in early 2020. However, this positive momentum was interrupted by a sharp drop to $53.82 in March 2020. This pattern suggests volatility influenced by market conditions, with a significant decline coinciding with the onset of a broader market downturn in early 2020.
- Earnings Per Share (EPS) (US$)
- EPS data, available from March 2014 onward, shows cyclical fluctuations without a persistent upward or downward trajectory. Initial EPS values increased reaching above $4.00 by late 2014 and early 2015, followed by a notable decline to around $2.27-$2.37 in late 2016 and early 2017. Subsequently, EPS displayed a recovery trend, climbing steadily to a peak of $3.79 in December 2019 before tapering slightly to $3.54 and $3.62 in the first quarter of 2020. The oscillation suggests periods of varying profitability performance but overall stability in earnings during recent years before early 2020.
- Price-to-Earnings (P/E) Ratio
- The P/E ratio shows inverse movements relative to the share price and EPS with distinct volatility. In the earlier quarters, the ratio decreased from 20.73 to 11.7 in late 2015, coinciding with declining share prices and relatively stable EPS. Following that, the P/E ratio rose sharply, exceeding 27.0 in late 2017 and early 2018, indicating increased market valuation per unit of earnings. Subsequently, it declined moderately to around 16.61 at the end of 2019 before rising again to 21.46 by early 2020, then dropping sharply to 14.86 in March 2020. This volatility reflects changing investor sentiment and valuation perspectives, possibly influenced by external economic factors and earnings performance.
In summary, the observed data indicates a company experiencing cyclical earnings with corresponding fluctuations in market valuation. The share price illustrates significant variability, particularly affected by market conditions in early 2020. EPS has shown resilience with a recovery trend in recent years, while the P/E ratio highlights shifts in investor valuation sentiment amid these earnings and price movements.
Price to Operating Profit (P/OP)
Emerson Electric Co., historical P/OP calculation (quarterly data)
| Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||||||||||||||||||||||||||||||
| Selected Financial Data (US$) | ||||||||||||||||||||||||||||||||||
| Earnings from continuing operations before interest and income taxes (in millions) | ||||||||||||||||||||||||||||||||||
| Operating profit per share2 | ||||||||||||||||||||||||||||||||||
| Share price1, 3 | ||||||||||||||||||||||||||||||||||
| Valuation Ratio | ||||||||||||||||||||||||||||||||||
| P/OP ratio4 | ||||||||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||||||||
| P/OP Ratio, Competitors5 | ||||||||||||||||||||||||||||||||||
| Boeing Co. | ||||||||||||||||||||||||||||||||||
| Caterpillar Inc. | ||||||||||||||||||||||||||||||||||
| Eaton Corp. plc | ||||||||||||||||||||||||||||||||||
| GE Aerospace | ||||||||||||||||||||||||||||||||||
| Honeywell International Inc. | ||||||||||||||||||||||||||||||||||
| Lockheed Martin Corp. | ||||||||||||||||||||||||||||||||||
| RTX Corp. | ||||||||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-K (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-K (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31), 10-K (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-Q (reporting date: 2016-12-31), 10-K (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-Q (reporting date: 2015-12-31), 10-K (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-Q (reporting date: 2014-12-31), 10-K (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-Q (reporting date: 2013-12-31).
1 Data adjusted for splits and stock dividends.
2 Q2 2020 Calculation
Operating profit per share
= (Earnings from continuing operations before interest and income taxesQ2 2020
+ Earnings from continuing operations before interest and income taxesQ1 2020
+ Earnings from continuing operations before interest and income taxesQ4 2019
+ Earnings from continuing operations before interest and income taxesQ3 2019)
÷ No. shares of common stock outstanding
= ( + + + )
÷ =
3 Closing price as at the filing date of Emerson Electric Co. Quarterly or Annual Report.
4 Q2 2020 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= ÷ =
5 Click competitor name to see calculations.
The analysis of the financial data over the reviewed periods reveals notable fluctuations and trends in share price, operating profit per share, and the price-to-operating profit ratio (P/OP).
- Share Price
- The share price demonstrated variability throughout the periods observed. Initially, it showed a moderate increase from $63.76 at the end of 2013 to peak around mid-2014, followed by a decline to approximately $46.09 by the end of 2015. Subsequently, the price experienced a recovery phase, peaking near $74.04 in mid-2018. After this peak, the price again declined, finishing at $53.82 by March 31, 2020. This pattern indicates cyclical behavior with periods of growth and contraction within the five-plus years reviewed.
