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 is currently considered overvalued based on its P/E ratio of 15, which is significantly lower than the peer average of 23.63 for Terex Corp., and an EV to EBITDA ratio of 11.02, which also falls short of the industry benchmark. Additionally, the Price to Book Value stands at 2.01, suggesting that the stock may be priced higher than its actual book value.
In comparison to peers, CNH Industrial NV has a fair valuation with a P/E of 19.42, while BorgWarner, Inc. is categorized as very expensive with a P/E of 11.57. Notably, Terex Corp. has shown strong returns over the past five years, with a gain of 116.99%, outperforming the S&P 500's return of 91.29% during the same period. However, its one-year return of -5.93% significantly lags behind the S&P 500's 14.08%, reinforcing the notion that the stock may be overvalued at its current price.