It's been a great afternoon session for Emerson Electric Company investors, who saw their shares rise 2.79% to a price of $87.93 per share. At these higher prices, is the company still fairly valued? If you are thinking about investing, make sure to check the company's fundamentals before making a decision.
Emerson Electric Co. is an American multinational corporation headquartered in Ferguson, Missouri. The company belongs to the Industrials sector, which has an average price to earnings (P/E) ratio of 20.49 and an average price to book (P/B) ratio of 3.78. In contrast, Emerson Electric Company has a trailing 12 month P/E ratio of 18.09 and a P/B ratio of 5.49.
Emerson Electric Company's PEG ratio is 2.304, which shows that the stock is probably overvalued in terms of its estimated growth. For reference, a PEG ratio near or below 1 is a potential signal that a company is undervalued.