DE Valuation

Deere & Co

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505.850

-1.13(-0.223%)1D

Overview
Forecast
Valuation
Earnings

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.

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Historical Valuation

Deere & Co (DE) is now in the Overvalued zone, suggesting that its current forward PE ratio of 25.58 is considered Overvalued compared with the five-year average of 16.74. The fair price of Deere & Co (DE) is between 285.07 to 410.44 according to relative valuation methord. Compared to the current price of 505.85 USD , Deere & Co is Overvalued By 23.24%.

Relative Value

Fair Zone

285.07-410.44

Current Price：505.85

23.24%

Overvalued

25.58

Trailing

Forward

25.64

EV/EBITDA

Deere & Co. (DE) has a current EV/EBITDA of 25.64. The 5-year average EV/EBITDA is 16.39. The thresholds are as follows: Strongly Undervalued below 8.99, Undervalued between 8.99 and 12.69, Fairly Valued between 20.09 and 12.69, Overvalued between 20.09 and 23.79, and Strongly Overvalued above 23.79. The current Forward EV/EBITDA of 25.64 falls within the Strongly Overvalued range.

32.44

EV/EBIT

Deere & Co. (DE) has a current EV/EBIT of 32.44. The 5-year average EV/EBIT is 18.19. The thresholds are as follows: Strongly Undervalued below 8.27, Undervalued between 8.27 and 13.23, Fairly Valued between 23.16 and 13.23, Overvalued between 23.16 and 28.12, and Strongly Overvalued above 28.12. The current Forward EV/EBIT of 32.44 falls within the Strongly Overvalued range.

3.49

Deere & Co. (DE) has a current PS of 3.49. The 5-year average PS is 2.46. The thresholds are as follows: Strongly Undervalued below 1.63, Undervalued between 1.63 and 2.05, Fairly Valued between 2.88 and 2.05, Overvalued between 2.88 and 3.30, and Strongly Overvalued above 3.30. The current Forward PS of 3.49 falls within the Strongly Overvalued range.

20.66

P/OCF

Deere & Co. (DE) has a current P/OCF of 20.66. The 5-year average P/OCF is 16.57. The thresholds are as follows: Strongly Undervalued below 6.89, Undervalued between 6.89 and 11.73, Fairly Valued between 21.40 and 11.73, Overvalued between 21.40 and 26.24, and Strongly Overvalued above 26.24. The current Forward P/OCF of 20.66 falls within the Historic Trend Line -Fairly Valued range.

27.83

P/FCF

Deere & Co. (DE) has a current P/FCF of 27.83. The 5-year average P/FCF is 20.02. The thresholds are as follows: Strongly Undervalued below 4.44, Undervalued between 4.44 and 12.23, Fairly Valued between 27.80 and 12.23, Overvalued between 27.80 and 35.59, and Strongly Overvalued above 35.59. The current Forward P/FCF of 27.83 falls within the Overvalued range.

Deere & Co (DE) has a current Price-to-Book (P/B) ratio of 5.65. Compared to its 3-year average P/B ratio of 5.26 , the current P/B ratio is approximately 7.43% higher. Relative to its 5-year average P/B ratio of 5.78, the current P/B ratio is about -2.19% higher. Deere & Co (DE) has a Forward Free Cash Flow (FCF) yield of approximately 3.16%. Compared to its 3-year average FCF yield of 2.95%, the current FCF yield is approximately 7.09% lower. Relative to its 5-year average FCF yield of 3.49% , the current FCF yield is about -9.52% lower.

5.65

P/B

Median3y

5.26

Median5y

5.78

3.16

FCF Yield

Median3y

2.95

Median5y

3.49

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Competitors Valuation Multiple

The average P/S ratio for DE's competitors is 2.69, providing a benchmark for relative valuation. Deere & Co Corp (DE) exhibits a P/S ratio of 3.49, which is 29.71% above the industry average. Given its robust revenue growth of -16.23%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Westinghouse Air Brake Technologies Corp

Performance Decomposition

Market capitalization of DE increased by 31.14% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 15.66 to 24.52.

The secondary factor is the Margin Expansion, contributed -9.20%to the performance.

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

-16.23%

15.24B → 12.76B

Revenue Growth

-9.20%

15.54 → 14.11

Margin Expansion

56.57%

15.66 → 24.52

P/E Change

31.14%