<div id="readability-page-1"><div><ul> <li>Wondering if Deere at around US$558 per share still offers value, or if most of the easy gains are already behind it? This article is built to help you frame that question clearly.</li> <li>The stock is down about 5.3% over the past week and 5.5% over the past month, yet it is still up 19.6% year to date and 7.4% over the past year. Those moves can change how you think about both opportunity and risk.</li> <li>Recent coverage has focused on how Deere fits into long term themes in agriculture and construction equipment, including the role of automation and digital tools in equipment fleets. This context matters because it shapes how investors are thinking about where the current share price sits versus those long term expectations.</li> <li>Deere currently has a valuation score of 2 out of 6. Next up is a closer look at what different valuation approaches say about the stock today and how you can go one step further by focusing on what really drives those numbers over time.</li> </ul> Deere scores just 2/6 on our valuation checks. See what other red flags we found in the full valuation breakdown. <h3>Approach 1: Deere Discounted Cash Flow (DCF) Analysis</h3> A Discounted Cash Flow, or DCF, model takes estimates of a company’s future cash flows and discounts them back to today’s dollars to arrive at an intrinsic value per share. For Deere, the model used is a 2 Stage Free Cash Flow to Equity approach. The latest twelve month free cash flow is about $3.7b. Analyst and extrapolated projections in this model point to free cash flow of $4.3b in 2026, rising to $12.4b by 2030, with further estimates extending out to 2035. Simply Wall St uses analyst estimates for the nearer years and then extrapolates beyond that using its own growth assumptions within the model. After discounting these projected cash flows, this DCF model arrives at an estimated intrinsic value of about $668.59 per share. Compared with a share price around $558 in the analysis, this implies Deere trades at roughly a 16.5% discount to the DCF estimate, which indicates the stock is undervalued on this cash flow view. Result: UNDERVALUED Our Discounted Cash Flow (DCF) analysis suggests Deere is undervalued by 16.5%. Track this in your watchlist or portfolio, or discover 54 more high quality undervalued stocks. <figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/aaea2ecf-c4c6-40d1-b0b5-d99254559a35/chart/dcf/query-ZGF0ZT0yMDI2LTA1LTIw?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/dcf/query-ZGF0ZT0yMDI2LTA1LTIw"/><figcaption>DE Discounted Cash Flow as at May 2026</figcaption></figure> Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Deere. <h3>Approach 2: Deere Price vs Earnings</h3> For a profitable company like Deere, the P/E ratio is a useful shorthand because it ties what you pay directly to today’s earnings, which are a key anchor for many investors. What counts as a “normal” P/E depends on how the market views a company’s growth potential and risk. Higher expected growth or lower perceived risk can justify a higher P/E, while slower expected growth or higher risk usually lines up with a lower multiple. Deere currently trades on a P/E of about 31.3x. That sits above both the Machinery industry average P/E of roughly 25.8x and the peer group average of about 25.1x, which indicates the stock is priced at a premium compared with many listed machinery companies. Simply Wall St’s Fair Ratio for Deere is 41.6x. This is a proprietary estimate of the P/E that could be reasonable given factors such as earnings growth characteristics, profit margins, industry, market cap and specific risks. Because it blends these company specific drivers, it can be a more tailored yardstick than a simple comparison with industry or peers. Comparing the current P/E of 31.3x with the Fair Ratio of 41.6x indicates the stock screens as undervalued on this earnings multiple view. Result: UNDERVALUED <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-ZGF0ZT0yMDI2LTA1LTIw?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-ZGF0ZT0yMDI2LTA1LTIw"/><figcaption>NYSE:DE P/E Ratio as at May 2026</figcaption></figure> P/E ratios tell one story, but what if the real opportunity lies elsewhere? Start investing in legacies, not executives. Discover our 19 top founder-led companies. <h3>Upgrade Your Decision Making: Choose your Deere Narrative</h3> Earlier it was mentioned that there is an even better way to understand valuation, so here is Narratives, a simple tool on Simply Wall St’s Community page that lets you set a story for Deere, link that story to specific forecasts for revenue, earnings and margins, and see the Fair Value that drops out. You can then compare it directly to today’s price when thinking about buying or selling. A Narrative is your view in numbers and words. For example, one Deere Narrative might follow the bullish analyst cohort that connects stronger construction demand, farm fleet replacement and higher margins to a Fair Value around US$793 per share. Another Narrative might use more cautious assumptions around flat revenue, more limited margin expansion and tariff pressure that tie back to a Fair Value closer to US$500 per share. Because Narratives on Simply Wall St are updated as new news, earnings and analyst estimates are added, you can see how the market’s most optimistic and most cautious Deere stories evolve over time and decide which set of assumptions feels closest to your own. For Deere, however, we will make it really easy for you with previews of two leading Deere narratives: 🐂 Deere Bull Case Fair value: US$665.10 per share Implied undervaluation versus the recent US$558.07 share price: about 16% Revenue growth assumption: 46% <ul> <li>Analysts in this camp link precision agriculture, automation and software based services to higher margin revenue and stronger earnings over time.</li> <li>They pair that with expectations for a recovery in global farm conditions and disciplined inventory management, which together support higher profit margins.</li> <li>To line up with this view, you would need to be comfortable with earnings reaching about US$8.4b by 2029, margins rising, and the stock trading on a P/E of roughly 27.7x on those earnings.</li> </ul> 🐻 Deere Bear Case Fair value: US$500.00 per share Implied overvaluation versus the recent US$558.07 share price: about 12% Revenue growth assumption: a decline of about 81% <ul> <li>The more cautious analysts focus on the risk that current support from construction projects, high equipment prices and incentives could fade, which may pressure volumes and margins.</li> <li>They highlight sensitivity to tariffs, input costs and continued heavy investment in new products and digital tools, which could weigh on profitability if adoption or pricing power falls short.</li> <li>To agree with this view, you would need to assume earnings of about US$6.1b by 2029 on flatter revenue and a P/E of about 28.5x, which they see as too demanding relative to their expectations.</li> </ul> Do you think there's more to the story for Deere? Head over to our Community to see what others are saying! <figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/aaea2ecf-c4c6-40d1-b0b5-d99254559a35/chart/quote-price/query-ZGF0ZT0yMDI2LTA1LTIw?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/quote-price/query-ZGF0ZT0yMDI2LTA1LTIw"/><figcaption>NYSE:DE 1-Year Stock Price Chart</figcaption></figure> This article by Simply Wall St is general in nature. 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. 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.<div><h3>New: Manage All Your Stock Portfolios in One Place</h3>We've created the ultimate portfolio companion for stock investors, and it's free.• Connect an unlimited number of Portfolios and see your total in one currency • Be alerted to new Warning Signs or Risks via email or mobile • Track the Fair Value of your stocks Try a Demo Portfolio for Free</div></div></div>

The article evaluates Deere's stock, currently priced at approximately $558, questioning its value after a strong year-to-date rally. Despite a recent decline, the stock is up 19.6% year-to-date. Valuation analyses suggest Deere is undervalued, with a DCF model indicating a fair value of $668.59, representing a 16.5% discount. Additionally, the P/E ratio of 31.3x is above industry averages, yet still suggests undervaluation compared to a fair ratio of 41.6x. Investors are encouraged to consider long-term growth narratives.

Is It Too Late To Consider Deere (DE) After Its Strong Year To Date Rally?