Latest Ratios: P/E Ratio 27.5x · EV/EBITDA 11.4x · ROE 16.9%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $8.0B | $7.8B | $7.0B | $9.1B | $10.4B | $8.8B | $7.8B | $5.9B | $4.4B | $5.7B | $4.7B |
| Enterprise Value | $9.8B | $9.6B | $9.1B | $10.0B | $11.2B | $9.5B | $8.4B | $7.0B | $5.6B | $7.1B | $6.0B |
| P/E Ratio → | 27.47 | 10.70 | — | 7.76 | 11.67 | 9.79 | 18.25 | 74.28 | 15.55 | 30.79 | 29.52 |
| P/S Ratio | 0.79 | 0.77 | 0.60 | 0.63 | 0.82 | 0.79 | 0.85 | 0.66 | 0.47 | 0.69 | 0.64 |
| P/B Ratio | 1.80 | 1.70 | 1.73 | 1.95 | 2.68 | 2.55 | 2.58 | 2.05 | 1.48 | 1.85 | 1.67 |
| P/FCF | 27.16 | 10.50 | 23.54 | 15.54 | 23.09 | 21.26 | 12.44 | 14.08 | 11.30 | 15.33 | 28.05 |
| P/OCF | 8.09 | 7.87 | 10.12 | 8.24 | 12.39 | 12.86 | 8.69 | 8.55 | 7.45 | 9.92 | 12.79 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 0.95 | 0.78 | 0.70 | 0.88 | 0.85 | 0.92 | 0.78 | 0.60 | 0.85 | 0.81 |
| EV / EBITDA | 11.44 | 9.35 | 6.99 | 4.96 | 7.03 | 7.35 | 9.31 | 8.70 | 6.94 | 10.00 | 10.44 |
| EV / EBIT | 14.05 | 14.36 | — | 7.15 | 9.70 | 9.82 | 14.35 | 24.19 | 13.46 | 21.06 | 22.34 |
| EV / FCF | — | 12.96 | 30.84 | 17.14 | 24.86 | 23.05 | 13.44 | 16.60 | 14.26 | 18.93 | 35.57 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 24.8% | 24.8% | 24.4% | 25.9% | 23.4% | 22.5% | 21.8% | 21.3% | 20.7% | 20.6% | 19.7% |
| Operating Margin | 6.9% | 6.9% | 8.4% | 12.0% | 10.4% | 9.1% | 6.9% | 5.9% | 5.5% | 5.2% | 4.0% |
| Net Profit Margin | 7.2% | 7.2% | -3.6% | 8.1% | 7.0% | 8.1% | 4.7% | 1.4% | 3.1% | 2.2% | 2.2% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 16.9% | 16.9% | -9.8% | 27.4% | 24.3% | 27.8% | 14.4% | 4.2% | 9.4% | 6.3% | 5.6% |
| ROA | 6.3% | 6.3% | -3.8% | 10.9% | 9.2% | 10.1% | 5.3% | 1.6% | 3.7% | 2.5% | 2.3% |
| ROIC | 8.3% | 8.3% | 12.4% | 25.3% | 22.4% | 19.4% | 12.5% | 9.9% | 9.0% | 7.5% | 5.8% |
| ROCE | 9.0% | 9.0% | 13.5% | 26.5% | 22.5% | 18.7% | 12.6% | 11.0% | 10.2% | 8.3% | 6.4% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.59 | 0.59 | 0.69 | 0.33 | 0.41 | 0.47 | 0.58 | 0.51 | 0.50 | 0.55 | 0.60 |
| Debt / EBITDA | 2.62 | 2.62 | 2.12 | 0.75 | 1.00 | 1.25 | 1.92 | 1.85 | 1.84 | 2.42 | 2.95 |
| Net Debt / Equity | — | 0.40 | 0.54 | 0.20 | 0.21 | 0.21 | 0.21 | 0.37 | 0.39 | 0.43 | 0.45 |
| Net Debt / EBITDA | 1.78 | 1.78 | 1.65 | 0.46 | 0.50 | 0.57 | 0.70 | 1.32 | 1.44 | 1.90 | 2.21 |
| Debt / FCF | — | 2.46 | 7.30 | 1.59 | 1.78 | 1.79 | 1.01 | 2.52 | 2.95 | 3.60 | 7.51 |
| Interest Coverage | 10.07 | 10.07 | -1.71 | 20.38 | 25.07 | 38.18 | 23.57 | 10.07 | 7.48 | 6.45 | 4.23 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.39 | 1.39 | 1.34 | 1.46 | 1.40 | 1.45 | 1.30 | 1.29 | 1.28 | 1.37 | 1.48 |
| Quick Ratio | 0.67 | 0.67 | 0.63 | 0.67 | 0.62 | 0.70 | 0.71 | 0.57 | 0.59 | 0.66 | 0.77 |
| Cash Ratio | 0.23 | 0.23 | 0.16 | 0.14 | 0.19 | 0.26 | 0.33 | 0.15 | 0.12 | 0.14 | 0.20 |
| Asset Turnover | — | 0.85 | 1.04 | 1.26 | 1.25 | 1.21 | 1.08 | 1.17 | 1.23 | 1.04 | 1.03 |
| Inventory Turnover | 2.80 | 2.80 | 3.23 | 3.10 | 3.04 | 3.33 | 3.63 | 3.42 | 3.89 | 3.52 | 3.93 |
