# Emerson Electric (EMR) Forecast Calculator

Interactive five-year financial forecast and DCF for Emerson Electric. Adjust revenue growth, margins, capex, and WACC to update revenue, free cash flow, and enterprise value.

- Canonical: https://finamodel.com/companies/emerson-electric/forecast
- Industry: Industrials
- Forecast start year: 2026

## Historical data

| Year | Revenue | Free cash flow | EBITDA | Net income |
|---:|---:|---:|---:|---:|
| 2021 | 18372000000 | 2412000000 | 3681000000 | 2306000000 |
| 2022 | 16785000000 | 2545000000 | 3189000000 | 1965000000 |
| 2023 | 12932000000 | 3171000000 | 2524000000 | 2303000000 |
| 2024 | 13804000000 | 2623000000 | 3274000000 | 3231000000 |
| 2025 | 15165000000 | 274000000 | 3954000000 | 13219000000 |

## Frequently asked questions

### How has Emerson Electric's business model transformed recently?

Emerson Electric has transformed into a pure-play industrial automation and software company, shifting away from traditional manufacturing. This transition focuses on higher-margin software, intelligent devices, and recurring revenue streams, leading to an increasingly asset-light business model.

### What are Emerson Electric's primary revenue segments and key geographic markets?

Emerson Electric's main revenue segments include Final Control, Measurement & Analytical, Control Systems & Software, and Test & Measurement, among others. Geographically, the Americas contribute approximately 45% of revenue, followed by Asia/Middle East/Africa at 35%, and Europe at 20%.

### What is Emerson Electric's capital expenditure strategy, reflecting its business model?

Emerson Electric maintains an asset-light business model, with capital expenditure typically ranging from 2.5-3.5% of revenue. Capex is primarily allocated towards growth initiatives (60%) and consolidating its global manufacturing footprint, alongside expanding software R&D centers.

### How does Emerson Electric manage its working capital, and what is its profile?

Emerson Electric maintains a positive net working capital profile, indicating the company requires working capital to fund its growth. Key metrics include Days Sales Outstanding (DSO) of 60-70 days, Days Inventory Outstanding (DIO) of 70-85 days, and Days Payable Outstanding (DPO) of 50-60 days.

### What are some of the key financial assumptions used in the Emerson Electric forecast model?

The financial model for Emerson Electric incorporates key assumptions such as revenue growth, cost of goods sold as a percentage of revenue, and selling, general, and administrative expenses as a percentage of revenue. Other important inputs include R&D, depreciation and amortization, tax rate, capital expenditure, and net working capital as percentages of revenue.

### Is there a downloadable financial model available for Emerson Electric, and what is its primary use?

Yes, a downloadable Excel model is available for Emerson Electric, offering a comprehensive equity valuation and scenario planning tool. Its primary purpose is to assess the financial impact of the company's recent portfolio transformation into an industrial automation and software pure-play.