<div id="readability-page-1"><div><h2>Recent price performance and business scale</h2> <p>Deere (DE) has seen its stock pull back recently, with the share price down about 2% over the past day, 5% over the past week, and 5% over the past month.</p> <p>Over a longer horizon, the stock is down roughly 6% over the past 3 months but remains higher year to date with a total return of about 20% and around 7% over the past year.</p> <p>The company reports annual revenue of about US$46.7b and net income of roughly US$4.8b, supported by its four operating segments across agriculture, turf, construction, forestry, and financial services.</p> <p>See our latest analysis for Deere.</p> <p>Recent weakness in Deere’s share price, including a decline over the past month and quarter, contrasts with a stronger year to date share price return and solid multi year total shareholder returns. This suggests momentum has cooled after a stronger run.</p> <p>If you are scanning for other opportunities tied to large scale equipment, this could be a good moment to review 34 power grid technology and infrastructure stocks</p> <p>With Deere trading around US$561.83 and some analysts assigning higher price targets, plus an estimated intrinsic value gap, the key question is simple: is this a genuine value opportunity or is the market already pricing in future growth?</p> <h2>Most Popular Narrative: 16% Undervalued</h2> <p>With Deere last closing at about $561.83 against a narrative fair value of roughly $665, the current price sits below what this widely followed framework implies.</p> <blockquote> <p><em>Rapid adoption of Deere's precision agriculture and automation solutions (e.g., JDLink Boost, Precision Essentials bundles, See &amp; Spray tech, and new automation features) is driving higher-value product sales and increased software engagement globally. This is positioning Deere to benefit from shifts toward high-efficiency, technology-enabled farming, and this should lift both future revenue and net margins through higher-margin recurring software and data services.</em></p> </blockquote> <p><em>Read the complete narrative.</em></p> <p>Curious how steady top line assumptions still support a higher value, while profits and margins are expected to do the heavy lifting, and what that implies for Deere's future earnings power and valuation multiple.</p> <p><strong>Result: Fair Value of $665.10 (UNDERVALUED)</strong></p> <p>Have a read of the narrative in full and understand what's behind the forecasts.</p> <p>However, this hinges on costs and demand, with higher tariffs and a sharp projected drop in North American large ag sales both capable of pressuring margins.</p> <p>Find out about the key risks to this Deere narrative.</p> <h2>Another View: What P/E Says About Deere</h2> <p>While the narrative fair value suggests Deere is undervalued, its current P/E of 31.5x is higher than both the US Machinery industry at 25.9x and its peer average of 25.3x, even though the fair ratio points to 41.6x. Is the market already paying up for the story here or leaving room for upside if sentiment improves?</p> <p>For a clearer sense of how this gap between current P/E, industry levels, peers, and the fair ratio could affect your risk and return trade off, take a look at the See what the numbers say about this price — find out in our valuation breakdown.</p> <figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/aaea2ecf-c4c6-40d1-b0b5-d99254559a35/chart/pe-multiple-vs-industry/query-ZGF0ZT0yMDI2LTA1LTE4?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/aaea2ecf-c4c6-40d1-b0b5-d99254559a35/chart/pe-multiple-vs-industry/query-ZGF0ZT0yMDI2LTA1LTE4"/><figcaption>NYSE:DE P/E Ratio as at May 2026</figcaption></figure><h2>Next Steps</h2> <p>With sentiment mixed across valuation, growth, and cyclic risk, this is the moment to look through the numbers yourself, weigh both the concern and the upside, and see how the 2 key rewards and 1 important warning sign</p> <h2>Looking for more investment ideas?</h2> <p>If Deere is on your radar, do not stop there. Use this moment to compare it with other compelling stock ideas and sharpen your watchlist.</p> <ul> <li>Spot potential bargains with solid fundamentals by scanning 51 high quality undervalued stocks.</li> <li>Prioritize resilience and sleep a little easier at night by reviewing 66 resilient stocks with low risk scores.</li> <li>Get ahead of the crowd by checking the screener containing 21 high quality undiscovered gems.</li> </ul> <p><em> This article by Simply Wall St is general in nature. <strong>We provide commentary based on historical data         and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice.</strong> It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your         financial situation. We aim to bring you long-term focused analysis driven by fundamental data.         Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.         Simply Wall St has no position in any stocks mentioned.</em></p><div><h3><strong>New: </strong>Manage All Your Stock Portfolios in One Place</h3><p>We've created the <strong>ultimate portfolio companion</strong> for stock investors, <strong>and it's free.</strong></p><p>• Connect an unlimited number of Portfolios and see your total in one currency<br/>• Be alerted to new Warning Signs or Risks via email or mobile<br/>• Track the Fair Value of your stocks<br/></p><p>Try a Demo Portfolio for Free</p></div></div></div>

<p>Deere's (DE) stock has recently pulled back, down 2% in a day and 5% over the past week and month, despite a 20% year-to-date return. Analysts suggest the stock is undervalued at $561.83 compared to a fair value of $665. The company's growth in precision agriculture and automation is expected to enhance future revenue and margins. However, risks include higher tariffs and declining North American ag sales. The current P/E ratio of 31.5x exceeds industry averages, raising questions about market sentiment.</p>

Assessing Deere (DE) Valuation After Recent Share Price Pullback And Precision Agriculture Growth Story