Is Corteva, Inc. overvalued or undervalued?

As of 7 May 2025, the valuation grade for Corteva, Inc. has moved from very expensive to expensive, indicating a shift in perception regarding its valuation. The company is currently considered overvalued. Key ratios include a P/E ratio of 37, an EV to EBITDA of 14.55, and a PEG ratio of 2.48, which suggest that the stock may not be justified at its current price levels.
In comparison to its peers, Corteva's P/E ratio of 37 is higher than the industry average, with a notable peer, which has a P/E of approximately 38.67, indicating that the market may be pricing in excessive growth expectations. Additionally, the company's return on equity (ROE) stands at 5.39%, which is relatively low compared to industry standards. Recent stock performance shows that Corteva has outperformed the S&P 500 over the past year, with a return of 40.67% compared to the S&P's 10.26%, but this does not necessarily support a higher valuation given the current ratios.