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, with a P/E ratio of 16, a Price to Book Value of 2.22, and an EV to EBITDA of 9.84. In comparison to peers, CNH Industrial's P/E ratio is lower than BorgWarner, Inc. at 11.57 and AGCO Corp. at 14.36, indicating a more favorable valuation relative to these competitors.
Despite its fair valuation, CNH Industrial has underperformed relative to 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 the longer term, as the company has a 3-year return of -15.19% versus the S&P 500's 81.19%. Overall, while the company is currently fairly valued, its recent performance suggests potential challenges ahead.