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Deere & Company (DE) Stock Analysis

Score A

Blue Chip · Grade C · Bullish

Industrials · Farm & Heavy Construction Machinery

$560.69

Fair Value

$518.16

-7.6%

Conviction

8/10

Quality

C

Classification

Blue Chip

Investment Thesis

Good opportunity: Solid company with good risk/reward at 3.8:1.

For New Investors

Quantitative score: high

For Current Holders

Quantitative score: neutral

Buy if

  • Price drops 15-20% (improves asymmetry)
  • Bull scenario catalysts materialize
  • Market-wide correction creates opportunity

Sell if

  • Bear scenario triggers occur
  • Quality metrics deteriorate (ROIC declining)
  • Better alternatives emerge

Valuation

Fair Value estimate: $518.16 (-7.6%). Approximately at fair value.

PEG-Based EPS

$642.30

FCF DCF Model

$580.91

EV/EBITDA

$405.38

Blended Fair Value

$518.16

Confidence

High

Methods

PEG-Based EPS, FCF 2-Stage DCF, EV/EBITDA

Quality Analysis

C

67/120 points

Investable

ROE (3Y Avg)

32.4%

ROIC-WACC Spread

1.5%

D/E Ratio

2.5x

Current Ratio

2.3x

Interest Coverage

3x

FCF Positive Years

3/3

Quality Flags

  • ROIC spread: 1.5pp (got 4/25 pts)
  • Leverage: D/E 2.5x (0/15 pts)
  • Interest coverage: 2.7x (8/10 pts)

Market Sentiment

Wall Street Consensus

$730.00

+30.2% Upside

23 analysts

Range: $458.00$793.00

Rating: Buy

Our model aligns with Wall Street consensus.

Trend & Technical

Bullish

Price ($560.48) is 8.2% above SMA 200 ($517.82). Bullish trend confirmed.

Technical Score73/100

Tech Score 73/100 — Strong technical setup. Trend, momentum, and positioning aligned bullish.

Risk & Reward

Asymmetry Ratio

3.76:1

Expected Return

+15.6%

Bull Upside

+37.6%

Bear Downside

-10.0%

Excellent asymmetry: 3.76:1 ratio. Upside significantly outweighs downside.

Verdict: Very Favorable

Scenario Analysis

Bear

Base

Bull

Buy Zone & Action Plan

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Technical Analysis

RSI, MACD, moving averages, trend signals, and momentum indicators.

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Frequently Asked Questions

What is the fair value of DE?

Based on our multi-method conviction analysis, the estimated fair value of Deere & Company (DE) is $518.16. This is calculated by blending PEG-Based EPS, FCF 2-Stage DCF, EV/EBITDA and applying a quality premium of 0% based on the company's fundamentals. The confidence level of this estimate is high.

Is DE a buy, sell, or hold?

DE currently has a BUY rating with a conviction score of 8/10. Good opportunity: Solid company with good risk/reward at 3.8:1. Quantitative score: high.

Is DE a high-quality stock?

Deere & Company has a quality grade of C (67/120 points), rated as Investable. Key metrics include ROE of 32.4%, ROIC-WACC spread of 1.5%, and D/E ratio of 2.5x.

What type of stock is DE?

DE is classified as a "blue_chip" in our framework. High P/E: 31.6x, Low dividend (reinvesting): 1.2%, Mature growth: -0.7%, High debt: D/E 2.5x, Cyclical sector: Industrials

What do Wall Street analysts say about DE?

23 Wall Street analysts have a consensus price target of $730.00 for DE, representing +30.2% upside. Targets range from $458.00 to $793.00. The consensus recommendation is "Buy". Our model aligns with Wall Street consensus.

What are the risks of investing in DE?

The risk/reward asymmetry ratio for DE is 3.76:1, rated as Very Favorable. Excellent asymmetry: 3.76:1 ratio. Upside significantly outweighs downside. The expected return is +15.6%, with bull case upside of +37.6% and bear case downside of -10.0%.

What is the current trend for DE?

DE is in a bullish trend. Price ($560.48) is 8.2% above SMA 200 ($517.82). Bullish trend confirmed. The technical score is 73/100.

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Last updated: May 19, 2026 · Framework version 3.7

This analysis is for informational purposes only and should not be considered financial advice. Always do your own research before making investment decisions.