Is Terex Corp. overvalued or undervalued?

As of 7 August 2025, the valuation grade for Terex Corp. has moved from fair to expensive, indicating a shift towards overvaluation. The company appears to be overvalued based on its P/E ratio of 15 compared to a peer average of approximately 19.42 for CNH Industrial, and an EV to EBITDA ratio of 11.02, which is lower than the peer average of 12.72. Additionally, the Price to Book Value stands at 2.01, suggesting that the market is pricing the company at a premium relative to its book value.
In comparison to its peers, Terex Corp. is positioned unfavorably, with a higher P/E ratio than CNH Industrial and other competitors like BorgWarner and AGCO, which have lower valuations. Despite a strong dividend yield of 123.70% and a solid ROE of 13.54%, the overall valuation metrics suggest that Terex Corp. is not a compelling investment at its current price of 53.37. Over the past year, Terex has underperformed the S&P 500, returning -4.44% compared to the index's 17.14%, reinforcing the notion that the stock may be overvalued.