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Emerson Electric Co (BSP:E1MR34) Cyclically Adjusted PB Ratio : 6.01 (As of May. 31, 2024)


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What is Emerson Electric Co Cyclically Adjusted PB Ratio?

As of today (2024-05-31), Emerson Electric Co's current share price is R$579.42. Emerson Electric Co's Cyclically Adjusted Book per Share for the quarter that ended in Mar. 2024 was R$96.35. Emerson Electric Co's Cyclically Adjusted PB Ratio for today is 6.01.

The historical rank and industry rank for Emerson Electric Co's Cyclically Adjusted PB Ratio or its related term are showing as below:

BSP:E1MR34' s Cyclically Adjusted PB Ratio Range Over the Past 10 Years
Min: 3   Med: 4.85   Max: 6.89
Current: 5.76

During the past years, Emerson Electric Co's highest Cyclically Adjusted PB Ratio was 6.89. The lowest was 3.00. And the median was 4.85.

BSP:E1MR34's Cyclically Adjusted PB Ratio is ranked worse than
86.58% of 2139 companies
in the Industrial Products industry
Industry Median: 1.87 vs BSP:E1MR34: 5.76

The Shiller PE Ratio was first used by professor Robert Shiller. He uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings per share of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PB Ratio. The Cyclically Adjusted Book per Share is the average of the inflation adjusted book value per share of a company over the past 10 years.

Emerson Electric Co's adjusted book value per share data for the three months ended in Mar. 2024 was R$181.922. Add all the adjusted book value per share for the past 10 years together and divide the count will get our Cyclically Adjusted Book per Share, which is R$96.35 for the trailing ten years ended in Mar. 2024.

Shiller PE for Stocks: The True Measure of Stock Valuation


Emerson Electric Co Cyclically Adjusted PB Ratio Historical Data

The historical data trend for Emerson Electric Co's Cyclically Adjusted PB Ratio can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Emerson Electric Co Cyclically Adjusted PB Ratio Chart

Emerson Electric Co Annual Data
Trend Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23
Cyclically Adjusted PB Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.55 4.44 6.10 4.40 5.32

Emerson Electric Co Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Cyclically Adjusted PB Ratio Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.14 5.14 5.32 5.27 5.89

Competitive Comparison of Emerson Electric Co's Cyclically Adjusted PB Ratio

For the Specialty Industrial Machinery subindustry, Emerson Electric Co's Cyclically Adjusted PB Ratio, along with its competitors' market caps and Cyclically Adjusted PB Ratio data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Emerson Electric Co's Cyclically Adjusted PB Ratio Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Emerson Electric Co's Cyclically Adjusted PB Ratio distribution charts can be found below:

* The bar in red indicates where Emerson Electric Co's Cyclically Adjusted PB Ratio falls into.



Emerson Electric Co Cyclically Adjusted PB Ratio Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted PB Ratio takes the Book Value per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/B calculation. Because it considers this 10-year average, it's often referred to as the CAPB Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PB Ratio.

Emerson Electric Co's Cyclically Adjusted PB Ratio for today is calculated as

Cyclically Adjusted PB Ratio=Share Price/ Cyclically Adjusted Book per Share
=579.42/96.35
=6.01

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Emerson Electric Co's Cyclically Adjusted Book per Share for the quarter that ended in Mar. 2024 is calculated as:

For example, Emerson Electric Co's adjusted Book Value per Share data for the three months ended in Mar. 2024 was:

Adj_Book=Book Value per Share/CPI of Mar. 2024 (Change)*Current CPI (Mar. 2024)
=181.922/131.7762*131.7762
=181.922

Current CPI (Mar. 2024) = 131.7762.

Emerson Electric Co Quarterly Data

Book Value per Share CPI Adj_Book
201406 34.604 100.560 45.346
201409 33.961 100.428 44.562
201412 36.494 99.070 48.542
201503 41.574 99.621 54.993
201506 41.043 100.684 53.718
201509 48.184 100.392 63.247
201512 44.993 99.792 59.413
201603 44.220 100.470 57.999
201606 42.039 101.688 54.478
201609 38.302 101.861 49.551
201612 40.127 101.863 51.911
201703 38.857 102.862 49.779
201706 41.020 103.349 52.303
201709 42.558 104.136 53.854
201712 43.376 104.011 54.955
201803 44.091 105.290 55.183
201806 50.485 106.317 62.575
201809 58.424 106.507 72.286
201812 51.938 105.998 64.569
201903 53.263 107.251 65.443
201906 53.650 108.070 65.419
201909 55.509 108.329 67.523
201912 56.514 108.420 68.688
202003 61.475 108.902 74.388
202006 67.989 108.767 82.372
202009 75.898 109.815 91.076
202012 76.296 109.897 91.486
202103 85.790 111.754 101.160
202106 78.153 114.631 89.842
202109 87.567 115.734 99.705
202112 97.571 117.630 109.305
202203 88.595 121.301 96.246
202206 87.921 125.017 92.675
202209 91.892 125.227 96.698
202212 98.473 125.222 103.627
202303 103.534 127.348 107.134
202306 173.799 128.729 177.913
202309 178.631 129.860 181.268
202312 177.188 129.419 180.415
202403 181.922 131.776 181.922

Add all the adjusted book value per share together and divide the count will get our Cyclically Adjusted Book per Share.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.


Emerson Electric Co  (BSP:E1MR34) Cyclically Adjusted PB Ratio Explanation

Compared with the regular PB Ratio, which works poorly for cyclical businesses, the Cyclically Adjusted PB Ratio smoothed out the fluctuations of book value during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Cyclically Adjusted PB Ratio should give similar results to regular PB Ratio.


Emerson Electric Co Cyclically Adjusted PB Ratio Related Terms

Thank you for viewing the detailed overview of Emerson Electric Co's Cyclically Adjusted PB Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


Emerson Electric Co (BSP:E1MR34) Business Description

Traded in Other Exchanges
Address
8000 West Florissant Avenue, P.O. Box 4100, St. Louis, MO, USA, 63136
Emerson Electric sells automation equipment and services under two segments: intelligent devices and software control. Within software and control, it also holds a majority interest in AspenTech, an industrial software business, and owns a test and measurement business that was formerly National Instruments. Intelligent devices also holds Emerson's tools business, which boasts several household brands, like Ridgid. Emerson's automation business is most known for its process manufacturing solutions, which consists of measurement and analytical instrumentation, as well as control valves and actuators, among other products and services. Nearly half of the firm's geographic sales come from the Americas.

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