- Operating Profit per Share
- The operating profit per share data, available from late 2014 onwards, shows an initial uptrend from $5.11 to a peak near $6.64 in mid-2015. Thereafter, there was a general downward trend reaching a low point near $3.9 towards late 2016. From this trough, operating profit per share exhibited a gradual and consistent increase, rising to approximately $4.98 at the end of 2019 and maintaining near that level through early 2020. This suggests a recovery and stabilization of operational profitability after a period of decline.
- Price-to-Operating Profit Ratio (P/OP)
- The P/OP ratio displayed an inverse trend relative to operating profit per share. Early in the data set, the ratio decreased significantly from 12.56 to a low around 7.41 by late 2015, coinciding with the rising operating profit per share. Subsequently, the ratio increased steadily, reaching values above 17 in late 2017, reflecting either a rise in share price relative to operating profit or a reduction in profit growth pace. In later periods, the ratio showed a declining pattern, ending at 11.25 by the first quarter of 2020, which aligns with reduced share prices and a relatively stable operating profit per share during that time.
Overall, the company's financial indicators suggest that the mid-2010s were marked by operational challenges and stock price volatility. However, there was a recovery phase characterized by gradual improvement in profitability and share price appreciation until late 2018, followed by renewed pressures reflected in share price reduction and corresponding valuation adjustments in early 2020.
Price to Sales (P/S)
Emerson Electric Co., historical P/S calculation (quarterly data)
| Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||||||||||||||||||||||||||||||
| Selected Financial Data (US$) | ||||||||||||||||||||||||||||||||||
| Net sales (in millions) | ||||||||||||||||||||||||||||||||||
| Sales per share2 | ||||||||||||||||||||||||||||||||||
| Share price1, 3 | ||||||||||||||||||||||||||||||||||
| Valuation Ratio | ||||||||||||||||||||||||||||||||||
| P/S ratio4 | ||||||||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||||||||
| P/S Ratio, Competitors5 | ||||||||||||||||||||||||||||||||||
| Boeing Co. | ||||||||||||||||||||||||||||||||||
| Caterpillar Inc. | ||||||||||||||||||||||||||||||||||
| Eaton Corp. plc | ||||||||||||||||||||||||||||||||||
| GE Aerospace | ||||||||||||||||||||||||||||||||||
| Honeywell International Inc. | ||||||||||||||||||||||||||||||||||
| Lockheed Martin Corp. | ||||||||||||||||||||||||||||||||||
| RTX Corp. | ||||||||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-K (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-K (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31), 10-K (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-Q (reporting date: 2016-12-31), 10-K (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-Q (reporting date: 2015-12-31), 10-K (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-Q (reporting date: 2014-12-31), 10-K (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-Q (reporting date: 2013-12-31).
1 Data adjusted for splits and stock dividends.
2 Q2 2020 Calculation
Sales per share
= (Net salesQ2 2020
+ Net salesQ1 2020
+ Net salesQ4 2019
+ Net salesQ3 2019)
÷ No. shares of common stock outstanding
= ( + + + )
÷ =
3 Closing price as at the filing date of Emerson Electric Co. Quarterly or Annual Report.
4 Q2 2020 Calculation
P/S ratio = Share price ÷ Sales per share
= ÷ =
5 Click competitor name to see calculations.
The share price exhibits notable fluctuations over the observed periods. Initially, it starts at 63.76 US$ at the end of 2013 and reaches several peaks and troughs throughout the timeline. A significant decline is observed around the end of 2015, dropping from a preceding value above 50 US$ to 46.09 US$. Subsequently, it recovers and even surpasses previous highs, peaking near 74.04 US$ in mid-2018. However, this is followed by a downward trend toward early 2020, culminating at 53.82 US$, indicating a period of volatility and general decline toward the end of the dataset.
Sales per share data is available from the end of 2014 onwards. It begins at 35.37 US$ and demonstrates a consistent downward trend until about the end of 2016, where it decreases to a low of around 22.32 US$. After this trough, sales per share gradually increase, reaching approximately 30.07 US$ by early 2020. This pattern suggests an initial decline in sales efficiency or volume on a per-share basis, followed by a recovery phase extending through the later periods.
The price-to-sales (P/S) ratio reflects the relationship between share price and sales per share and shows considerable variability. From its starting point around 1.81 at the end of 2014, the ratio experiences a downward movement until early 2016, touching a low of about 1.41. Following this, the P/S ratio rises markedly, peaking around 2.8 near the end of 2016. Subsequent periods show fluctuations, mostly remaining above 2.0 until about the end of 2019, where it begins to decrease, reaching approximately 1.79 in early 2020. This suggests changes in market valuation relative to sales, with periods of market optimism and premium valuation as well as declines in valuation metrics.
