Emerson Electric Co
EMRAbove valueHeld by 2 superinvestors.
SEC 10-K · fundamentals
Business quality
as of 2025-09-30Valuation basis: trailing twelve months to 2026-06-30 — latest 10-K plus unaudited 10-Q filings.
- Revenue growth
- +3.0%
- Net margin
- 12.7%
- ROE
- 11.3%
- FCF margin
- 14.8%
Valuation · value band
Above fair value
Zero-growth floor
$57
Central IV
$75
Optimistic top
$89
Emerson Electric Co (EMR): A conservative value band $57–$89 / sh (zero-growth floor to growth-capped optimistic top); central read about $75. Today’s price sits above that band (price $158 as of 2026-08-26).
The middle figure is the main read. The right end is the optimistic case under the same conservative caps — not an absolute ceiling.
Revenue growth 2% (lower of historical trend and fundamental cap, capped by moat) · moat 10 yr · discount 10.6% · Zero-growth downside $57
Price as of 2026-08-26 · yahoo · DGS10 4.7% @ 2026-08-26.
Method & numbers
Operating income is not reported separately (e.g. banks, insurers, and some diversified issuers), so earnings power is shown via the owner-earnings lens only; the unlevered NOPAT lens does not apply.
A conservative intrinsic-value band (zero-growth floor to growth-capped DCF) plus a tangible asset floor — not investment advice, not a buy/sell signal, and not a price target.
Owner-earnings DCF $55.46 – $89.47 · Greenwald zero-growth $69.72 · zero-growth base $69.72 · reproduction $15.20
Moat Franchise (moat) · terminal value 44% of present value · owner-earnings yield 4% vs 10Y 4.7%.
Graham earnings-power value (normalized NOPAT)
Operating income is not reported separately (e.g. banks, insurers, and some diversified issuers), so earnings power is shown via the owner-earnings lens only; the unlevered NOPAT lens does not apply.
Normalized NOPAT from operating margin — not applicable when operating income is not reported separately. Unlevered (pre-interest, attributable to all capital). Capitalized at the 9–11% rate band (read as a WACC proxy). Enterprise → equity bridge (+ cash − total debt) — not applied (lens not assessable).
Years: TTM 2026-06-30, 2024, 2023, 2022, 2021
Buffett owner-earnings value$57.09 – $69.72 / sh
Owner earnings = average net income + average D&A − maintenance capex (zero-growth floor; no ΔNWC). Levered (starts from net income, already after interest — an equity-holder stream). Capitalized at the 9.0–11.0% band (9–11% base + 0.0pp leverage premium). No enterprise→equity bridge: the capitalized result is already equity value (subtracting debt would double-count interest).
Years: TTM 2026-06-30, 2024, 2023, 2022, 2021
v1 simplifications: Net income is below its multi-year average (cyclical/declining): normalized owner earnings anchored to the latest year — no peak-earnings capitalization (audit #2). Owner earnings = net income + D&A − maintenance capex (degraded); the working-capital change is excluded (maintenance ΔNWC ≈ 0; growth ΔNWC is carried in growth value, not double-counted). Maintenance-capex methods diverge by 425% (> 50%); estimate is degraded. One-time items are not separately normalized (multi-year averaging smooths them partially). Share-based compensation is left as a real expense (not added back); see the SBC/OE disclosure. Capitalized at the 9–11% base band plus a 0.0pp leverage premium (cost of equity rises with leverage — MM Proposition II). Net debt is about 3.1 years of owner earnings, adding 0.0pp of cost-of-equity risk premium.
Reproduction value = tangible net assets $-6.43B + capitalized R&D $1.55B（FY 2026, 2024, 2023, 2022） = $15.20 / sh. Reproduction value = intangible-inclusive net reproduction (tangible net assets + acquired-intangible reset proxy + capitalized R&D), ÷ diluted shares; tangible net assets alone are negative for this asset-light franchise.
Moat reading: Franchise test compares earnings power (EPV) against reproduction value (tangible net assets + capitalized R&D). EPV well above reproduction value signals a moat; near it, a commodity; below it, value destruction. A directional reading, not a verdict.
Assumes a narrow moat · competitive-advantage period ≈ 10 years.
Growth value not assessable — Operating income is not available across the window, so ROIIC / growth value cannot be computed.
Window TTM 2026-06-30, FY 2024, 2023, 2022, 2021 · discount band 9%–11% · normalized tax 21% (Average effective tax rate over 5 year(s), capped at the statutory 21%.) · diluted shares.
Baseline 9%–11%, net debt ≈ 3.1 years of owner earnings → +0.0pp cost-of-equity premium → effective 9.0%–11.0%.
Owner-earnings DCF: growth g₁ 2% · OE FY TTM 2026-06-30, 2024, 2023, 2022, 2021 · Discount band: 9.20%–12.04% (DGS10 +4.5% to a 12% strict end, each +0.04pp for leverage premium, as of 2026-08-26). No enterprise→equity bridge: owner earnings already flow to shareholders (post-interest), so no net cash is added and no debt subtracted — matching the engine owner-earnings lamp.
Valuation basis: trailing twelve months to 2026-06-30 — latest 10-K plus unaudited 10-Q filings.
How to read intrinsic valueSEC 13F · holders
Superinvestors Holding This Security
2 holders · $6.5M combined · this quarter +0 opened / -1 exited
- Value$5.2MWeight (prev→now)0.1% → 0.0% ▼
- Value$1.3MWeight (prev→now)0.1% → 0.1% ▲
SEC 13F · notes
Written summary
Written summary
Emerson Electric Co (EMR) is held by 2 of the superinvestors tracked on Compounder, with a combined $6.5M in reported 13F value. The largest position belongs to Ray Dalio, where it makes up 0.0% of the portfolio.
Other notable holders by value include Tweedy, Browne (0.1% of its book).
Over the latest quarter, 0 of the tracked filers opened a new position in EMR, 0 added to existing ones, 2 trimmed, and 1 sold out entirely.
Holder counts and values reflect the most recent SEC Form 13F filings, through the quarter ended 2026-06-30. Source: SEC EDGAR. A 13F shows only long US-listed positions and can lag the real portfolio by up to 45 days, so this is disclosed long ownership, not a complete picture.
SEC 13F · co-ownership
Also held by these investors
Investors holding Emerson Electric Co (EMR) also commonly hold →
- Alphabet Inc-Cl AGOOGL2 holders
- Johnson & JohnsonJNJ2 holders
- Union Pacific CorpUNP2 holders
- Wells Fargo & CoWFC2 holders
- Truist Financial CorpTFC2 holders
- Bank Of America CorpBAC2 holders
EMR's price is not below its conservative value band. See current strike-zone stocks
Sources· SEC EDGAR 13F as of 2026-06-30 · filed 2026-08-14
Educational data only — not investment advice. 13F positions are self-reported and can lag up to 45 days.
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