Is FMC Corp. overvalued or undervalued?

As of 23 May 2025, the valuation grade for FMC Corp. moved from expensive to very attractive, indicating a significant shift in its perceived value. The company appears undervalued with a P/E ratio of 16, an EV to EBITDA ratio of 12.67, and a Price to Book Value of 1.80, which are favorable compared to some peers. For instance, CF Industries Holdings, Inc. has a P/E of 8.64, while The Mosaic Co. stands at 10.28, suggesting that FMC Corp. may offer better value relative to its earnings potential.
Despite the attractive valuation metrics, FMC Corp. has underperformed against the S&P 500, with a year-to-date return of -23.45% compared to the index's 12.22%. This stark contrast in returns over multiple periods, including a -41.40% return over the past year versus the S&P 500's 17.14%, reinforces the notion that while the stock may be undervalued, it is currently facing significant market challenges.