Intrinsic value of Emerson Electric Company - EMR

Previous Close

$68.79

  Intrinsic Value

$74.36

stock screener

  Rating & Target

hold

+8%

Previous close

$68.79

 
Intrinsic value

$74.36

 
Up/down potential

+8%

 
Rating

hold

We calculate the intrinsic value of EMR stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 0001), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 42.3

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
   2
   3
   4
   5
   6
   7
   8
   9
   10
   11
   12
   13
   14
   15
   16
   17
   18
   19
   20
   21
   22
   23
   24
   25
   26
   27
   28
   29
   30
   31

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  8.70
  8.33
  8.00
  7.70
  7.43
  7.18
  6.97
  6.77
  6.59
  6.43
  6.29
  6.16
  6.04
  5.94
  5.85
  5.76
  5.69
  5.62
  5.56
  5.50
  5.45
  5.40
  5.36
  5.33
  5.30
  5.27
  5.24
  5.22
  5.19
  5.17
Revenue, $m
  18,922
  20,499
  22,138
  23,842
  25,613
  27,453
  29,366
  31,354
  33,421
  35,571
  37,808
  40,138
  42,564
  45,092
  47,729
  50,479
  53,349
  56,345
  59,476
  62,747
  66,166
  69,742
  73,484
  77,399
  81,497
  85,789
  90,283
  94,992
  99,925
  105,095
Variable operating expenses, $m
  15,739
  16,973
  18,257
  19,592
  20,979
  22,420
  23,917
  25,474
  27,093
  28,777
  29,608
  31,432
  33,333
  35,313
  37,377
  39,531
  41,778
  44,125
  46,576
  49,138
  51,816
  54,616
  57,546
  60,612
  63,822
  67,182
  70,702
  74,389
  78,253
  82,302
Fixed operating expenses, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total operating expenses, $m
  15,739
  16,973
  18,257
  19,592
  20,979
  22,420
  23,917
  25,474
  27,093
  28,777
  29,608
  31,432
  33,333
  35,313
  37,377
  39,531
  41,778
  44,125
  46,576
  49,138
  51,816
  54,616
  57,546
  60,612
  63,822
  67,182
  70,702
  74,389
  78,253
  82,302
Operating income, $m
  3,183
  3,525
  3,881
  4,250
  4,634
  5,034
  5,448
  5,879
  6,328
  6,794
  8,200
  8,705
  9,231
  9,780
  10,352
  10,948
  11,570
  12,220
  12,899
  13,609
  14,350
  15,126
  15,937
  16,787
  17,675
  18,606
  19,581
  20,602
  21,672
  22,793
EBITDA, $m
  4,636
  5,022
  5,424
  5,841
  6,275
  6,726
  7,195
  7,682
  8,188
  8,715
  9,263
  9,834
  10,428
  11,048
  11,694
  12,367
  13,070
  13,805
  14,572
  15,373
  16,211
  17,087
  18,004
  18,963
  19,967
  21,018
  22,119
  23,273
  24,482
  25,748
Interest expense (income), $m
  192
  257
  310
  366
  424
  485
  548
  613
  681
  751
  825
  901
  980
  1,063
  1,149
  1,239
  1,332
  1,430
  1,532
  1,638
  1,749
  1,865
  1,986
  2,113
  2,246
  2,385
  2,530
  2,682
  2,842
  3,009
  3,184
Earnings before tax, $m
  2,926
  3,215
  3,515
  3,826
  4,150
  4,486
  4,835
  5,199
  5,576
  5,969
  7,299
  7,725
  8,169
  8,631
  9,113
  9,616
  10,141
  10,689
  11,261
  11,860
  12,485
  13,140
  13,824
  14,541
  15,291
  16,076
  16,899
  17,760
  18,663
  19,610
Tax expense, $m
  790
  868
  949
  1,033
  1,120
  1,211
  1,306
  1,404
  1,506
  1,612
  1,971
  2,086
  2,205
  2,330
  2,460
  2,596
  2,738
  2,886
  3,041
  3,202
  3,371
  3,548
  3,733
  3,926
  4,128
  4,341
  4,563
  4,795
  5,039
  5,295
Net income, $m
  2,136
  2,347
  2,566
  2,793
  3,029
  3,275
  3,530
  3,795
  4,071
  4,358
  5,328
  5,639
  5,963
  6,301
  6,652
  7,020
  7,403
  7,803
  8,221
  8,658
  9,114
  9,592
  10,092
  10,615
  11,162
  11,736
  12,336
  12,965
  13,624
  14,315

