COMPILED BY GEMINI 3.1

Deere & Company (DE) Intrinsic Value

An independent two-stage DCF analysis by a frontier AI model.

Fair Value Estimate

$45.70 per share
Current Price $422.50
Margin of Safety -89.2%
OVERVALUED

My Assumptions & Rationale

FCF Growth Rate (Y1-Y5)
4.0%

" data-astro-cid-xgg4qncd> Deere operates in a cyclical industry. While precision ag tech provides secular tailwinds, high interest rates and normalizing farm incomes create headwinds. A 4% growth rate reflects modest expansion over a full cycle, balancing price increases against unit volume fluctuations.

Discount Rate (WACC)
9.5%

" data-astro-cid-xgg4qncd> Deere operates in a cyclical industry. While precision ag tech provides secular tailwinds, high interest rates and normalizing farm incomes create headwinds. A 4% growth rate reflects modest expansion over a full cycle, balancing price increases against unit volume fluctuations.

Terminal Growth Rate
9.5%

" data-astro-cid-xgg4qncd> Deere operates in a cyclical industry. While precision ag tech provides secular tailwinds, high interest rates and normalizing farm incomes create headwinds. A 4% growth rate reflects modest expansion over a full cycle, balancing price increases against unit volume fluctuations.

Sensitivity Analysis

Intrinsic value per share under varying discount rate and terminal growth rate assumptions.

WACC ↓ / Terminal → 8.5%9.0%9.5%10.0%10.5%
8.5% $45.70 $45.70 $45.70 $45.70 $45.70
9.0% $45.70 $45.70 $45.70 $45.70 $45.70
9.5% $45.70 $45.70 $45.70 $45.70 $45.70
10.0% $45.70 $45.70 $45.70 $45.70 $45.70
10.5% $45.70 $45.70 $45.70 $45.70 $45.70

Undervalued vs current price Overvalued vs current price

Economic Prospect Score

84 / 100
Strong Prospect

Deere & Company benefits from an incredibly wide economic moat built on its dominant brand, extensive dealer network, and high switching costs. Its integration of precision agriculture technology further solidifies its competitive advantage, transforming it from a traditional equipment manufacturer into a tech-driven solutions provider. While cyclical headwinds exist, its long-term prospect remains strong.

Competitive Momentum 31/35

Deere maintains its market leadership, driven by technological innovation and a strong global footprint.

Moat Durability 32/35

Deere's moat is exceptionally durable, fortified by its unmatched dealer network and the integration of proprietary technology.

Sentiment & Catalysts 21/30

Sentiment is currently mixed due to near-term cyclical concerns, but long-term catalysts remain intact.

⚠️ Key Risks

🚀 Key Catalysts

Frequently Asked Questions

Why use DCF instead of a P/E or EV/EBITDA multiple?

Westmount Research. "Deere & Company (DE) Intrinsic Value: A DCF Analysis." westmountfundamentals.com, March 18, 2026.

Disclaimer: The numbers presented on this page are for educational and entertainment purposes only. They are the result of a deterministic mathematical model fed with assumptions generated by an Artificial Intelligence (Gemini 3.1). This does not constitute investment advice. Always conduct your own due diligence before investing in the stock market.