Deere & Company logo DE - Deere & Company

Price: -- -- | CONSENSUS: Hold DETAILS
STRONG
BUY
0
BUY 19
HOLD 21
SELL 6
STRONG
SELL
0
| PRICE TARGET: $673.62 DETAILS
HIGH: $793.00
LOW: $458.00
MEDIAN: $715.00
CONSENSUS: $673.62
UPSIDE: 27.30%
AlphaVal

AlphaVal

Deterministic, archetype-aware fair value

Cyclical & Capital-Intensive 80% confidence

Primary model: Normalized Earnings × Cycle Multiple

Valuation Signal Fair Value Mild
Trading 2.8% below fair value
Current Price $529.15
Bear Case $440.63 16.7% downside ($440.63 - $529.15) / $529.15 = -16.7% $23.28 × 20x + net cash
Fair Value $544.30 2.9% upside ($544.30 - $529.15) / $529.15 = 2.9% $23.28 × 24x + net cash
Bull Case $647.98 22.5% upside ($647.98 - $529.15) / $529.15 = 22.5% $23.28 × 28x + net cash

Adjust Assumptions

24.0x
23.28$

Key Value Driver

Through-cycle normalized EPS ($23.28)

Implied Market Multiple 22.7x

Plain-Language Summary

Our base-case estimate uses Normalized Earnings × Cycle Multiple. We then blend that result with the average analyst price target of $673.62 from 46 analysts, using a 30% weight on analyst consensus. That produces an estimated intrinsic value of $544.30 per share.

Warnings

This company has a built-in lending arm whose debt is mixed in with the main business. We capped the debt adjustment to avoid overstating what the core business owes.
Price-to-book value of 7.0x is above the normal range for this type of business (0.7x-2.0x). The stock may already price in a strong cycle.
Wall Street's average price target is $673.62 (from 46 analysts). Our estimate is 27% below the consensus -- consider that gap carefully.

Key Risks

  • Standard 10-year DCF produces unreliable terminal values for cyclicals
  • 'Cheap' P/E at cycle peak is the most common value trap — normalize first
  • Captive finance subsidiaries have different risk profiles from manufacturing