Emerson Electric provides technology and engineering solutions to industrial, commercial, and consumer markets worldwide. It operates through five segments: Process Management, Industrial Automation, Network Power, Climate Technologies, and Commercial & Residential Solutions. The company was founded in 1890 and is based in St. Louis, Missouri.
EMR Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Emerson Electric Co. To summarize, we found that Emerson Electric Co ranked in the 33th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. As for the metrics that stood out in our discounted cash flow analysis of Emerson Electric Co, consider:
In the past 5.5 years, Emerson Electric Co has a compound free cash flow growth rate of -0.02%; that's higher than merely 23.86% of free cash flow generating stocks in the Industrials sector.
EMR's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 34.81% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Industrials that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as EMR, try CAT, FLS, GWW, CODA, and CODI.