Is AGCO Corp. overvalued or undervalued?

As of 8 September 2025, AGCO Corp. has moved from a fair to a very expensive valuation grade. The company appears overvalued based on its current financial metrics, with a Price to Book Value of 1.98, an EV to EBIT of 13.23, and an EV to EBITDA of 9.18. In comparison to peers, CNH Industrial NV is fairly valued with a P/E ratio of 19.42, while BorgWarner, Inc. is also very expensive with an EV to EBITDA of 6.84, highlighting AGCO's relatively high valuation.
The company's recent stock performance shows a year-to-date return of 17.93%, which outperforms the S&P 500's return of 12.22% in the same period, but it significantly lags behind the S&P 500 over longer time frames, such as the 3-year and 5-year returns. This suggests that while AGCO has had a strong short-term performance, its long-term valuation may not be justified given the current metrics.