CNH Industrial Valuation

Is 1CNHI undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 1CNHI when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 1CNHI (€10.29) is trading below our estimate of fair value (€12.94)

Significantly Below Fair Value: 1CNHI is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for 1CNHI?

Key metric: As 1CNHI is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 1CNHI. This is calculated by dividing 1CNHI's market cap by their current earnings.
What is 1CNHI's PE Ratio?
PE Ratio7.8x
EarningsUS$1.75b
Market CapUS$13.61b

Price to Earnings Ratio vs Peers

How does 1CNHI's PE Ratio compare to its peers?

The above table shows the PE ratio for 1CNHI vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average20.8x
COM Comer Industries
11.4x6.0%€888.3m
LDO Leonardo
20.3x13.8%€14.3b
PRY Prysmian
30.9x20.8%€17.7b
IP Interpump Group
20.7x12.2%€4.5b
1CNHI CNH Industrial
7.8x-0.2%€13.6b

Price-To-Earnings vs Peers: 1CNHI is good value based on its Price-To-Earnings Ratio (7.8x) compared to the peer average (20.8x).


Price to Earnings Ratio vs Industry

How does 1CNHI's PE Ratio compare vs other companies in the IT Machinery Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No more companies available in this PE range
1CNHI 7.8xIndustry Avg. 17.5xNo. of Companies4PE0816243240+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 1CNHI is good value based on its Price-To-Earnings Ratio (7.8x) compared to the European Machinery industry average (17.5x).


Price to Earnings Ratio vs Fair Ratio

What is 1CNHI's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

1CNHI PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio7.8x
Fair PE Ratio16.5x

Price-To-Earnings vs Fair Ratio: 1CNHI is good value based on its Price-To-Earnings Ratio (7.8x) compared to the estimated Fair Price-To-Earnings Ratio (16.5x).


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst 1CNHI forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€10.45
€12.58
+20.4%
16.4%€16.69€9.27n/a19
Oct ’25€10.01
€12.29
+22.8%
16.6%€16.11€8.95n/a20
Sep ’25€9.23
€12.55
+36.0%
16.5%€16.24€9.02n/a19
Aug ’25€9.48
€13.44
+41.9%
13.5%€16.68€9.27n/a19
Jul ’25€9.14
€14.14
+54.6%
11.5%€16.85€11.24n/a19
Jun ’25€9.58
€13.75
+43.6%
11.3%€16.41€11.06n/a18
May ’25€10.67
€14.32
+34.2%
9.7%€16.90€12.20n/a18
Apr ’25€11.95
€14.02
+17.4%
9.7%€16.48€11.63n/a18
Mar ’25€11.05
€13.98
+26.6%
10.5%€17.58€11.75n/a18
Feb ’25€11.18
€13.76
+23.1%
19.2%€23.00€10.58n/a19
Jan ’25€11.08
€14.52
+31.1%
19.6%€22.93€10.55n/a16
Dec ’24€10.22
€14.55
+42.3%
19.8%€22.99€10.57n/a15
Nov ’24€10.30
€16.50
+60.2%
24.0%€29.27€13.22€10.4514
Oct ’24€11.54
€17.14
+48.6%
21.2%€29.51€13.33€10.0115
Sep ’24€12.77
€16.97
+32.9%
19.5%€28.41€14.21€9.2316
Aug ’24€13.22
€17.11
+29.5%
19.1%€28.19€14.10€9.4815
Jul ’24€13.21
€17.81
+34.9%
18.1%€28.52€14.47€9.1415
Jun ’24€12.25
€18.03
+47.3%
17.5%€28.81€14.62€9.5816
May ’24€12.75
€17.75
+39.2%
17.0%€28.28€14.69€10.6717
Apr ’24€14.08
€17.99
+27.7%
17.1%€28.58€14.84€11.9517
Mar ’24€15.46
€18.38
+18.9%
17.1%€29.22€15.18€11.0517
Feb ’24€16.27
€17.76
+9.2%
17.5%€28.53€14.16€11.1817
Jan ’24€14.97
€16.82
+12.4%
10.8%€19.78€13.36€11.0816
Dec ’23€15.65
€16.20
+3.6%
9.4%€18.29€13.48€10.2215
Nov ’23€13.04
€15.79
+21.1%
10.6%€18.25€12.31€10.3014

Analyst Forecast: Target price is less than 20% higher than the current share price.


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