Is CNH Industrial NV overvalued or undervalued?

As of 17 October 2025, the valuation grade for CNH Industrial NV has moved from attractive to fair. The company appears to be fairly valued based on its current metrics. Key valuation ratios include a P/E ratio of 16, an EV to EBITDA of 9.84, and a Price to Book Value of 2.22. In comparison to peers, CNH Industrial's P/E ratio of 19.42 is notably higher than BorgWarner, Inc. at 11.57 and AGCO Corp. at 14.36, indicating that it is priced at a premium relative to some competitors.
In terms of recent performance, CNH Industrial has underperformed against the S&P 500, with a year-to-date return of -7.86% compared to the S&P 500's 13.30%. This trend continues over longer periods, with a 3-year return of -15.19% versus the S&P 500's 81.19%, suggesting that while the stock is currently fairly valued, its performance relative to the market has been disappointing.