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:
Below please find a table outlining a discounted cash flow forecast for EMR, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Emerson Electric Co ranked in the 33th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. The most interesting components of our discounted cash flow analysis for Emerson Electric Co ended up being:
Its compound free cash flow growth rate, as measured over the past 5.75 years, is -0.02% -- higher than only 24.71% of stocks in our DCF forecasting set.
As a business, EMR is generating more cash flow than 94.26% of positive cash flow stocks in the Industrials.
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 33.21% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Emerson Electric Co? See CAT, GPN, PCAR, CODA, and ICFI.