Is CF Industries Holdings, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for CF Industries Holdings, Inc. moved from fair to very attractive, indicating a significant improvement in its valuation outlook. The company appears undervalued, supported by a P/E ratio of 9, a PEG ratio of 0.42, and an EV to EBITDA ratio of 5.74, all of which suggest that the stock is trading at a discount compared to its earnings growth potential and industry peers.
In comparison to its peers, CF Industries has a lower P/E ratio than The Mosaic Co. at 10.28 and a more favorable EV to EBITDA ratio than FMC Corp. at 11.55. The company's strong return metrics, with a ROCE of 31.21% and ROE of 33.65%, further reinforce its attractive valuation. However, it has underperformed the S&P 500 over the past year, with a return of -2.65% compared to the index's 14.08%, although it has shown significant growth over the past five years at 185.21%.