Money and Finance
Last week was a slow week for the blog because work was really busy, so I figured I'd give y'all another stock analysis. This time I decided to take a look at Emerson Electric Company (EMR). Emerson closed on Friday 5/25/12 at $47.28.
Company Background:
Emerson Electric Co. operates as a diversified technology company worldwide. It engages in designing and supplying products and technology, and delivering engineering services and solutions to industrial, commercial, and consumer markets. The companys Process Management segment offers customers products and technology, and engineering and project management services for precision measurement, control, monitoring, and asset optimization of oil and gas reservoirs and power generating plants, as well as for food and beverage, pulp and paper, pharmaceutical, and municipal water supply industries. Its Industrial Automation segment provides integrated manufacturing solutions for products, such as motors, power generating alternators, power transmission solutions, and fluid controls and materials joining equipment. The companys Network Power segment designs, manufactures, installs, and maintains products, which offer grid to chip electric power conditioning, power reliability, and environmental control for telecommunications networks, data centers, and other critical applications, as well as provides comprehensive data center infrastructure management solutions. Its Climate Technologies segment offers products and services for the climate control industry, including residential heating and cooling, commercial air conditioning, and commercial and industrial refrigeration. The companys Tools and Storage segment provides a range of professional and do-it-yourself tools, storage solutions, and appliances and components. Emerson Electric Co. operates primarily in the United States, Canada, Asia, Europe, Latin America, the Middle East, and Africa.
DCF Valuation:
Analysts expect Emerson to grow earnings 11.32% per year for the next five years and I've assumed they can continue to grow at 3.00% per year thereafter. Running these numbers through a DCF analysis with a 10% discount rate yields a fair value price of $70.40. This means that at $47.28 the shares are undervalued by 33%.
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Money and Finance
Emerson Stock Analysis
Last week was a slow week for the blog because work was really busy, so I figured I'd give y'all another stock analysis. This time I decided to take a look at Emerson Electric Company (EMR). Emerson closed on Friday 5/25/12 at $47.28.
Company Background:
Emerson Electric Co. operates as a diversified technology company worldwide. It engages in designing and supplying products and technology, and delivering engineering services and solutions to industrial, commercial, and consumer markets. The companys Process Management segment offers customers products and technology, and engineering and project management services for precision measurement, control, monitoring, and asset optimization of oil and gas reservoirs and power generating plants, as well as for food and beverage, pulp and paper, pharmaceutical, and municipal water supply industries. Its Industrial Automation segment provides integrated manufacturing solutions for products, such as motors, power generating alternators, power transmission solutions, and fluid controls and materials joining equipment. The companys Network Power segment designs, manufactures, installs, and maintains products, which offer grid to chip electric power conditioning, power reliability, and environmental control for telecommunications networks, data centers, and other critical applications, as well as provides comprehensive data center infrastructure management solutions. Its Climate Technologies segment offers products and services for the climate control industry, including residential heating and cooling, commercial air conditioning, and commercial and industrial refrigeration. The companys Tools and Storage segment provides a range of professional and do-it-yourself tools, storage solutions, and appliances and components. Emerson Electric Co. operates primarily in the United States, Canada, Asia, Europe, Latin America, the Middle East, and Africa.
DCF Valuation:
Analysts expect Emerson to grow earnings 11.32% per year for the next five years and I've assumed they can continue to grow at 3.00% per year thereafter. Running these numbers through a DCF analysis with a 10% discount rate yields a fair value price of $70.40. This means that at $47.28 the shares are undervalued by 33%.
Read more »
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The Board of Directors at 3M Company (MMM) announced a 35% increase in the dividend last week which is amazing for a company that already boasts a $92B market cap. I last looked at 3M almost a year ago, January 2013, and felt it was a bit overvalued...
- International Business Machines (ibm) Dividend Stock Analysis
I'm finally getting back to posting some stock analyses. For some reason I just didn't have the motivation, I'm not sure if it was a bit of a burn out but I think it was mainly just due to laziness. I don't mind compiling the data...
- Caterpillar Stock Analysis
As mentioned in my previous post, I'm going to try and have 1 stock analysis report for some popular dividend growth stocks come out prior to their latest earnings release this week. Today we'll look at Caterpillar Inc. (CAT). Caterpillar was...
- Air Products & Chemicals Stock Analysis
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- Intel Stock Analysis
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