Emerson Electric Co. logo EMR - Emerson Electric Co.

Price: -- -- | CONSENSUS: Buy DETAILS
STRONG
BUY
0
BUY 23
HOLD 17
SELL 3
STRONG
SELL
0
| PRICE TARGET: $165.90 DETAILS
HIGH: $186.00
LOW: $135.00
MEDIAN: $170.50
CONSENSUS: $165.90
UPSIDE: 4.30%
AlphaVal

AlphaVal

Deterministic, archetype-aware fair value

Stable Earnings Power 65% confidence

Primary model: P/Adj-EPS × Normalized Multiple

Valuation Signal Overvalued Strong
Trading 162.5% above fair value
Current Price $159.06
Bear Case $48.48 69.5% downside ($48.48 - $159.06) / $159.06 = -69.5% $4.04 × 12x P/E
Fair Value $60.60 61.9% downside ($60.60 - $159.06) / $159.06 = -61.9% $4.04 × 15x P/E
Bull Case $72.72 54.3% downside ($72.72 - $159.06) / $159.06 = -54.3% $4.04 × 18x P/E

Adjust Assumptions

15.0x
4.04$

Key Value Driver

Normalized P/E multiple (15x base case)

Implied Market Multiple 39.4x

Plain-Language Summary

Applying a 15x P/E to adjusted EPS of $4.04, the base-case value is $60.60 per share. DDM cross-check: $34.71.

Analyst Consensus (External Reference)

Never blended into the bear/base/bull estimates above -- shown only as an outside comparison.

Average Target (43 analysts) $165.90
Analyst Range $135.00 – $186.00
Divergence from AlphaVal 63%

Warnings

ℹ Dividend-based valuation: $34.71 (below our primary estimate by 43%). Large gaps may signal the dividend doesn't reflect full earning power.
ℹ Wall Street's average price target is $165.90 (from 43 analysts). Our estimate is 63% below the consensus -- consider that gap carefully.

Key Risks

  • Growth DCF inappropriate — terminal value assumptions dominate
  • EV/EBITDA misleading for regulated businesses where capex is mandated
  • Regulatory risk is a fat tail not visible in normal multiples