Is AGCO Corp. overvalued or undervalued?

As of 17 October 2025, AGCO Corp. has moved from a fair to a very expensive valuation grade. The company appears overvalued based on its current financial metrics. Key ratios include 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 has a fair valuation with a P/E ratio of 19.42 and an EV to EBITDA of 10.28, while BorgWarner, Inc. is also categorized as very expensive with an EV to EBITDA of 6.84.
Despite a recent 1-week return of 3.75% compared to the S&P 500's 1.70%, AGCO Corp.'s longer-term performance shows a concerning trend, with a 3-year return of -1.43% versus the S&P 500's 81.19%. This suggests that while there may be short-term fluctuations, the overall valuation indicates that AGCO Corp. is not a compelling investment at its current price.