Emerson Electric Co (EMR) is overvalued and Eaton Corp Plc (ETN) is overvalued.
Both trade above our estimate of their intrinsic value. EMR is the closer of the two: -51%, against -162% for ETN.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 10.0% (average of 3 methods) values the shares at $102.12; the price of $154.19 is 51% above that value, and 73% of that value comes from beyond year five.
Leak Score 51/100 on 9 of 12 signals
Discounting its cash flows at 9.9% (average of 3 methods) values the shares at $169.15; the price of $442.49 is 162% above that value, and 73% of that value comes from beyond year five.
Leak Score 27/100 on 3 of 12 signals
| Metric | EMR | ETN |
|---|---|---|
| Verdict | Overvalued | Overvalued |
| Price | $154.19 | $442.49 |
| Intrinsic value | $102.12 | $169.15 |
| Margin of safety | -51% | -162% |
| Leak Score | 51/100 (9/12) | 27/100 (3/12) |
| Market cap | $86.0B | $171.9B |
| Revenue growth, 5 years | 1.4% | 9.0% |
| Operating margin | 20.6% | 19.4% |
| Net margin | 13.8% | 12.8% |
| Return on equity | 12.8% | 19.7% |
| Debt to equity | 0.68 | 1.05 |
| P/E | 33.7x | 45.0x |
| Forward P/E | 21.2x | 27.5x |
| P/B | 4.2x | 8.5x |
| Dividend yield | 1.4% | 1.0% |