Emerson Electric Co (MIL:1EMR) GF Value Rank : 6 (As of May. 14, 2024)

View and export this data going back to 2023. Start your Free Trial

What is Emerson Electric Co GF Value Rank?

Emerson Electric Co has the GF Value Rank of 6.

The GF Value Rank is determined by the price-to-GF-Value (P/GF Value) ratio, a proprietary metric calculated based on historical multiples along with an adjustment factor based on a company's past returns and growth and future estimates of the business' performance.

GuruFocus found that for valuation, we cannot simply give stocks a better GF Value rank simply because they have a lower P/GF Value ratio. Backtesting shows that over the long term, the two worst-performing groups are the most expensive group (with the highest P/GF Value ratio) and the least expensive group (with the lowest P/GF Value ratio).

We can understand why the most expensive group underperforms. We were initially puzzled by the underperformance of the least expensive group, but we realized there is a reason why some stocks are super cheap. If they look too undervalued, it is often because the businesses behind them are poor quality. The market realized this and gave them low valuations. In a way, the market is efficient.

After multiple backtesting analyses, we granted the stocks in third-cheapest percentile the highest GF Value rank, as they have performed the best over a full market cycle. Stock performance is actually not as sensitive to valuation as it is to growth and profitability. On average, the companies in the 20%-50% valuation groups have similar performances. Therefore, we should avoid the most expensive and the least expensive stocks. We can be more tolerant of valuation.

Please click GF Score to see more details on the GF Score's 5 Key Aspects of Analysis.

Competitive Comparison of Emerson Electric Co's GF Value Rank

For the Specialty Industrial Machinery subindustry, Emerson Electric Co's GF Value Rank, along with its competitors' market caps and GF Value Rank 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 GF Value Rank Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Emerson Electric Co's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Emerson Electric Co's GF Value Rank falls into.

Emerson Electric Co GF Value Rank Related Terms

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

Emerson Electric Co (MIL:1EMR) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Emerson Electric Co (MIL:1EMR) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

EMR:USA EMR:Mexico EMR:Germany E1MR34:Brazil

Address

8000 West Florissant Avenue, P.O. Box 4100, St. Louis, MO, USA, 63136

Website

https://www.emerson.com

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.

Emerson Electric Co (MIL:1EMR) Headlines

No Headlines