- Share Price Trends:
- Initial moderate fluctuations, a notable dip around late 2015, strong recovery peaking mid-2018, followed by volatility and decline toward early 2020.
- Sales Per Share Trends:
- Consistent decline from late 2014 to late 2016, then gradual recovery through early 2020.
- Price-to-Sales Ratio Trends:
- Decline until early 2016, sharp rise peaking near end of 2016, sustained elevated levels fluctuating mostly above 2.0 until late 2019, then a decline into early 2020.
Overall, the data suggests a period of initial stress or reduced performance in sales efficiency per share, with a recovery phase observed after 2016. Market valuations relative to sales exhibit cyclical fluctuations, possibly reflecting external economic conditions or changes in investor sentiment. The volatility in share price towards the end of the period may correlate with broader market conditions or company-specific developments.
Price to Book Value (P/BV)
Emerson Electric Co., historical P/BV calculation (quarterly data)
| Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||||||||||||||||||||||||||||||
| Selected Financial Data (US$) | ||||||||||||||||||||||||||||||||||
| Common stockholders’ equity (in millions) | ||||||||||||||||||||||||||||||||||
| Book value per share (BVPS)2 | ||||||||||||||||||||||||||||||||||
| Share price1, 3 | ||||||||||||||||||||||||||||||||||
| Valuation Ratio | ||||||||||||||||||||||||||||||||||
| P/BV ratio4 | ||||||||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||||||||
| P/BV Ratio, Competitors5 | ||||||||||||||||||||||||||||||||||
| Boeing Co. | ||||||||||||||||||||||||||||||||||
| Caterpillar Inc. | ||||||||||||||||||||||||||||||||||
| Eaton Corp. plc | ||||||||||||||||||||||||||||||||||
| GE Aerospace | ||||||||||||||||||||||||||||||||||
| Honeywell International Inc. | ||||||||||||||||||||||||||||||||||
| Lockheed Martin Corp. | ||||||||||||||||||||||||||||||||||
| RTX Corp. | ||||||||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-K (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-K (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31), 10-K (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-Q (reporting date: 2016-12-31), 10-K (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-Q (reporting date: 2015-12-31), 10-K (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-Q (reporting date: 2014-12-31), 10-K (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-Q (reporting date: 2013-12-31).
1 Data adjusted for splits and stock dividends.
2 Q2 2020 Calculation
BVPS = Common stockholders’ equity ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Emerson Electric Co. Quarterly or Annual Report.
4 Q2 2020 Calculation
P/BV ratio = Share price ÷ BVPS
= ÷ =
5 Click competitor name to see calculations.
The analysis of the quarterly data over the period from December 2013 to March 2020 reveals several key trends in the share price, book value per share (BVPS), and the price-to-book value (P/BV) ratio.
- Share Price
- The share price exhibited considerable volatility throughout the observed period. Starting at $63.76 at the end of 2013, it experienced fluctuations with notable decreases including a decline to $46.09 by December 2015. Subsequently, the price recovered gradually, reaching a peak near $74.04 in mid-2018 before declining again toward the end of the period, with a significant drop to $53.82 by March 2020. This pattern suggests sensitivity to market conditions or company-specific events affecting investor confidence.
- Book Value per Share (BVPS)
- BVPS showed a generally declining trend from $15.28 at the end of 2013 to around $12.58–$13.76 in early 2020, with some minor fluctuations. This gradual decrease over time indicates a reduction in net asset value on a per-share basis. There were small rebounds observed in some quarters, but the overall trend was downward, possibly reflecting asset write-downs, retained earnings variations, or other balance sheet changes.
- Price-to-Book Value (P/BV) Ratio
- The P/BV ratio demonstrates an inverse relationship to some extent compared to BVPS, as is typical. It fluctuated within a range mostly between 3.75 and 5.53. After dropping to lows around 3.75–3.98 in mid to late 2015, the ratio climbed to peak levels exceeding 5.5 during 2018 and again approached or exceeded 5.4 by late 2019. This pattern suggests that the market price often traded at a significant premium to book value, indicating either investor optimism or expectations of future growth that are not directly reflected in the book value.
In summary, the share price demonstrated marked volatility influenced by external and/or internal factors, while the BVPS showed a mild but consistent decline, suggesting a gradual erosion in net book value. The P/BV ratio remained elevated for much of the period, reflecting confidence in earnings potential or intangible asset values beyond the book figures. The sharp decline in share price by March 2020, despite a relatively stable BVPS, points to a potential market reassessment of value rather than a fundamental deterioration in the company's net assets.