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, indicating a shift in its perceived value. 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, but higher than AGCO Corp. at 14.36, suggesting it is positioned moderately within its industry.
Despite the fair valuation, CNH Industrial has underperformed relative to the S&P 500 over multiple periods, with a year-to-date return of -7.86% compared to the S&P 500's 13.30%. This trend continues in the 1-year and 3-year returns, where CNH Industrial has lagged significantly behind the benchmark. Overall, while the company is fairly valued, its recent performance raises concerns about future growth potential.