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 perceived value. The company appears to be 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 relative to its earnings and growth potential.
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 Scotts Miracle-Gro Co. at 11.59, reinforcing its attractive valuation. Despite recent underperformance against the S&P 500, with a year-to-date return of -2.12% compared to the index's 13.30%, the long-term outlook remains positive, as evidenced by a remarkable 185.21% return over the past five years.