| Days Sales Outstanding | — | 39.08 | 39.67 | 40.65 | 35.24 | 32.49 | 34.15 | 32.32 | 34.36 | 44.79 | 43.86 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 1.1% | 1.1% | 3.9% | 5.0% | 3.9% | 4.1% | 0.6% | 0.8% | 1.1% | 0.8% | 0.9% |
| Payout Ratio | 11.9% | 11.9% | — | 39.0% | 45.4% | 40.0% | 11.2% | 38.3% | 16.5% | 23.9% | 26.5% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 3.6% | 9.3% | — | 12.9% | 8.6% | 10.2% | 5.5% | 1.3% | 6.4% | 3.2% | 3.4% |
| FCF Yield | 3.7% | 9.5% | 4.2% | 6.4% | 4.3% | 4.7% | 8.0% | 7.1% | 8.8% | 6.5% | 3.6% |
| Buyback Yield | 3.1% | 3.2% | 0.3% | 0.6% | 0.2% | 1.5% | 0.7% | 2.2% | 4.2% | 0.1% | 4.5% |
| Total Shareholder Yield | 4.2% | 4.3% | 4.2% | 5.6% | 4.1% | 5.6% | 1.3% | 3.0% | 5.2% | 0.9% | 5.4% |
| Shares Outstanding | — | $75M | $75M | $75M | $75M | $76M | $76M | $77M | $80M | $80M | $82M |
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying AGCO stock.
AGCO Corporation's current P/E ratio is 27.5x. The historical average is 20.0x. This places it at the 80th percentile of its historical range.
AGCO Corporation's current EV/EBITDA is 11.4x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 8.0x.
AGCO Corporation's return on equity (ROE) is 16.9%. The historical average is 10.0%.
Based on historical data, AGCO Corporation is trading at a P/E of 27.5x. This is at the 80th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
AGCO Corporation's current dividend yield is 1.05% with a payout ratio of 11.9%.
AGCO Corporation has 24.8% gross margin and 6.9% operating margin.
AGCO Corporation's Debt/EBITDA ratio is 2.6x, indicating moderate leverage. A ratio between 2-4x is manageable but warrants monitoring.
Key Metrics
Top Statement Risk
Cyclical agricultural demand contraction
Metrics are mathematically derived from official filings.
Discount to Peers Reflects Cyclical Trough
Based on reported figures, AGCO trades at 11.30x trailing P/E and 9.55x EV/EBITDA, a steep discount to Deere's 35.85x and 22.05x, suggesting the market prices AGCO as a cyclical earnings trough rather than a structural compounder. The forward P/E of 19.79x implies investors expect earnings to fall further before recovering. Investors should monitor whether the PEG of 0.98 reflects genuine undervaluation or simply discounts continued margin pressure. The lower multiple versus Deere appears tied to AGCO's heavier European exposure and smaller captive finance arm, which the market may view as less resilient through downturns. A forward multiple expansion relative to trailing would require evidence that revenue deleverage has stabilized.
The gap between trailing and forward P/E suggests analysts expect near-term earnings compression before any normalization. Compared with its own recent history, the current trailing multiple looks depressed alongside a quarterly EPS beat, which may indicate the market is discounting the sustainability of cost-out gains. The P/S of 0.79 and P/FCF of 10.78 remain modest, though these metrics are sensitive to the volatile working capital swings visible in recent quarters.
