Emerson Electric Co EV/EBITDA
Data as of August 04, 2026
EV/EBITDA
21.98
Enterprise Value
$95.48B
EBITDA (TTM)
$4.34B
Sector
Electrical Equipment
How It's Calculated
21.98 = $95.48B ÷ $4.34B
What This Means
Emerson Electric Co's EV/EBITDA of 22.0 is elevated, which can reflect growth expectations, scarce assets, or cyclical EBITDA.
About Emerson Electric Co
Emerson Electric Co (EMR) operates in the Electrical Equipment sector, specifically in Electrical Equipment. With a market capitalization of about $83.91B, it ranks as a large-cap stock — a major established company.
Shares recently traded near $154.85, within a 52-week range of $122.64 to $165.15 (-6.2% from the high, +26.3% from the low). Beta of 1.24 suggests the stock has been more volatile than the broader market.
Trailing profit margin is about 13.3%, signaling a solid profit margin for its industry.
Understanding This Metric
EV/EBITDA is widely used when comparing companies with different debt loads because enterprise value includes net debt while EBITDA approximates operating cash earnings power. For Emerson Electric Co, the ratio should be read with growth, capex needs, and cycle position in Electrical Equipment. Pair EV/EBITDA with free cash flow yield and net debt metrics before drawing conclusions — especially when EBITDA is depressed or boosted by one-time items.
Using This Number in Practice
Near 21.98x EV/EBITDA, Emerson Electric Co (EMR) carries an elevated EV/EBITDA multiple that may embed growth expectations or scarcity within its peer set. Enterprise value of about $95.48B and EBITDA near $4.34B form the ratio — adjust for one-time items before treating the headline multiple as comparable.
Credit and LBO workflows often sort names on EV/EBITDA before drilling into free cash flow and maintenance capex. Pair this view with the EV/EBITDA calculator and the EMR metrics hub for related valuation pages.
Sector Comparison
Among Electrical Equipment names on our S&P 100 coverage, Emerson Electric Co's EV/EBITDA of 21.98 can be compared with peers such as ETN (29.35). Sector context helps interpretation, but each company's growth profile and balance sheet differ — use multiple metrics before drawing conclusions. View all Electrical Equipment stocks.
Key Takeaways
- EMR is grouped in the Electrical Equipment sector for peer comparisons.
- Recent beta of 1.24 suggests higher-than-market price sensitivity.
- Trailing profit margin of 13.3% provides context for how much earnings support the headline multiple.
Related Tools & Guides
Explore calculators and guides connected to this metric, or view all metrics for EMR.
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Frequently Asked Questions
What is EMR's EV/EBITDA?
EV/EBITDA compares enterprise value to operating earnings before interest, taxes, depreciation, and amortization. Emerson Electric Co's ratio is about 21.98 — common for comparing leveraged companies in Electrical Equipment.
Is 21.98 high or low vs peers?
Among Electrical Equipment peers (e.g. ETN (29.35)), EMR's 21.98 should be read with growth, capex, and debt levels.
When is EV/EBITDA misleading?
EBITDA ignores capex, working capital, and stock-based comp; negative or tiny EBITDA makes the ratio meaningless. Cross-check with free cash flow and net debt.
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