On June 02, 2026, AGCO Corp AGCO shares rose 5.7% to $118.40, continuing a strong upward trend with a year-to-date increase of 14.0%. The stock has fluctuated between a 52-week high of $143.78 and a low of $97.53.
- GF Valueâ„¢ verdict: Current price is $118.40, compared to GF Valueâ„¢ of $89.35, indicating the stock is 32.5% overvalued.
- GF Scoreâ„¢: 77/100, suggesting the stock is above average in terms of potential long-term performance.
- Most notable signal: Insiders have sold $52.1 million worth of stock in the last three months, with no buying activity reported.
Is AGCO Overvalued or Undervalued?
According to the GF Valueâ„¢, AGCO is significantly overvalued, with a current price of $118.40 compared to a calculated fair value of $89.35. This indicates a substantial margin of safety is lacking for potential investors. The 32.5% overvaluation suggests that the stock's market price may not accurately reflect its intrinsic value, which raises concerns about future price corrections. GF Valueâ„¢ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates.
The significant overvaluation poses a risk for investors, as it implies that market sentiment may be overly optimistic about AGCO's future performance or financial health. The lack of a margin of safety may deter risk-averse investors from taking a position in AGCO at this time.
How Does AGCO's Valuation Compare to Its History?
| Metric | Current | Historical |
|---|---|---|
| P/E (TTM) | 11.4x | 11.2x |
| Forward P/E | 19.8x | N/A |
AGCO's current P/E ratio of 11.4x is slightly above its 5-year median of 11.2x, indicating that the stock is trading at a premium compared to its historical valuation metrics. This P/E analysis supports the GF Valueâ„¢ verdict that AGCO is overvalued, as the higher P/E ratio suggests that investors are currently paying more for each dollar of earnings than they have in the past.
What Does AGCO's GF Scoreâ„¢ Tell Us?
The GF Scoreâ„¢ ranks stocks from 0 to 100 based on five key aspects: Financial Strength, Profitability, Growth, Valuation, and Momentum. Stocks with higher GF Scoreâ„¢ values have been found to generate higher long-term returns (backtested 2006-2021).
| Metric | Rating |
|---|---|
| GF Scoreâ„¢ | 77 |
| Financial Strength | 6/10 |
| Profitability | 7/10 |
| Growth | 5/10 |
| Valuation | 5/10 |
| Momentum | 8/10 |
AGCO's GF Scoreâ„¢ of 77/100 indicates a solid position in the market, particularly highlighted by its momentum rank of 8/10, suggesting strong recent performance trends. However, the valuation rank of 5/10 points to concerns about current pricing levels. The financial strength and profitability ranks of 6/10 and 7/10, respectively, indicate a stable financial foundation, but the growth rank of 5/10 suggests that there may be limitations in expanding its earnings in the near future.
What Are Insiders Doing with AGCO Stock?
Recent insider activity at AGCO indicates a lack of confidence among executives, as insiders have sold $52.1 million worth of stock over the last three months without any buying activity. This pattern may suggest that those closest to the company do not foresee substantial growth in the near term, which can be a red flag for outside investors. The absence of insider buying further emphasizes the potential overvaluation of the stock.
What This Means for Investors
Based on the GF Valueâ„¢ assessment, AGCO Corp AGCO appears to be overvalued at the current price of $118.40, especially when compared to the estimated fair value of $89.35. Potential investors may want to consider the risks associated with entering a position at this elevated price point.
For the complete analysis, visit the AGCO Corp AGCO stock page. You can also explore the GF Valueâ„¢ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions
What is AGCO's GF Scoreâ„¢?
AGCO's GF Scoreâ„¢ is 77/100, indicating that the stock has above-average potential for long-term performance based on key financial metrics.
Is AGCO overvalued or undervalued?
AGCO is currently overvalued, with a GF Valueâ„¢ of $89.35 compared to its market price of $118.40, reflecting a 32.5% overvaluation.
What is AGCO's P/E ratio?
AGCO's P/E (TTM) ratio is 11.4x, which is slightly above its historical median of 11.2x, further supporting the conclusion of overvaluation.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
