Is Terex Corp. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Terex Corp. has moved from attractive to expensive, indicating a shift towards overvaluation. The company appears overvalued based on key metrics, including a P/E ratio of 15, an EV to EBITDA ratio of 11.02, and a Price to Book Value of 2.01. In comparison, peers such as CNH Industrial NV have a P/E of 19.42, while BorgWarner, Inc. is valued at 11.57, highlighting that Terex Corp. is trading at a premium relative to some competitors.
Despite a strong dividend yield of 123.70% and a solid ROE of 13.54%, the overall valuation suggests that investors may be paying too much for the stock at its current price of 53.01. Notably, while Terex Corp. has outperformed the S&P 500 in the 1-week and 5-year periods, it has underperformed over the 1-year timeframe, which may reinforce concerns about its current valuation.