Deere & Company shares appear undervalued relative to both discounted cash flow and earnings-based valuation models, even after a 93.1% return over the past five years. A two-stage free cash flow to equity model estimates an intrinsic value of about $722 per share, roughly 13.9% above the current price of $621.27, supported by the company's latest twelve-month free cash flow of approximately $3.7 billion. On an earnings basis, Deere trades at a price-to-earnings ratio of about 35.1 times, below a modeled fair P/E of roughly 43.0 times, though it remains above the machinery industry average of 27.9 times and a peer group average of 26.9 times. The company's raised full-year guidance and expanded share buyback program contribute to the view that the gap between price and intrinsic value may partly reflect sentiment catching up to its cash flow profile. Broader valuation checks score only 2 out of 6, suggesting investors should approach the apparent discount with caution rather than treating it as a clear mispricing.
Deere & CompanyAnalyst valuation models suggest Deere is undervalued, with raised guidance and expanded buyback supporting the view.