EMR trades against a final fair-value range of $88.69-$155.92, with the midpoint set by the accepted valuation synthesis rather than earlier draft model outputs. Fair value range: low $88.7, high $156, with mid-point at $122.
Currently screens above fair value, so patience matters more than entry speed.
Fair value
$122
Margin of safety
-12.3%
Confidence
87/100
Moat
9/10
Educational analysis only — not financial advice. Always do your own due diligence.
$137.28Price
Low $88.69
Mid $122.21
High $155.92
EMR trades against a final fair-value range of $88.69-$155.92, with the midpoint set by the accepted valuation synthesis rather than earlier draft model outputs.
High switching costs associated with
High switching costs associated with mission-critical process automation platforms like DeltaV.
Sticky, high-margin software and service
Sticky, high-margin software and service recurring revenue base.
Bull thesis
Reduce-side internal valuation cross-checks ($164.87) aggressively prices in perfect execution of the M&A synergy playbook and permanent retention of 24.2% outlier margins.
EMR (EMR)'s margin set covers gross margin, operating margin, net margin, and free-cash-flow margin. The five-year trajectory is plotted so the reader can separate cyclical noise from secular trend.
Margin expansion or compression is read against the revenue base: if operating margin expands while revenue grows, that is operating leverage. If gross margin compresses, the cause (mix shift, input costs, pricing) is annotated in the numbers analysis.
Peer-relative margin context lives on the parent peers tab, which sets EMR's gross, operating, and net margins against four to five named peers from the same archetype and sector.
FCF margin is reported alongside operating margin so the reader can spot cases where capex intensity changes the cash-conversion read even when reported profitability is steady.
FAQ
EMR — frequently asked questions
Based on our latest analysis, EMR screens modestly overvalued. The current price is $137 versus a composite fair-value midpoint of $122 (range $88.7–$156), which implies roughly 11.0% downside to the midpoint.
Our composite fair-value range for EMR is $88.7–$156, with a midpoint of $122. The range is triangulated across multiple valuation models (discounted earnings, forward earnings scenarios, peer multiples, and where applicable owner earnings or reverse DCF) and weighted by reliability for EMR's archetype.
Our current rating for EMR is Reduce with a confidence score of 87/100. EMR is rated Reduce at $137.28 versus the reconciled fair value midpoint of $122.21, implying -10.98% upside/downside. Confidence is separately disclosed at 87/100. This is research for educational purposes, not personalized investment advice.
The top risks our latest report flags for EMR are: M&A Value Destruction; Automation CAPEX Freeze; Margin Reversion. The single biggest risk is M&A Value Destruction: Failure to extract synergies from recent software acquisitions causes ROIC to stagnate below WACC, driven by the $18B goodwill burden.
Our current rating for EMR is Reduce, issued with a confidence score of 87/100 and a moat score of 9/10. The rating reflects the composite fair-value range ($88.7–$156) versus the current price of $137.
EMR is classified as a mature compounder stock. Archetype determines how every downstream parameter — discount rate, terminal growth, deceleration curve, terminal multiple, scenario probability weights, scorecard weights, and which valuation models are prioritized — is calibrated for EMR.
