Deere & Company logo DE - Deere & Company

Price: -- -- | CONSENSUS: Hold DETAILS
STRONG
BUY
0
BUY 19
HOLD 21
SELL 6
STRONG
SELL
0
| PRICE TARGET: $691.58 DETAILS
HIGH: $812.00
LOW: $500.00
MEDIAN: $707.50
CONSENSUS: $691.58
UPSIDE: 17.32%
AlphaVal

AlphaVal

Deterministic, archetype-aware fair value

Cyclical & Capital-Intensive 80% confidence

Primary model: Normalized Earnings × Cycle Multiple

Valuation Signal Overvalued Mild
Trading 7.2% above fair value
Current Price $589.48
Bear Case $444.99 24.5% downside ($444.99 - $589.48) / $589.48 = -24.5% $23.28 × 20x + net cash
Fair Value $549.69 6.8% downside ($549.69 - $589.48) / $589.48 = -6.8% $23.28 × 24x + net cash
Bull Case $654.39 11.0% upside ($654.39 - $589.48) / $589.48 = 11.0% $23.28 × 28x + net cash

Adjust Assumptions

24.0x
23.28$

Key Value Driver

Through-cycle normalized EPS ($23.28)

Implied Market Multiple 25.3x

Plain-Language Summary

Our base-case estimate uses Normalized Earnings × Cycle Multiple. We then blend that result with the average analyst price target of $691.58 from 46 analysts, using a 30% weight on analyst consensus. That produces an estimated intrinsic value of $549.69 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 7.8x 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 $691.58 (from 46 analysts). Our estimate is 29% 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