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  22,157
  24,003
  25,923
  27,918
  29,992
  32,147
  34,386
  36,714
  39,134
  41,652
  44,272
  47,000
  49,841
  52,801
  55,888
  59,109
  62,469
  65,978
  69,644
  73,474
  77,478
  81,666
  86,047
  90,631
  95,430
  100,455
  105,718
  111,231
  117,008
  123,063
Adjusted assets (=assets-cash), $m
  22,157
  24,003
  25,923
  27,918
  29,992
  32,147
  34,386
  36,714
  39,134
  41,652
  44,272
  47,000
  49,841
  52,801
  55,888
  59,109
  62,469
  65,978
  69,644
  73,474
  77,478
  81,666
  86,047
  90,631
  95,430
  100,455
  105,718
  111,231
  117,008
  123,063
Revenue / Adjusted assets
  0.854
  0.854
  0.854
  0.854
  0.854
  0.854
  0.854
  0.854
  0.854
  0.854
  0.854
  0.854
  0.854
  0.854
  0.854
  0.854
  0.854
  0.854
  0.854
  0.854
  0.854
  0.854
  0.854
  0.854
  0.854
  0.854
  0.854
  0.854
  0.854
  0.854
Average production assets, $m
  8,193
  8,876
  9,586
  10,324
  11,090
  11,887
  12,715
  13,576
  14,471
  15,402
  16,371
  17,380
  18,430
  19,525
  20,667
  21,857
  23,100
  24,398
  25,753
  27,169
  28,650
  30,198
  31,818
  33,514
  35,288
  37,146
  39,093
  41,131
  43,268
  45,506
Working capital, $m
  1,079
  1,168
  1,262
  1,359
  1,460
  1,565
  1,674
  1,787
  1,905
  2,028
  2,155
  2,288
  2,426
  2,570
  2,721
  2,877
  3,041
  3,212
  3,390
  3,577
  3,771
  3,975
  4,189
  4,412
  4,645
  4,890
  5,146
  5,415
  5,696
  5,990
Total debt, $m
  5,747
  6,783
  7,860
  8,979
  10,142
  11,351
  12,608
  13,913
  15,271
  16,684
  18,154
  19,684
  21,278
  22,939
  24,670
  26,477
  28,362
  30,331
  32,387
  34,536
  36,782
  39,131
  41,589
  44,161
  46,853
  49,672
  52,625
  55,718
  58,959
  62,355
Total liabilities, $m
  12,430
  13,466
  14,543
  15,662
  16,825
  18,034
  19,291
  20,596
  21,954
  23,367
  24,837
  26,367
  27,961
  29,622
  31,353
  33,160
  35,045
  37,014
  39,070
  41,219
  43,465
  45,814
  48,272
  50,844
  53,536
  56,355
  59,308
  62,401
  65,642
  69,038
Total equity, $m
  9,727
  10,537
  11,380
  12,256
  13,166
  14,112
  15,095
  16,117
  17,180
  18,285
  19,435
  20,633
  21,880
  23,180
  24,535
  25,949
  27,424
  28,964
  30,574
  32,255
  34,013
  35,851
  37,774
  39,787
  41,894
  44,100
  46,410
  48,831
  51,367
  54,024
Total liabilities and equity, $m
  22,157
  24,003
  25,923
  27,918
  29,991
  32,146
  34,386
  36,713
  39,134
  41,652
  44,272
  47,000
  49,841
  52,802
  55,888
  59,109
  62,469
  65,978
  69,644
  73,474
  77,478
  81,665
  86,046
  90,631
  95,430
  100,455
  105,718
  111,232
  117,009
  123,062
Debt-to-equity ratio
  0.590
  0.640
  0.690
  0.730
  0.770
  0.800
  0.840
  0.860
  0.890
  0.910
  0.930
  0.950
  0.970
  0.990
  1.010
  1.020
  1.030
  1.050
  1.060
  1.070
  1.080
  1.090
  1.100
  1.110
  1.120
  1.130
  1.130
  1.140
  1.150
  1.150
Adjusted equity ratio
  0.439
  0.439
  0.439
  0.439
  0.439
  0.439
  0.439
  0.439
  0.439
  0.439
  0.439
  0.439
  0.439
  0.439
  0.439
  0.439
  0.439
  0.439
  0.439
  0.439
  0.439
  0.439
  0.439
  0.439
  0.439
  0.439
  0.439
  0.439
  0.439
  0.439

