AGCO Corporation

AGCO ·Industrials, Farm & Heavy Construction Machinery, United States
Valuation › AI Valuation

AI Valuation

AI-generated fair value estimate for this company.

AI Fair Value $86.41
Market Price $116.25
Overvalued By 34.5%

Method: 10-year FCF DCF: $550M normalized annual FCF (mid-cycle average versus the depressed $330M TTM figure and the $740M FY2025 figure, reflecting the current agricultural-equipment downturn); 3% growth years 1-5, 2% years 6-10; 9% discount rate; 2% terminal growth; $2,315M net debt; 70.03M shares outstanding.

Reasoning: AGCO is a cyclical industrial manufacturer of farm equipment, so free cash flow is normalized to a mid-cycle level rather than the currently depressed trough, using modest long-term growth consistent with a mature, cyclical industry.