Corteva Valuation in Focus After Sustainable Agriculture Partnership and 19.8% Rally in 2025

• Ever wondered if Corteva is trading at an attractive price, or if you might be stepping into an overvalued story? You're not alone. Valuation is top of mind for many investors right now.
• The stock has climbed 2.9% in the last week and is up 19.8% year-to-date, reflecting renewed market interest and possible optimism around growth potential.
• Recently, Corteva captured attention with its advancements in sustainable agriculture initiatives and strategic partnerships, which have been widely discussed across industry news. These developments are shaping both investor expectations and driving recent stock price momentum.
• According to our latest checks, Corteva's current valuation score stands at 0 out of 6, meaning it's not undervalued by any of the standard metrics we review. We will get into the details of these valuation approaches, plus a smarter way to put a value on the stock, later in the article.

Corteva scores just 0/6 on our valuation checks. See what other red flags we found in the full valuation breakdown.

Approach 1: Corteva Discounted Cash Flow (DCF) Analysis

The Discounted Cash Flow (DCF) model estimates a company's intrinsic value by projecting its future cash flows and discounting them back to today’s value. In Corteva’s case, this model uses recent and projected Free Cash Flow (FCF) figures to gauge what the company is fundamentally worth.

Corteva’s current Free Cash Flow stands at $2.6 billion. Analysts provide estimates for several years ahead, but beyond around 2029, the projections are extrapolated based on expected financial trends. The company’s FCF is forecast to be about $2.4 billion in 2029. Further out, estimates suggest FCF will slightly decrease, but remain above $2 billion annually through 2035. This suggests a generally stable outlook for Corteva’s cash generation capabilities.

Based on this two-stage FCF to equity model, Corteva’s intrinsic value per share is calculated at $63.77. However, the current market price is around 5.8% higher than this estimate, meaning that the stock is slightly overvalued according to this approach.

Result: ABOUT RIGHT

Corteva is fairly valued according to our Discounted Cash Flow (DCF), but this can change at a moment's notice. Track the value in your watchlist or portfolio and be alerted on when to act.

Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Corteva.

Approach 2: Corteva Price vs Earnings

The Price-to-Earnings (PE) ratio is a popular yardstick for valuing profitable companies because it directly links a company’s share price to its net income, helping investors gauge how much they are paying for current and expected profits. A higher PE ratio often suggests that investors expect faster future growth or lower risk. A lower PE may point to lower growth prospects or higher uncertainty.

Corteva currently trades at a PE ratio of 27x, which is a premium to both the chemicals industry average of 23x and the peer group average of 14.3x. This premium signals that investors are placing a higher value on the company’s earnings, likely due to superior growth expectations or perceived resilience compared to competitors.

Beyond simple peer or industry comparisons, Simply Wall St’s proprietary “Fair Ratio” for Corteva is 24.8x. This measure incorporates not just the company’s growth rate, but also its risk profile, profit margins, market cap, and unique industry dynamics. It offers a tailored fair value benchmark. Unlike basic comparisons, the Fair Ratio provides a more nuanced picture by considering attributes specific to Corteva that may justify a valuation premium or discount.

With Corteva’s actual PE ratio just slightly above the Fair Ratio and the difference less than 0.1x, the stock appears fairly valued relative to its growth, profitability, and risk-adjusted profile.

Result: ABOUT RIGHT

PE ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1438 companies where insiders are betting big on explosive growth.

Upgrade Your Decision Making: Choose your Corteva Narrative

Earlier, we mentioned that there is an even better way to understand valuation. Let’s introduce you to Narratives. In investing, a Narrative is a simple way to connect your outlook and research on a company to the numbers behind its value. It is your personal story or thesis about how the business will perform, paired with your assumptions for growth, profits, and risk.

Narratives go beyond the raw data by tying a company’s business trends and catalysts directly to your forecast, and then translating that into a fair value estimate. This approach is easy, flexible, and accessible to everyone through Simply Wall St’s Community page, where millions of investors publish and compare their Narratives for each stock, including Corteva.

Using Narratives helps you take control of your investment decisions. You can see how your fair value estimate compares to the current share price and decide if it is time to buy, hold, or sell based on your unique perspective. Narratives are also automatically updated when new information, such as earnings releases or breaking news, becomes available, so your view always stays relevant.

For example, the most optimistic investors see Corteva’s fair value as high as $92 per share, while the most cautious put it as low as $68. This shows just how different Narratives can be, depending on the story and assumptions you believe.

Do you think there's more to the story for Corteva? Head over to our Community to see what others are saying!

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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