DE PE Ratio & Valuation,Is DE Overvalued

DE Relative Valuation

DE's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, DE is overvalued; if below, it's undervalued.

Historical Valuation

Deere & Co (DE) is now in the Overvalued zone, suggesting that its current forward PE ratio of 29.21 is considered Overvalued compared with the five-year average of 17.47. The fair price of Deere & Co (DE) is between 240.99 to 364.65 according to relative valuation methord. Compared to the current price of 488.39 USD , Deere & Co is Overvalued By 33.93%.

Relative Value

Fair Zone

240.99-364.65

Current Price：488.39

33.93%

Overvalued

29.36

27.94

EV/EBITDA

Deere & Co. (DE) has a current EV/EBITDA of 27.94. The 5-year average EV/EBITDA is 17.08. The thresholds are as follows: Strongly Undervalued below 8.34, Undervalued between 8.34 and 12.71, Fairly Valued between 21.46 and 12.71, Overvalued between 21.46 and 25.83, and Strongly Overvalued above 25.83. The current Forward EV/EBITDA of 27.94 falls within the Strongly Overvalued range.

34.30

EV/EBIT

Deere & Co. (DE) has a current EV/EBIT of 34.30. The 5-year average EV/EBIT is 19.23. The thresholds are as follows: Strongly Undervalued below 7.13, Undervalued between 7.13 and 13.18, Fairly Valued between 25.28 and 13.18, Overvalued between 25.28 and 31.33, and Strongly Overvalued above 31.33. The current Forward EV/EBIT of 34.30 falls within the Strongly Overvalued range.

3.30

Deere & Co. (DE) has a current PS of 3.30. The 5-year average PS is 2.55. The thresholds are as follows: Strongly Undervalued below 1.68, Undervalued between 1.68 and 2.12, Fairly Valued between 2.99 and 2.12, Overvalued between 2.99 and 3.42, and Strongly Overvalued above 3.42. The current Forward PS of 3.30 falls within the Overvalued range.

22.73

P/OCF

Deere & Co. (DE) has a current P/OCF of 22.73. The 5-year average P/OCF is 16.12. The thresholds are as follows: Strongly Undervalued below 8.91, Undervalued between 8.91 and 12.52, Fairly Valued between 19.72 and 12.52, Overvalued between 19.72 and 23.32, and Strongly Overvalued above 23.32. The current Forward P/OCF of 22.73 falls within the Overvalued range.

34.09

P/FCF

Deere & Co. (DE) has a current P/FCF of 34.09. The 5-year average P/FCF is 19.52. The thresholds are as follows: Strongly Undervalued below 7.28, Undervalued between 7.28 and 13.40, Fairly Valued between 25.65 and 13.40, Overvalued between 25.65 and 31.77, and Strongly Overvalued above 31.77. The current Forward P/FCF of 34.09 falls within the Strongly Overvalued range.

Deere & Co (DE) has a current Price-to-Book (P/B) ratio of 5.05. Compared to its 3-year average P/B ratio of 5.15 , the current P/B ratio is approximately -1.83% higher. Relative to its 5-year average P/B ratio of 5.74, the current P/B ratio is about -11.88% higher. Deere & Co (DE) has a Forward Free Cash Flow (FCF) yield of approximately 2.47%. Compared to its 3-year average FCF yield of 3.22%, the current FCF yield is approximately -23.50% lower. Relative to its 5-year average FCF yield of 3.28% , the current FCF yield is about -24.88% lower.

5.08

P/B

Median3y

5.15

Median5y

5.74

2.47

FCF Yield

Median3y

3.22

Median5y

3.28

Competitors Valuation Multiple

The average P/S ratio for DE's competitors is 1.64, providing a benchmark for relative valuation. Deere & Co Corp (DE) exhibits a P/S ratio of , which is -100% above the industry average. Given its robust revenue growth of 11.22%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of DE increased by 15.18% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 20.71 to 26.37.

The secondary factor is the Revenue Growth, contributed 11.22%to the performance.

Overall, the performance of DE in the past 1 year is driven by P/E Change. Which is more unsustainable.

11.22%

11.14B → 12.39B

Revenue Growth

-23.32%

11.15 → 8.55

Margin Expansion

27.28%

20.71 → 26.37

P/E Change

15.18%

423.70 → 488.01

Mkt Cap Growth

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Frequently Asked Questions

Is Deere & Co (DE) currently overvalued or undervalued?

What is Deere & Co (DE) fair value?

DE's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average , adjusted by weights. The fair price of Deere & Co (DE) is between 240.99 to 364.65 according to relative valuation methord.

How does DE's valuation metrics compare to the industry average?

The average P/S ratio for DE's competitors is 1.64, providing a benchmark for relative valuation. Deere & Co Corp (DE) exhibits a P/S ratio of , which is -100.00% above the industry average. Given its robust revenue growth of 11.22%, this premium appears unsustainable.

What is the current P/B ratio for Deere & Co (DE) as of Dec 16 2025?

As of Dec 16 2025, Deere & Co (DE) has a P/B ratio of 5.05. This indicates that the market values DE at 5.05 times its book value.

What is the current FCF Yield for Deere & Co (DE) as of Dec 16 2025?

As of Dec 16 2025, Deere & Co (DE) has a FCF Yield of 2.47%. This means that for every dollar of Deere & Co’s market capitalization, the company generates 2.47 cents in free cash flow.

What is the current Forward P/E ratio for Deere & Co (DE) as of Dec 16 2025?

As of Dec 16 2025, Deere & Co (DE) has a Forward P/E ratio of 29.21. This means the market is willing to pay $29.21 for every dollar of Deere & Co’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for Deere & Co (DE) as of Dec 16 2025?

As of Dec 16 2025, Deere & Co (DE) has a Forward P/S ratio of 3.30. This means the market is valuing DE at $3.30 for every dollar of expected revenue over the next 12 months.

DE Valuation