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  2,136
  2,347
  2,566
  2,793
  3,029
  3,275
  3,530
  3,795
  4,071
  4,358
  5,328
  5,639
  5,963
  6,301
  6,652
  7,020
  7,403
  7,803
  8,221
  8,658
  9,114
  9,592
  10,092
  10,615
  11,162
  11,736
  12,336
  12,965
  13,624
  14,315
Depreciation, amort., depletion, $m
  1,453
  1,497
  1,543
  1,591
  1,641
  1,692
  1,746
  1,802
  1,860
  1,921
  1,063
  1,129
  1,197
  1,268
  1,342
  1,419
  1,500
  1,584
  1,672
  1,764
  1,860
  1,961
  2,066
  2,176
  2,291
  2,412
  2,538
  2,671
  2,810
  2,955
Funds from operations, $m
  3,589
  3,844
  4,109
  4,384
  4,670
  4,967
  5,276
  5,597
  5,931
  6,278
  6,391
  6,768
  7,160
  7,568
  7,994
  8,439
  8,903
  9,387
  9,893
  10,422
  10,975
  11,553
  12,158
  12,791
  13,454
  14,148
  14,874
  15,636
  16,434
  17,270
Change in working capital, $m
  86
  90
  93
  97
  101
  105
  109
  113
  118
  123
  128
  133
  138
  144
  150
  157
  164
  171
  178
  186
  195
  204
  213
  223
  234
  245
  256
  268
  281
  295
Cash from operations, $m
  3,503
  3,754
  4,015
  4,287
  4,569
  4,862
  5,167
  5,484
  5,813
  6,156
  6,264
  6,635
  7,021
  7,424
  7,844
  8,282
  8,739
  9,216
  9,715
  10,235
  10,780
  11,349
  11,945
  12,568
  13,220
  13,903
  14,618
  15,368
  16,153
  16,975
Maintenance CAPEX, $m
  -490
  -532
  -576
  -622
  -670
  -720
  -772
  -826
  -882
  -940
  -1,000
  -1,063
  -1,129
  -1,197
  -1,268
  -1,342
  -1,419
  -1,500
  -1,584
  -1,672
  -1,764
  -1,860
  -1,961
  -2,066
  -2,176
  -2,291
  -2,412
  -2,538
  -2,671
  -2,810
New CAPEX, $m
  -649
  -683
  -710
  -738
  -767
  -797
  -828
  -861
  -895
  -931
  -969
  -1,009
  -1,051
  -1,095
  -1,142
  -1,191
  -1,243
  -1,298
  -1,355
  -1,416
  -1,481
  -1,548
  -1,620
  -1,695
  -1,775
  -1,858
  -1,946
  -2,039
  -2,136
  -2,239
Cash from investing activities, $m
  -1,139
  -1,215
  -1,286
  -1,360
  -1,437
  -1,517
  -1,600
  -1,687
  -1,777
  -1,871
  -1,969
  -2,072
  -2,180
  -2,292
  -2,410
  -2,533
  -2,662
  -2,798
  -2,939
  -3,088
  -3,245
  -3,408
  -3,581
  -3,761
  -3,951
  -4,149
  -4,358
  -4,577
  -4,807
  -5,049
Free cash flow, $m
  2,364
  2,539
  2,729
  2,926
  3,132
  3,345
  3,567
  3,797
  4,037
  4,285
  4,295
  4,563
  4,842
  5,133
  5,435
  5,749
  6,077
  6,419
  6,775
  7,147
  7,535
  7,940
  8,364
  8,806
  9,269
  9,753
  10,260
  10,790
  11,346
  11,927
Issuance/(repayment) of debt, $m
  987
  1,035
  1,077
  1,119
  1,163
  1,209
  1,256
  1,306
  1,358
  1,412
  1,470
  1,530
  1,594
  1,661
  1,732
  1,807
  1,885
  1,969
  2,056
  2,149
  2,246
  2,349
  2,458
  2,572
  2,692
  2,819
  2,952
  3,093
  3,241
  3,396
Issuance/(repurchase) of shares, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  987
  1,035
  1,077
  1,119
  1,163
  1,209
  1,256
  1,306
  1,358
  1,412
  1,470
  1,530
  1,594
  1,661
  1,732
  1,807
  1,885
  1,969
  2,056
  2,149
  2,246
  2,349
  2,458
  2,572
  2,692
  2,819
  2,952
  3,093
  3,241
  3,396
Total cash flow (excl. dividends), $m
  3,351
  3,575
  3,806
  4,046
  4,295
  4,554
  4,823
  5,103
  5,395
  5,698
  5,765
  6,093
  6,436
  6,794
  7,167
  7,556
  7,962
  8,387
  8,831
  9,296
  9,781
  10,289
  10,821
  11,378
  11,962
  12,572
  13,213
  13,883
  14,586
  15,323
Retained Cash Flow (-), $m
  -780
  -810
  -843
  -876
  -910
  -946
  -983
  -1,022
  -1,063
  -1,105
  -1,150
  -1,197
  -1,247
  -1,300
  -1,355
  -1,414
  -1,475
  -1,540
  -1,609
  -1,681
  -1,758
  -1,838
  -1,923
  -2,013
  -2,107
  -2,206
  -2,310
  -2,420
  -2,536
  -2,658
Prev. year cash balance distribution, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
  2,571
  2,765
  2,963
  3,170
  3,385
  3,608
  3,840
  4,081
  4,332
  4,592
  4,615
  4,896
  5,189
  5,494
  5,811
  6,142
  6,487
  6,847
  7,222
  7,614
  8,023
  8,451
  8,898
  9,366
  9,855
  10,366
  10,902
  11,463
  12,050
  12,666
Discount rate, %
  4.30
  4.52
  4.74
  4.98
  5.23
  5.49
  5.76
  6.05
  6.35
  6.67
  7.00
  7.35
  7.72
  8.11
  8.51
  8.94
  9.39
  9.86
  10.35
  10.87
  11.41
  11.98
  12.58
  13.21
  13.87
  14.56
  15.29
  16.05
  16.86
  17.70
PV of cash for distribution, $m
  2,465
  2,531
  2,579
  2,610
  2,624
  2,619
  2,594
  2,551
  2,488
  2,408
  2,191
  2,089
  1,973
  1,844
  1,706
  1,561
  1,411
  1,261
  1,112
  968
  830
  701
  583
  477
  383
  302
  234
  177
  132
  95
Current shareholders' claim on cash, %
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0

