Emerson Electric Co. (EMR)

Industry: Industrial - Machinery Model: Peers Multiples Valuation

Valuation Snapshot

Ticker	Rank	Name	Rev TTM (M)	Trailing P/E	Forward P/E	Trailing EV/EBITDA	Forward EV/EBITDA	Trailing EV/EBIT	Forward EV/EBIT
ETN	6	Eaton Corporation	31,273	37.05	30.09	25.94	22.20	28.60	26.17
7011.T	7	Mitsubishi Heavy I	31,109	51.47	16.28	23.14	19.61	58.18	27.72
WI4.VI	8	Weichai Power Co.,	30,707	11.45	10.85	4.26	4.02	4.97	5.07
0QO1.L	9	Schindler Holding	21,341	22.46	22.54	15.49	14.82	21.90	16.04
PH	10	Parker-Hannifin Co	20,030	26.34	21.06	18.96	15.98	25.57	21.81
009540.KS	11	Korea Shipbuilding	18,701	15.38	8.83	5.66	4.12	5.80	4.90
ATCO-A.ST	12	Atlas Copco AB	18,445	28.03	24.79	17.49	15.50	22.64	19.41
EMR	13	Emerson Electric C	18,015	32.35	31.37	17.33	16.04	33.71	26.20
601727.SS	14	Shanghai Electric	17,297	138.81	177.61	36.53	39.11	303.83	63.02
373220.KS	15	LG Energy Solution	17,042	-	-	17.06	17.06	43.13	77.93
6594.T	16	Nidec Corporation	16,801	16.91	14.40	8.41	7.43	15.42	11.20
CYD	17	China Yuchai Inter	16,172	16.66	17.31	4.87	4.76	5.17	9.95
ITW	18	Illinois Tool Work	15,883	25.06	23.31	18.20	17.07	18.85	18.64
OTIS	19	Otis Worldwide Cor	14,310	26.54	24.33	19.30	18.50	18.51	19.40
7012.T	20	Kawasaki Heavy Ind	13,963	23.70	17.12	11.64	9.81	43.11	15.94
KC4.DE	21	KONE Oyj	13,212	28.41	28.09	16.84	16.42	20.31	21.72

Line Item	Trailing P/E	Forward P/E	Trailing EV/EBITDA	Forward EV/EBITDA	Trailing EV/EBIT	Forward EV/EBIT
Winsorized Median Multiple	24.38	19.18	16.84	15.50	20.31	18.64
Full Range Median Multiple	25.70	21.80	17.06	15.98	21.90	19.40
Industry Multiple	33.45	31.19	16.25	15.09	42.40	23.93
Market Implied Multiple	36.86	35.74	19.42	17.98	37.77	29.36
Company (EMR) Multiple	32.35	31.37	17.33	16.04	33.71	26.20
(*) Net Income / EBITDA / Revenue	2,293	2,365	4,948	5,345	2,544	3,273
Winsorized Enterprise Value	N/A	N/A	83,349	82,869	51,663	61,008
Full Range Median Enterprise Value	N/A	N/A	84,413	85,416	55,722	63,492
(-) Net Debt	11,572	11,572	11,572	11,572	11,572	11,572
Winsorized Equity Value	55,902	45,369	71,777	71,297	40,091	49,436
Full Range Median Equity Value	58,933	51,548	72,841	73,844	44,150	51,920
(/) Shares Outstanding	566	566	566	566	566	566
Winsorized Fair Value	$98.85	$80.23	$126.93	$126.08	$70.90	$87.42
Full Range Median Fair Value	$104.21	$91.15	$128.81	$130.58	$78.07	$91.81
Current Price	$149.46	$149.46	$149.46	$149.46	$149.46	$149.46
Upside / Downside	-33.86%	-46.32%	-15.08%	-15.64%	-52.57%	-41.51%
Safety Margin	30.0%	30.0%	30.0%	30.0%	30.0%	30.0%
Buy Price	$69.20	$56.16	$88.85	$88.25	$49.63	$61.19
Buy / Don't Buy	Don’t Buy	Don’t Buy	Don’t Buy	Don’t Buy	Don’t Buy	Don’t Buy