Is AGCO Corp. overvalued or undervalued?

As of 6 February 2025, AGCO Corp. has moved from a valuation grade of very expensive to risky, indicating a significant shift in its market perception. The company is currently considered overvalued. Key ratios include a Price to Book Value of 1.98, an EV to EBITDA of 9.18, and a ROCE of 12.11%. In comparison to peers, CNH Industrial NV has a P/E of 15.71 and an EV to EBITDA of 9.85, while BWX Technologies, Inc. shows a P/E of 67.35 and an EV to EBITDA of 45.96, highlighting AGCO's relative underperformance in profitability metrics.
Despite a high dividend yield of 115.33%, AGCO's negative ROE of -0.88% raises concerns about its financial health. Recent stock performance shows AGCO underperformed the S&P 500 over the past year, with a return of -0.45% compared to the index's 10.26%, reinforcing the notion that the stock may be overvalued in the current market environment.