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What Is AGCO Corporation's (NYSE:AGCO) Share Price Doing?

Simply Wall St · 4d ago

While AGCO Corporation (NYSE:AGCO) might not have the largest market cap around , it saw significant share price movement during recent months on the NYSE, rising to highs of US$111 and falling to the lows of US$100. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether AGCO's current trading price of US$106 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at AGCO’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

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Is AGCO Still Cheap?

According to our price multiple model, which makes a comparison between the company's price-to-earnings ratio and the industry average, the stock price seems to be justfied. We’ve used the price-to-earnings ratio in this instance because there’s not enough visibility to forecast its cash flows. The stock’s ratio of 21.04x is currently trading slightly below its industry peers’ ratio of 25.11x, which means if you buy AGCO today, you’d be paying a reasonable price for it. And if you believe AGCO should be trading in this range, then there isn’t much room for the share price to grow beyond the levels of other industry peers over the long-term. Although, there may be an opportunity to buy in the future. This is because AGCO’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, the company’s shares will likely fall by more than the rest of the market, providing a prime buying opportunity.

See our latest analysis for AGCO

What kind of growth will AGCO generate?

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NYSE:AGCO Earnings and Revenue Growth January 5th 2026

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. With profit expected to more than double over the next couple of years, the future seems bright for AGCO. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.

What This Means For You

Are you a shareholder? AGCO’s optimistic future growth appears to have been factored into the current share price, with shares trading around industry price multiples. However, there are also other important factors which we haven’t considered today, such as the financial strength of the company. Have these factors changed since the last time you looked at AGCO? Will you have enough confidence to invest in the company should the price drop below the industry PE ratio?

Are you a potential investor? If you’ve been keeping an eye on AGCO, now may not be the most optimal time to buy, given it is trading around industry price multiples. However, the optimistic forecast is encouraging for AGCO, which means it’s worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

So while earnings quality is important, it's equally important to consider the risks facing AGCO at this point in time. For example - AGCO has 3 warning signs we think you should be aware of.

If you are no longer interested in AGCO, you can use our free platform to see our list of over 50 other stocks with a high growth potential.