Is The Mosaic Co. overvalued or undervalued?

As of 1 May 2025, The Mosaic Co. has moved from an attractive to an expensive valuation grade. The company is currently considered overvalued based on its financial metrics. The P/E ratio stands at 24, which is significantly higher than its peer CF Industries Holdings, Inc. at 10.39 and FMC Corp. at 15.22. Additionally, the EV to EBITDA ratio for The Mosaic Co. is 6.83, which is more favorable than its peers, but still indicates a premium valuation.
In terms of key ratios, the Price to Book Value is at 0.97, and the ROE is relatively low at 4.01%. The dividend yield is exceptionally high at 249.79%, which may attract income-focused investors but does not offset the overall valuation concerns. The stock has outperformed the S&P 500 year-to-date with a return of 46.62% compared to the index's 2.44%, but this strong performance does not negate the fact that the current valuation appears excessive relative to its peers.