Emerson Electric Co. is a diversified global manufacturing company, which provides solutions to customers by bringing technology and engineering together in the industrial, commercial and consumer markets around the world. The Company operates through four segments based on the nature of the products and services rendered: Process Management, Industrial Automation, Climate Technologies and Commercial & Residential Solutions. The Company's principal production operations are electronics assembly, metal stamping, forming, casting, machining, welding, plating, heat treating, painting and assembly. In addition, the Company uses specialized production operations, including automatic and semiautomatic testing, automated material handling and storage, ferrous and nonferrous machining, and special furnaces for heat treating and foundry applications. The Company provides measurement, control and diagnostic technologies for automated industrial processes.

FINANCIAL RATIOS  of  Emerson Electric Company (EMR)

Valuation Ratios
P/E Ratio 29.1
Price to Sales 2.9
Price to Book 5.1
Price to Tangible Book
Price to Cash Flow 23.1
Price to Free Cash Flow 30.7
Growth Rates
Sales Growth Rate 5.1%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 6.5%
Cap. Spend. - 3 Yr. Gr. Rate -6.1%
Financial Strength
Quick Ratio 4
Current Ratio 0.1
LT Debt to Equity 43.5%
Total Debt to Equity 53.4%
Interest Coverage 13
Management Effectiveness
Return On Assets 8%
Ret/ On Assets - 3 Yr. Avg. 9.5%
Return On Total Capital 11%
Ret/ On T. Cap. - 3 Yr. Avg. 13.2%
Return On Equity 18.6%
Return On Equity - 3 Yr. Avg. 23.1%
Asset Turnover 0.7
Profitability Ratios
Gross Margin 41.9%
Gross Margin - 3 Yr. Avg. 42.5%
EBITDA Margin 20.7%
EBITDA Margin - 3 Yr. Avg. 23.4%
Operating Margin 16.3%
Oper. Margin - 3 Yr. Avg. 17%
Pre-Tax Margin 15.3%
Pre-Tax Margin - 3 Yr. Avg. 18.2%
Net Profit Margin 9.9%
Net Profit Margin - 3 Yr. Avg. 12.6%
Effective Tax Rate 28.3%
Eff/ Tax Rate - 3 Yr. Avg. 30.5%
Payout Ratio 81.6%

EMR stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the EMR stock intrinsic value calculation we used $17408 million for the last fiscal year's total revenue generated by Emerson Electric Company. The default revenue input number comes from 0001 income statement of Emerson Electric Company. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our EMR stock valuation model: a) initial revenue growth rate of 8.7% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 4.3%, whose default value for EMR is calculated based on our internal credit rating of Emerson Electric Company, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Emerson Electric Company.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of EMR stock the variable cost ratio is equal to 83.6%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $0 million in the base year in the intrinsic value calculation for EMR stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 5.4% for Emerson Electric Company.

Corporate tax rate of 27% is the nominal tax rate for Emerson Electric Company. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the EMR stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for EMR are equal to 43.3%.

Life of production assets of 15.4 years is the average useful life of capital assets used in Emerson Electric Company operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for EMR is equal to 5.7%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $8947 million for Emerson Electric Company - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 614.585 million for Emerson Electric Company is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Emerson Electric Company at the current share price and the inputted number of shares is $42.3 billion.

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