CTVA Fair Value Estimate
$95.5021.2% undervalued
Blended fair value estimate based on DCF, Graham Number, and earnings-based models.
Corteva Inc
Exchange: NYSESector: Basic MaterialsIndustry: Agricultural Inputs
Corteva, Inc. is a global pure-play agriculture company that combines industry-leading innovation, high-touch customer engagement and operational execution to profitably deliver solutions for the world's most pressing agriculture challenges. Corteva generates advantaged market preference through its unique distribution strategy, together with its balanced and globally diverse mix of seed, crop protection, and digital products and services. With some of the most recognized brands in agriculture and a technology pipeline well positioned to drive growth, the company is committed to maximizing productivity for farmers, while working with stakeholders throughout the food system as it fulfills its promise to enrich the lives of those who produce and those who consume, ensuring progress for generations to come.
Current Price
$78.80
-0.24%GoodMoat Value
$95.50
21.2% undervaluedProfile
Valuation (TTM)
Market Cap$52.99B
P/E45.61
EV$50.59B
P/B2.19
Shares Out672.52M
P/Sales2.96
Revenue$17.89B
EV/EBITDA17.85
Corteva Inc (CTVA) Valuation
GoodMoat Analysis
Corteva's valuation appears unfavourable for a value investor, with a high P/E multiple and a minimal margin of safety relative to its fair value estimate. The stock's price is near the GoodMoat Target, and its P/E significantly exceeds both the sector average and its own earnings growth profile. This suggests the market is pricing in significant future improvement not yet reflected in current financials.
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Based on the GoodMoat Investment Framework's valuation assessment, Corteva's current price of $82.03 offers a minimal margin of safety. The GoodMoat Target of $94.47 implies an upside of approximately 15.2%, which falls into the 'Marginal' band (10–20%) and does not meet the 20% threshold typically sought for a favourable valuation. The primary concern is the elevated P/E ratio of 50.7x, which is high for a value-oriented investment. This multiple is difficult to justify given the company's modest financial performance, including a -1.7% YoY revenue decline and a 4.5% Return on Equity. While the 5.1% Free Cash Flow Yield is a positive signal, the P/E far outpaces what would be reasonable for a low-growth, single-digit ROE business, even when compared to sector averages which are typically lower. For a value investor, the combination of a full valuation, minimal margin of safety, and weak current growth metrics makes the case challenging. The stock appears to be pricing in a substantial recovery or operational improvement that has not yet materialized in its reported numbers. Analysis based on data as of 2024-05-15.
CTVA Valuation Metrics
FCF$2.81B
FCF Growth Rate—
EPS Growth (CAGR)9.94%
WACC10.00%
Fair Value Models
Graham Number, PEG-based, and Earnings-based models
View Fair Value →CTVA Valuation & Fair Value Analysis
Corteva Inc (CTVA) valuation analysis using multiple fair value methodologies. GoodMoat calculates a blended fair value target using discounted cash flow (DCF) analysis, the Graham Number, and earnings-based valuation models.
The GoodMoat Fair Value target for Corteva Inc is $95.50. The current stock price is $78.80, suggesting the stock is 21.2% undervalued.
The price-to-earnings (P/E) ratio is 45.61. Price-to-book ratio is 2.19. Price-to-sales ratio is 2.96. Enterprise value to EBITDA is 17.85. PEG ratio is 3.61.
GoodMoat's valuation models include the Graham Number (based on EPS and book value), an earnings-based model (discounted future EPS), and a PEG-adjusted valuation. The three models are averaged to produce a blended fair value estimate. Use these tools alongside the DCF calculator and reverse DCF to form a comprehensive view of Corteva Inc's intrinsic value.