CF Industries Holdings, Inc. (CF) Fair Value & PE Analysis
Agricultural Inputs · NYSE
Current Price
$109.48
PE Ratio (TTM)
9.6x
Intrinsic Value
$97.28
-12.5% margin of safety
What Is CF Industries Holdings, Inc.'s Fair Value?
As of 2026-06-12, applying a 10.0x earnings multiple to CF Industries Holdings, Inc.'s (CF) earnings per share of $11.4 yields a fair value estimate of $97.28 per share, versus a market price of $109.48.
Fair value from earnings multiples is sensitive to the multiple you choose. Across the sensitivity grid the estimate spans $73.52 to $125.3. This is a relative estimate anchored to earnings, not a statement of fact. For a cash flow based view, see the intrinsic value estimate on the DCF page.
How our PE model works · Recalculate in PE mode · CF intrinsic value (DCF view)
Is CF Industries Holdings, Inc. (CF) Overvalued?
At $109.48, CF trades about 12.5% above its PE-based fair value estimate, a modest premium over the applied earnings multiple. Check whether earnings growth justifies the price.
COMPETITIVE MOAT
↑Scale and Distribution Network
CF's extensive manufacturing capacity and established distribution network create significant barriers to entry. This allows for efficient delivery of essential agricultural inputs across vast regions.
↑Cost Advantage in Production
Access to low-cost natural gas, a key feedstock for nitrogen production, provides CF with a structural cost advantage. This is crucial in a commodity-driven market.
↑Essential Product Demand
Nitrogen fertilizers are critical for global food production, ensuring consistent demand regardless of economic cycles. This underpins CF's long-term market position.
INVESTMENT RISKS
↓Commodity Price Volatility
CF's profitability is highly sensitive to fluctuations in nitrogen and natural gas prices. Unexpected drops can significantly impact earnings and cash flow.
↓Regulatory and Environmental Scrutiny
The agricultural input industry faces increasing environmental regulations and scrutiny. Changes in policy could lead to higher operating costs or impact production.
↓Intense Competition
The nitrogen fertilizer market is competitive, with global players vying for market share. New capacity or aggressive pricing from competitors can pressure margins.
Base case
CF base case PE valuation
Intrinsic Value
$97.28
Margin of safety
-12.5%
Expected annual return
-2.3%
Base case assumptions: -3.8% annual earnings growth, 10x target PE, 10% discount rate, 5 year projection. Data as of 2026-06-12.
This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the CF PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for CF Industries Holdings, Inc. respond.
Open PE Calculator for CFCompany Overview
CF Industries Holdings, Inc. is a global producer and distributor of hydrogen and nitrogen-based products. These essential chemicals serve a variety of purposes worldwide, including energy generation, agricultural fertilization, environmental emissions reduction, and numerous other industrial applications. The company's core product lineup features vital nitrogen compounds such as anhydrous ammonia, granular urea, urea ammonium nitrate (UAN), and different forms of ammonium nitrate. In addition to these primary offerings, CF Industries also provides specialized chemicals like diesel exhaust fluid, urea liquor, nitric acid, and aqua ammonia, alongside complex fertilizers containing nitrogen, phosphorus, and potassium. Its diverse customer base includes agricultural cooperatives, independent fertilizer distributors, commodity traders, wholesalers, and a wide array of industrial end-users. Founded in 1946, the firm is headquartered in Deerfield, Illinois.
Financial Metrics — CF PE Stock Valuation Data
PE Ratio (TTM)
9.6x
PEG Ratio
0.20
Earnings Yield
10.41%
ROE (TTM)
35.2%
Revenue/Share (TTM)
$48.04
Dividend Yield
1.83%
Debt/Equity
0.68x
Frequently Asked Questions
What is the PE ratio of CF?
The trailing twelve-month PE ratio of CF reflects how much investors pay per dollar of CF Industries Holdings, Inc.'s earnings. This metric is most useful when compared to Agricultural Inputs peers and the company's own historical range.
Is CF overvalued based on PE ratio?
CF's PE of 9.6x combined with a PEG ratio of 0.20 provides a growth-adjusted perspective. A PEG below 1.0 suggests CF may be undervalued relative to its earnings growth rate. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Agricultural Inputs, a DCF analysis may be more appropriate.
How do I value CF stock using PE ratio?
To value CF Industries Holdings, Inc. using PE: (1) Compare the current PE (9.6x) against the Agricultural Inputs median to assess relative pricing, (2) check the PEG ratio (0.20) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
What is the PEG ratio of CF?
CF's PEG ratio is 0.20, calculated by dividing the PE ratio (9.6x) by the expected earnings growth rate. A PEG below 1.0 is traditionally considered a sign of undervaluation — the market may not be fully pricing in the growth potential. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for CF stock valuation?
PE ratio gives a quick relative read — how CF is priced versus Agricultural Inputs peers. DCF provides an absolute value based on projected free cash flows. For CF, with a strong ROE of 35.2%, both methods are worth using — PE for a market-relative check, DCF to stress-test whether fundamentals justify the price. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
Learn More
- See CF DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
- PE Methodology — Step-by-step guide to PE ratio stock valuation
- DCF Methodology — Guide to discounted cash flow analysis
- PE Ratio — Understanding the price-to-earnings ratio
- Intrinsic Value — How to evaluate stock fair value
Related PE Valuations
All Basic Materials valuationsP/E and DCF value CF with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-06-12. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.