CNH Industrial Valuation

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

Valuation Score

3/6

Valuation Score 3/6

  • 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 CNHI when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: CNHI ($12.96) is trading above our estimate of fair value ($11.83)

Significantly Below Fair Value: CNHI is trading above our estimate of fair value.


Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

CNHI key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.6x
Enterprise Value/EBITDA12.1x
PEG Ratio-2x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for CNHI vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average18.2x
TTC Toro
33.3x13.6%US$9.4b
AGCO AGCO
7.8x-5.4%US$9.1b
ALG Alamo Group
20.1x8.8%US$2.7b
DE Deere
11.5x-8.1%US$113.9b
CNHI CNH Industrial
6.8x-3.5%US$16.1b

Price-To-Earnings vs Peers: CNHI is good value based on its Price-To-Earnings Ratio (6.8x) compared to the peer average (18.2x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a10.7%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a10.7%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: CNHI is good value based on its Price-To-Earnings Ratio (6.8x) compared to the US Machinery industry average (24.2x).


Price to Earnings Ratio vs Fair Ratio

What is CNHI'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.

CNHI PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio6.8x
Fair PE Ratio17.3x

Price-To-Earnings vs Fair Ratio: CNHI is good value based on its Price-To-Earnings Ratio (6.8x) compared to the estimated Fair Price-To-Earnings Ratio (17.3x).


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 CNHI forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$12.96
US$15.32
+18.2%
9.7%US$18.00US$12.70n/a18
Mar ’25US$12.06
US$15.12
+25.4%
10.5%US$19.00US$12.70n/a18
Feb ’25US$12.30
US$14.96
+21.6%
19.2%US$25.00US$11.50n/a19
Jan ’25US$12.18
US$15.83
+30.0%
19.6%US$25.00US$11.50n/a16
Dec ’24US$11.18
US$15.82
+41.5%
19.8%US$25.00US$11.50n/a15
Nov ’24US$11.02
US$17.47
+58.5%
24.0%US$31.00US$14.00n/a14
Oct ’24US$12.10
US$18.01
+48.8%
21.2%US$31.00US$14.00n/a15
Sep ’24US$13.83
US$18.51
+33.9%
19.5%US$31.00US$15.50n/a16
Aug ’24US$14.56
US$18.82
+29.3%
19.1%US$31.00US$15.50n/a15
Jul ’24US$14.40
US$19.36
+34.4%
18.1%US$31.00US$15.73n/a15
Jun ’24US$13.14
US$19.40
+47.6%
17.5%US$31.00US$15.73n/a16
May ’24US$14.10
US$19.45
+37.9%
17.0%US$31.00US$16.10n/a17
Apr ’24US$15.27
US$19.51
+27.8%
17.1%US$31.00US$16.10n/a17
Mar ’24US$16.49
US$19.50
+18.2%
17.1%US$31.00US$16.10US$12.0617
Feb ’24US$17.90
US$19.30
+7.8%
17.5%US$31.00US$15.39US$12.3017
Jan ’24US$16.06
US$17.86
+11.2%
10.8%US$21.00US$14.19US$12.1816
Dec ’23US$16.36
US$17.06
+4.3%
9.4%US$19.25US$14.19US$11.1815
Nov ’23US$12.88
US$15.57
+20.9%
10.6%US$18.00US$12.14US$11.0214
Oct ’23US$11.17
US$16.29
+45.9%
13.9%US$23.00US$13.60US$12.1014
Sep ’23US$11.97
US$16.38
+36.8%
14.0%US$23.00US$13.60US$13.8313
Aug ’23US$12.45
US$15.68
+26.0%
11.5%US$18.00US$12.48US$14.5613
Jul ’23US$11.66
US$18.39
+57.8%
10.4%US$21.00US$13.30US$14.4013
Jun ’23US$14.77
US$18.47
+25.1%
10.4%US$21.00US$13.30US$13.1413
May ’23US$14.19
US$18.83
+32.7%
11.2%US$21.00US$12.80US$14.1013
Apr ’23US$15.80
US$19.07
+20.7%
12.0%US$22.00US$12.80US$15.2713
Mar ’23US$13.87
US$19.00
+37.0%
11.6%US$22.00US$12.80US$16.4913

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


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