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 29th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. 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 5.5 years, is -0.02% -- higher than merely 22.62% of stocks in our DCF forecasting set.
The company has produced more trailing twelve month cash flow than 93.68% of its sector 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 27.25% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
CMI, GTES, WNC, NDSN, and VSEC can be thought of as valuation peers to EMR, in the sense that they are in the Industrials sector and have a similar price forecast based on DCF valuation.
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