DE
Deere & Company (DE)
Last Price$499.63.5%
Market Cap$135.7B
DCF value
$537.6
Undervalued (DCF value)
7.6%
Discount Rate
8.4%
Long-Term Growth Rate
2.0%
Stock quality
6/10
Good

DE DCF Model

Free Cash Flow to Firm Model
NOPAT Model
Free Cash Flow to Equity Model
Net Income Model
Millions
Billions
Nov'20 ActualOct'21 ActualOct'22 ActualOct'23 ActualOct'24 ActualOct'25 EstimateOct'26 EstimateOct'27 EstimateOct'28 EstimateOct'29 EstimateOct'30 EstimateOct'31 EstimateOct'32 EstimateOct'33 EstimateOct'34 EstimateOct'35 Terminal
% growth
34,722.0
(9.5%)
43,033.0
23.9%
52,577.0
22.2%
61,222.0
16.4%
44,759.0
(26.9%)
38,975.2
(12.9%)
41,315.7
6.0%
45,467.5
10.0%
59,486.8
30.8%
75,378.5
26.7%
92,410.6
22.6%
109,484.8
18.5%
125,203.9
14.4%
138,022.5
10.2%
146,468.3
6.1%
149,397.6
2.0%
5,130.0
14.8%
8,595.0
20.0%
10,189.0
19.4%
15,339.0
25.1%
6,854.0
15.3%
8,226.9
21.1%
8,720.9
21.1%
9,597.2
21.1%
12,556.4
21.1%
15,910.8
21.1%
19,505.9
21.1%
23,109.9
21.1%
26,427.9
21.1%
29,133.6
21.1%
30,916.4
21.1%
31,534.7
21.1%
NOPAT
% effective tax rate
3,700.5
10.7%
6,720.4
15.6%
7,948.5
15.1%
11,956.4
19.5%
5,295.0
11.8%
6,355.6
16.3%
6,737.2
16.3%
7,414.2
16.3%
9,700.3
16.3%
12,291.7
16.3%
15,069.1
16.3%
17,853.3
16.3%
20,416.6
16.3%
22,506.9
16.3%
23,884.1
16.3%
24,361.8
16.3%
% of revenue
2,118.0
6.1%
2,050.0
4.8%
1,895.0
3.6%
2,004.0
3.3%
2,118.0
4.7%
1,508.3
3.9%
1,598.9
3.9%
1,759.5
3.9%
2,302.1
3.9%
2,917.0
3.9%
3,576.2
3.9%
4,236.9
3.9%
4,845.2
3.9%
5,341.3
3.9%
5,668.1
3.9%
5,781.5
3.9%
% of revenue
(2,656.0)
(7.6%)
(2,580.0)
(6.0%)
(3,788.0)
(7.2%)
(4,468.0)
(7.3%)
(1,640.0)
(3.7%)
(2,360.2)
(6.1%)
(2,501.9)
(6.1%)
(2,753.3)
(6.1%)
(3,602.3)
(6.1%)
(4,564.6)
(6.1%)
(5,596.0)
(6.1%)
(6,630.0)
(6.1%)
(7,581.8)
(6.1%)
(8,358.1)
(6.1%)
(8,869.5)
(6.1%)
(9,046.9)
(6.1%)
1,870.0
5.4%
396.0
0.9%
(4,315.0)
(8.2%)
(3,337.0)
(5.5%)
(181.0)
(0.4%)
(1,826.9)
(4.7%)
(1,936.6)
(4.7%)
(2,131.2)
(4.7%)
(2,788.4)
(4.7%)
(3,533.3)
(4.7%)
(4,331.6)
(4.7%)
(5,131.9)
(4.7%)
(5,868.7)
(4.7%)
(6,469.6)
(4.7%)
(6,865.5)
(4.7%)
(7,002.8)
(4.7%)
Free Cash Flow to Firm (FCFF)
% of revenue
5,032.5
14.5%
6,586.4
15.3%
1,740.5
3.3%
6,155.4
10.1%
5,592.0
12.5%
3,676.8
9.4%
3,897.6
9.4%
4,289.2
9.4%
5,611.7
9.4%
7,110.9
9.4%
8,717.7
9.4%
10,328.4
9.4%
11,811.2
9.4%
13,020.5
9.4%
13,817.2
9.4%
14,093.6
9.4%
% of FCFF used in calculation
64.1%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
Discount period
0.50
1.50
2.50
3.50
4.50
5.50
6.50
7.50
8.50
9.50
Discount factor
0.96
0.89
0.82
0.75
0.70
0.64
0.59
0.55
0.50
0.46
Discounted FCFF (DFCFF)
2,263.8
3,452.5
3,504.4
4,229.0
4,942.6
5,588.9
6,107.4
6,441.9
6,550.0
6,411.1

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DE DCF Value

DCF Value Calculation

as of Mar 07, 2025
Sum of DFCFF
% share of EV
49.5B
32.7%
Terminal Value (TV)
219.6B
Discounted TV
% share of EV
101.9B
67.3%
Total Debt
13.8B
Shares outstanding
271.6M
FX rate
1.0
7.6% undervalued

Equity Value Bridge

DE DCF Financials

Revenue
$44.8B -> $146.5B 12.6% CAGR
Operating Income
$6,854.0M -> $30.9B 16.3% CAGR
FCFF
$5,592.0M -> $13.8B 9.5% CAGR

DE DCF sensitivity

DCF value
Long-term Terminal growth rate
1.0%
1.5%
2.0%
2.5%
3.0%
WACC
7.0%
$632.0
$636.0
$636.0
$636.0
$636.0
7.5%
$573.0
$607.0
$619.0
$619.0
$619.0
8.4%
$487.0
$510.0
$538.0
$569.0
$588.0
8.5%
$480.0
$503.0
$529.0
$560.0
$585.0
9.0%
$443.0
$462.0
$484.0
$509.0
$538.0
DCF value, undervalued / overvalued
Long-term Terminal growth rate
1.0%
1.5%
2.0%
2.5%
3.0%
WACC
7.0%
26.0%
27.0%
27.0%
27.0%
27.0%
7.5%
15.0%
21.0%
24.0%
24.0%
24.0%
8.4%
(3.0%)
2.0%
8.0%
14.0%
18.0%
8.5%
(4.0%)
1.0%
6.0%
12.0%
17.0%
9.0%
(11.0%)
(8.0%)
(3.0%)
2.0%
8.0%

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FAQ

What is Deere & Company DCF (discounted cash flow) valuation?

As of Mar 07, 2025, Deere & Company's Discounted Cash Flow (DCF) valuation estimates its share price at $537.6. This suggests it may be undervalued by 7.6% compared to its current price of around $499.6, using a WACC of 8.4% and growth rates of 2.0%.

What is Deere & Company WACC?

As of Mar 07, 2025, Deere & Company's Weighted Average Cost of Capital (WACC) is approximately 8.4%.

What is Deere & Company Enterprise Value?

As of Mar 07, 2025, Deere & Company's Enterprise Value (EV) is approximately $151.4B. This value reflects the company's total market capitalization plus debt, minus cash and cash equivalents, providing a comprehensive measure of its overall value in the market.