Margin Stability Masks Volume Deleverage
As reported in financial statements, AGCO's gross margin held near 24.8% to 25.0% in recent quarters while operating margin fell to 5.1% in 2026Q3 from 9.5% in 2025Q4. This divergence suggests pricing and mix are protecting gross profit while fixed overhead absorbs the revenue decline. Investors should treat the stable gross margin as a partial offset rather than evidence of earnings resilience. The compression in operating margin indicates that SG&A and fixed costs are not scaling down with volume.
The stability of gross margin relative to its own 2024 range, which dipped to 23.0% in 2024Q3, suggests pricing discipline is intact despite falling volumes. However, operating margin volatility from 3.0% to 9.5% over the ten quarters shows earnings are highly sensitive to absorption and cost timing. Net margin figures are distorted by non-operating and one-time items, with reported net margins swinging from -11.3% to 12.3%, so operating margin is the more reliable indicator of underlying earning power.
Returns Compressed Below Prior Peaks
Based on AGCO's reported quarterly figures, ROE has fallen to 1.2% in 2026Q3 from a peak of 7.3% in 2025Q2, while ROIC sits at 1.6% versus Deere's 7.8%. This decline suggests the company is not currently compounding returns on invested capital. Investors should monitor whether the goodwill-heavy asset base continues to dilute returns. The gap to Deere appears structural in part, reflecting lower margins and a larger capital base tied to acquisitions.
The collapse in ROE from mid-2025 levels reflects both lower net income and an equity base that has grown through retained earnings, which dilutes per-share return. ROIC trending between 0.7% and 3.1% across ten quarters indicates returns have been persistently below any reasonable cost of capital estimate. The acquisition-heavy balance sheet, with goodwill rising toward $2.4B during 2024, means a substantial share of invested capital earns returns only through acquired intangibles, which warrants further investigation into impairment risk.
Leverage Swings Tied to Financing Timing
According to recent SEC filings, AGCO's debt-to-equity ratio moved from 0.93 in 2024Q3 to 0.03 in 2026Q1 and rebounded to 0.64 in 2026Q3, while interest coverage swung between negative and 23.24x. This volatility suggests leverage is driven by short-term borrowing timing rather than a stable capital structure policy. Investors should treat the low 2026Q1 reading with caution, as the subsequent rebound indicates it may not reflect durable deleveraging. Debt service comfort appears to fluctuate materially quarter to quarter.
The D/EBITDA ratio ranging from 0.47 to 33.87 shows that the denominator, EBITDA, is itself unstable, making leverage ratios difficult to interpret in isolation. Negative interest coverage in 2024Q2 and 2024Q4 reflects periods when operating earnings did not cover interest expense, which warrants monitoring. The current 5.63x coverage in 2026Q3 is adequate but sits well below the 2025Q3 level, suggesting debt service comfort has narrowed as earnings declined.
Working Capital Cycle Drives Cash Volatility
Based on AGCO's reported figures, the cash conversion cycle ranged from 118 to 167 days across recent quarters, with inventory days of 122 to 165 representing the dominant component. This pattern suggests working capital timing, not operating efficiency alone, shapes quarterly cash outcomes. Investors should monitor whether elevated dealer and inventory levels persist as demand softens. The cycle appears structurally long for an equipment manufacturer.
The DIO swing from 122 days in 2025Q4 to 165 days in 2025Q1 suggests inventory management is reactive to demand timing rather than steadily optimized. DPO ranging from 37 to 56 days indicates supplier financing provides only partial offset to the long inventory cycle. Asset turnover of 0.18 to 0.24 is low in absolute terms, consistent with a capital-intensive manufacturer, and signals limited revenue generated per dollar of assets.
Cheap Multiple May Hide Cyclical Earnings Risk
The most commonly misapplied ratio for AGCO is the trailing P/E, which can look attractive at 11.30x when earnings are cyclically depressed or inflated by one-time items. Based on reported figures, EPS has swung from a loss to a $4.21 peak within the same ten-quarter window. Investors should instead anchor on normalized through-cycle earnings and EV/EBITDA adjusted for working capital. Relying on trailing P/E risks mistaking a cyclical trough for value.
Because reported EPS is distorted by non-operating items and volatile working capital, trailing P/E conveys little about sustainable earning power. A mid-cycle EBITDA estimate, normalized for the working capital release that inflated recent cash flows, would give a more defensible valuation base. The gap between the trailing and forward multiple suggests the market is already anticipating earnings compression, so the apparent discount may reflect correct pricing rather than mispricing.