NYSE: EMR · Industrial Machinery
Emerson Electric (EMR) fair value: undervalued or overvalued?
As of 3 Oct 2026, Faircurve's model values Emerson Electric (EMR) at $167.42 a share. The stock last closed at $161.61, which puts the model's fair value 3.6% above the price. On the model's bands that reads as Fairly valued.
Revalued . Price is the close of 2 Oct 2026. Emerson Electric Co.
Faircurve Insights · 3 Oct 2026
Emerson Electric Co. is an international technology and engineering firm that delivers diverse solutions to industrial, commercial, and residential clients across the Americas, Asia, the Middle East, Africa, and Europe.
Faircurve's model found a fair value of $167.42 a share on 3 Oct 2026, the midpoint of 2,000 simulations. The previous run on 26 Sep 2026 gave $166.37, so the fair value moved +0.6%. The model's calibrated range over 63 trading days is $148.40 to $186.13, and ranges built this way held the price 60% of the time at this horizon. The evidence grade is High.
The overall quality score is 39 out of 100 against comparable companies. The model compares it with Trane Technologies plc (TT), Illinois Tool Works Inc. (ITW), Cummins Inc. (CMI), Parker-Hannifin Corporation (PH), PACCAR Inc (PCAR), Rockwell Automation, Inc. (ROK), and Carrier Global Corporation (CARR). The stock moved +4.9% around its earnings report on 4 Aug 2026, +9.2% on 5 May 2026, and +5.8% on 3 Feb 2026.
Written from the figures on this page for the 3 Oct 2026 valuation and checked by rule before publishing: every number is one printed here, no forecast, no instruction. The price, the gap and the verdict are the page's own and change daily. Not a recommendation.
What price range does the model give EMR?
The calibrated range for EMR over 63 trading days is $148.40 to $186.13. It sits around the last close, and its width comes from the volatility that EMR's own options imply (32% a year), calibrated weekly against realised prices (n = 3,562 past valuations, refreshed 3 Oct 2026). Ranges built this way held the price 60% of the time at this horizon. The fair value is the model's opinion and rides beside the range. It is not the centre of it.
The model's own simulated range, from the 20th to the 80th percentile of its runs, is $132.48 to $208.04. In 55% of the simulations the fair value came out above the price the model ran on.
How does EMR score on business quality?
Emerson Electric's overall quality score is 39 out of 100. Each factor below is a score against comparable companies, not a percentile of the metric beside it.
| Factor | Score (0 to 100) | Headline measure | Peer median |
|---|---|---|---|
| ProfitabilityReturn on invested capital against the peer group, with a bonus for an improving trend. | 0 | 9.2%ROIC | 22.4% |
| Earnings qualityHow much of reported profit is cash: free cash flow to net income, and the accrual ratio (the share of earnings that is not cash). | 83 | 1.34xFCF / net income | 0.88x |
| Growth qualityTrailing revenue growth, forward growth from consensus, and the direction of analyst estimate revisions. | 48 | 3.0%Revenue growth, trailing | 4.7% |
| Capital disciplineReinvestment efficiency (capital spending per unit of revenue) and net buybacks. | 50 | 1.1%Net buybacks / market value | 2.2% |
| Balance sheetNet debt to EBITDA and interest coverage. | 41 | 2.26xNet debt / EBITDA | 1.76x |
| StabilityDownside volatility of the EBITDA margin over the last five years. | 33 | 1.9 ptsEBITDA margin downside volatility, 5y | 1.0 pts |
How does EMR compare with similar companies?
The companies in industrial machinery closest to Emerson Electric in market value, each on the same model and the same date.
| Company | Last close | Model fair value | Gap | Model verdict |
|---|---|---|---|---|
| TT Trane Technologies plc | $463.91 | $455.07 | -1.9% | Fairly valued |
| ITW Illinois Tool Works Inc. | $262.92 | $286.79 | +9.1% | Fairly valued |
| CMI Cummins Inc. | $528.32 | $614.42 | +16.3% | Undervalued |
| PH Parker-Hannifin Corporation | $972.55 | $857.79 | -11.8% | Fairly valued |
| PCAR PACCAR Inc | $109.68 | $114.63 | +4.5% | Fairly valued |
| ROK Rockwell Automation, Inc. | $454.35 | $418.42 | -7.9% | Fairly valued |
| CARR Carrier Global Corporation | $55.12 | $57.16 | +3.7% | Fairly valued |
| GEV GE Vernova Inc. | $988.70 | $998.65 | +1.0% | Low evidence grade |
When does EMR report earnings, and how has the stock reacted?
Emerson Electric's next earnings report is scheduled for 4 Nov 2026. Companies can move their dates.
Options prices on 2 Oct 2026 imply a move of about 4.5% in either direction through the nearest expiry, about 13 days out. That is the size the market is pricing, not a direction. EMR's 30 day implied volatility works out to about 9.3% over one month.
How EMR moved around its last 8 earnings reports
Each move runs from the last close before the report to the first close after it, so it covers companies that report before the open and after the close. The median size across these 8 reports, ignoring direction, was 5.2%.
| Report date | Two session move |
|---|---|
| 4 Aug 2026 | +4.9% |
| 5 May 2026 | +9.2% |
| 3 Feb 2026 | +5.8% |
| 5 Nov 2025 | -4.5% |
| 6 Aug 2025 | -5.5% |
| 7 May 2025 | +4.8% |
| 5 Feb 2025 | -0.2% |
| 5 Nov 2024 | +15.5% |
Emerson Electric at a glance
Emerson Electric Co. is an international technology and engineering firm that delivers diverse solutions to industrial, commercial, and residential clients across the Americas, Asia, the Middle East, Africa, and Europe.
- Market value
- $90.5B
- Sector
- Industrials
- Industry
- Industrial Machinery
- Revenue expected, next twelve months
- $19.9B
- Consensus revenue growth, next fiscal year
- +4.8%
- Analysts with estimates
- 16
- Beta to the US market
- 1.48
- First valued by Faircurve
- 1 May 2026
How the fair value is worked out: the model prices Emerson Electric on the value of the whole business, debt included, against the operating profit analysts expect next year (forward EV/EBITDA), runs 2,000 simulations across its inputs and takes the midpoint. The full method is documented here.
What changed in the latest valuation?
On 26 Sep 2026 the model's fair value for EMR was $166.37. As of 3 Oct 2026 it is $167.42, a change of +0.6%. The model revalues every stock it covers each week, and again after an earnings report.
Questions about Emerson Electric's valuation
Is Emerson Electric stock undervalued or overvalued?
On Faircurve's model, EMR reads as Fairly valued as of 3 Oct 2026. The model's fair value is $167.42 a share against a last close of $161.61, a gap of +3.6%.
What is EMR's fair value?
$167.42 a share as of 3 Oct 2026, the midpoint of 2,000 simulations. The model's own 20th to 80th percentile range is $132.48 to $208.04.
What price range does the model give EMR?
$148.40 to $186.13 over 63 trading days. Ranges built this way held the price 60% of the time across 3,562 past valuations, refreshed 3 Oct 2026.
When does Emerson Electric report earnings next?
The next report is scheduled for 4 Nov 2026. Companies can move their dates.
How much has EMR moved on past earnings reports?
Across its last 8 reports the median two session move was 5.2%, ignoring direction. The largest was +15.5% around the report of 5 Nov 2024.
How confident is the model in this valuation?
The model's evidence grade for EMR is high. The grade looks at how complete the inputs are, how many comparable companies there are and how closely they agree, and how wide the range of outcomes is. It is not a probability that the fair value is right, or that the price reaches it.