CNH PE Ratio & Valuation,Is CNH Overvalued

CNH Relative Valuation

CNH's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, CNH is overvalued; if below, it's undervalued.

Historical Valuation

CNH Industrial NV (CNH) is now in the Overvalued zone, suggesting that its current forward PE ratio of 20.61 is considered Overvalued compared with the five-year average of 11.65. The fair price of CNH Industrial NV (CNH) is between 4.63 to 7.91 according to relative valuation methord. Compared to the current price of 10.31 USD , CNH Industrial NV is Overvalued By 30.37%.

Relative Value

Fair Zone

4.63-7.91

Current Price：10.31

30.37%

Overvalued

20.61

35.19

EV/EBITDA

CNH Industrial NV. (CNH) has a current EV/EBITDA of 35.19. The 5-year average EV/EBITDA is 17.44. The thresholds are as follows: Strongly Undervalued below 2.90, Undervalued between 2.90 and 10.17, Fairly Valued between 24.71 and 10.17, Overvalued between 24.71 and 31.97, and Strongly Overvalued above 31.97. The current Forward EV/EBITDA of 35.19 falls within the Strongly Overvalued range.

69.64

EV/EBIT

CNH Industrial NV. (CNH) has a current EV/EBIT of 69.64. The 5-year average EV/EBIT is 24.36. The thresholds are as follows: Strongly Undervalued below -5.34, Undervalued between -5.34 and 9.51, Fairly Valued between 39.21 and 9.51, Overvalued between 39.21 and 54.05, and Strongly Overvalued above 54.05. The current Forward EV/EBIT of 69.64 falls within the Strongly Overvalued range.

0.65

CNH Industrial NV. (CNH) has a current PS of 0.65. The 5-year average PS is 0.79. The thresholds are as follows: Strongly Undervalued below 0.53, Undervalued between 0.53 and 0.66, Fairly Valued between 0.91 and 0.66, Overvalued between 0.91 and 1.04, and Strongly Overvalued above 1.04. The current Forward PS of 0.65 falls within the Undervalued range.

3.69

P/OCF

CNH Industrial NV. (CNH) has a current P/OCF of 3.69. The 5-year average P/OCF is 8.55. The thresholds are as follows: Strongly Undervalued below 1.83, Undervalued between 1.83 and 5.19, Fairly Valued between 11.92 and 5.19, Overvalued between 11.92 and 15.28, and Strongly Overvalued above 15.28. The current Forward P/OCF of 3.69 falls within the Undervalued range.

27.04

P/FCF

CNH Industrial NV. (CNH) has a current P/FCF of 27.04. The 5-year average P/FCF is 15.48. The thresholds are as follows: Strongly Undervalued below 2.37, Undervalued between 2.37 and 8.92, Fairly Valued between 22.03 and 8.92, Overvalued between 22.03 and 28.59, and Strongly Overvalued above 28.59. The current Forward P/FCF of 27.04 falls within the Overvalued range.

CNH Industrial NV (CNH) has a current Price-to-Book (P/B) ratio of 1.51. Compared to its 3-year average P/B ratio of 2.07 , the current P/B ratio is approximately -27.12% higher. Relative to its 5-year average P/B ratio of 2.65, the current P/B ratio is about -43.15% higher. CNH Industrial NV (CNH) has a Forward Free Cash Flow (FCF) yield of approximately 17.37%. Compared to its 3-year average FCF yield of 3.03%, the current FCF yield is approximately 472.52% lower. Relative to its 5-year average FCF yield of 7.27% , the current FCF yield is about 138.75% lower.

1.51

P/B

Median3y

2.07

Median5y

2.65

17.37

FCF Yield

Median3y

3.03

Median5y

7.27

Competitors Valuation Multiple

The average P/S ratio for CNH's competitors is 1.06, providing a benchmark for relative valuation. CNH Industrial NV Corp (CNH) exhibits a P/S ratio of 0.65, which is -38.83% above the industry average. Given its robust revenue growth of -5.48%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of CNH decreased by 23.14% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 12.27 to 19.57.

The secondary factor is the Revenue Growth, contributed -5.48%to the performance.

Overall, the performance of CNH in the past 1 year is driven by P/E Change. Which is more unsustainable.

-5.48%

4.65B → 4.40B

Revenue Growth

-77.18%

6.66 → 1.52

Margin Expansion

59.52%

12.27 → 19.57

P/E Change

-23.14%

12.88 → 9.90

Mkt Cap Growth

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Frequently Asked Questions

Is CNH Industrial NV (CNH) currently overvalued or undervalued?

What is CNH Industrial NV (CNH) fair value?

CNH's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average , adjusted by weights. The fair price of CNH Industrial NV (CNH) is between 4.63 to 7.91 according to relative valuation methord.

How does CNH's valuation metrics compare to the industry average?

What is the current P/B ratio for CNH Industrial NV (CNH) as of Jan 08 2026?

As of Jan 08 2026, CNH Industrial NV (CNH) has a P/B ratio of 1.51. This indicates that the market values CNH at 1.51 times its book value.

What is the current FCF Yield for CNH Industrial NV (CNH) as of Jan 08 2026?

As of Jan 08 2026, CNH Industrial NV (CNH) has a FCF Yield of 17.37%. This means that for every dollar of CNH Industrial NV’s market capitalization, the company generates 17.37 cents in free cash flow.

What is the current Forward P/E ratio for CNH Industrial NV (CNH) as of Jan 08 2026?

As of Jan 08 2026, CNH Industrial NV (CNH) has a Forward P/E ratio of 20.61. This means the market is willing to pay $20.61 for every dollar of CNH Industrial NV’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for CNH Industrial NV (CNH) as of Jan 08 2026?

As of Jan 08 2026, CNH Industrial NV (CNH) has a Forward P/S ratio of 0.65. This means the market is valuing CNH at $0.65 for every dollar of expected revenue over the next 12 months.

CNH Valuation