Emerson Electric Co PEG Ratio
Data as of August 04, 2026
PEG Ratio
3.37
PE Ratio (TTM)
34.33
EPS (TTM)
$4.33
Sector
Electrical Equipment
How It's Calculated
3.37 = 34.33 ÷ Growth Rate
What This Means
Emerson Electric Co's PEG ratio of 3.37 is above 2, suggesting the stock may be overvalued relative to its growth rate. Investors are paying a premium for each unit of earnings growth.
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
The PEG ratio adjusts the PE multiple for expected earnings growth, helping compare fast-growing and slow-growing names on a more equal footing. For Emerson Electric Co, a PEG near 1 is often described as fairly valued relative to growth, though the growth estimate itself can change quickly with guidance revisions.
Sector Comparison
Among Electrical Equipment names on our S&P 100 coverage, Emerson Electric Co's PEG ratio of 3.37 can be compared with peers such as ETN (1.91). 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
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Frequently Asked Questions
What is EMR's PEG ratio?
PEG adjusts PE for expected earnings growth: PEG ≈ PE ÷ earnings growth rate. Emerson Electric Co's PEG of 3.37 is a shorthand for growth-at-a-reasonable-price comparisons.
Does PEG suggest growth at a reasonable price?
PEG above 1.5 (3.37) may mean the market prices in high growth — or that growth estimates lag reality.
What are limitations of PEG for EMR?
PEG depends on a single growth estimate, ignores balance sheet risk, and can mislead when earnings are volatile. Use it with PE, margins, and Electrical Equipment peers — not as a standalone verdict.
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