Deere & Company (DE) Stock Valuation — PE Analysis
Agricultural - Machinery · NYSE
Current Price
$584.53
PE Ratio (TTM)
33.0x
Intrinsic Value
$357.12
-63.7% margin of safety
COMPETITIVE MOAT
↑Brand Loyalty & Dealer Network
Deere's strong brand recognition and extensive dealer network create significant switching costs for farmers. This established infrastructure provides crucial support and service, fostering deep customer loyalty.
↑Technological Innovation & Data
Investments in precision agriculture and autonomous solutions differentiate Deere. The company's growing data insights offer farmers efficiency gains, creating a technological moat.
↑Economies of Scale
As a leading manufacturer, Deere benefits from significant economies of scale in production. This allows for cost advantages over smaller competitors, enhancing pricing power.
INVESTMENT RISKS
↓Commodity Price Volatility
Fluctuations in agricultural commodity prices directly impact farmer income and their ability to invest in new equipment. This cyclicality poses a significant revenue risk for Deere.
↓Regulatory & Trade Policy Shifts
Changes in trade policies, like potential tariff adjustments on imported equipment, can alter competitive dynamics and impact Deere's global sales and profitability.
↓Competition & Disruption
Emerging technologies and new entrants could challenge Deere's market position. The rapid pace of innovation requires continuous investment to maintain its competitive edge.
Base case
DE base case PE valuation
A base case PE valuation for DE estimates a fair value of about $357.12 per share, against a current price of $584.53. The model assumes -3.9% annual earnings growth, a 33x target PE multiple, and a 10% discount rate.
Intrinsic Value
$357.12
Margin of safety
-63.7%
Expected annual return
-9.4%
Base case assumptions: -3.9% annual earnings growth, 33x target PE, 10% discount rate, 5 year projection. Data as of 2026-06-15.
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 DE PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Deere & Company respond.
Open PE Calculator for DECompany Overview
Deere & Company is a global manufacturer and distributor of a wide range of equipment. The company's operations are organized into four primary business segments: Production and Precision Agriculture, Small Agriculture and Turf, Construction and Forestry, and Financial Services. The Production and Precision Agriculture segment focuses on large-scale farming and advanced agricultural practices, offering medium-sized tractors, various harvesting machinery (including combines, cotton pickers, and sugarcane harvesters), front-end harvesting tools, sugarcane loaders, pull-behind scrapers, and essential tillage and seeding implements. It also supplies specialized application equipment like sprayers and nutrient management systems, along with soil preparation machinery, primarily serving grain growers. The Small Agriculture and Turf segment caters to smaller farming needs and land maintenance. Its product line includes utility tractors along with their complementary loaders and attachments. This segment also provides an extensive selection of turf and utility equipment, suchg as riding and commercial lawnmowers, specialized golf course maintenance machinery, and utility vehicles. Additionally, it offers various implements for tasks like mowing, tilling, snow removal, aerating, and general turf care across residential, commercial, golf, and sports environments, alongside other outdoor power products and hay and forage equipment. This division also resells products from other manufacturers. Its customer base includes dairy and livestock farmers, other crop producers, and general turf and utility clients. The Construction and Forestry segment delivers a comprehensive suite of heavy machinery for construction and logging. This includes earthmoving and roadbuilding equipment such as backhoe loaders, crawler dozers and loaders, four-wheel-drive loaders, excavators, motor graders, articulated dump trucks, landscape and skid-steer loaders, milling machines, pavers, compactors, rollers, crushers, screens, and asphalt plants. For forestry operations, it supplies log skidders, feller bunchers, log loaders and forwarders, and log harvesters, in addition to various attachments for all its machinery. Lastly, the Financial Services segment provides funding solutions to facilitate the sale and leasing of agriculture and turf, as well as construction and forestry equipment. It extends wholesale financing to dealers stocking these product lines, offers extended equipment warranties, and manages retail revolving charge accounts for end-users. Established in 1837, Deere & Company has its corporate headquarters situated in Moline, Illinois.
Financial Metrics — DE PE Stock Valuation Data
PE Ratio (TTM)
33.0x
PEG Ratio
n/m
Earnings Yield
3.03%
ROE (TTM)
18.3%
Revenue/Share (TTM)
$173.48
Dividend Yield
1.11%
Debt/Equity
2.33x
Frequently Asked Questions
What is the PE ratio of DE?
The trailing twelve-month PE ratio of DE reflects how much investors pay per dollar of Deere & Company's earnings. This metric is most useful when compared to Agricultural - Machinery peers and the company's own historical range.
Is DE overvalued based on PE ratio?
DE's PE of 33.0x combined with a PEG ratio of -2.24 provides a growth-adjusted perspective. DE has negative earnings, so its PE and PEG ratios are not meaningful here and cannot tell you whether the stock is over or undervalued. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Agricultural - Machinery, a DCF analysis may be more appropriate.
How do I value DE stock using PE ratio?
To value Deere & Company using PE: (1) Compare the current PE (33.0x) against the Agricultural - Machinery median to assess relative pricing, (2) check the PEG ratio (-2.24) 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 DE?
DE's PEG ratio is -2.24, calculated by dividing the PE ratio (33.0x) by the expected earnings growth rate. Because DE has negative earnings, its PEG ratio is not meaningful and should not be read as a sign of under or overvaluation. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for DE stock valuation?
PE ratio gives a quick relative read — how DE is priced versus Agricultural - Machinery peers. DCF provides an absolute value based on projected free cash flows. For DE, with a strong ROE of 18.3%, 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 DE 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 Industrials valuationsP/E and DCF value DE with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-06-15. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.