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Is Deere & Company (DE) Stock Trading Below Fair Value?

Monday, January 30, 2023 03:37 PM | InvestorsObserver Analysts

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Is Deere & Company (DE) Stock Trading Below Fair Value?

Deere & Company (DE) receives a strong valuation ranking of 86 from InvestorsObserver data analysis. The proprietary ranking system focuses on the underlying health of a company through analysis of its stock price, earnings, and growth rate. DE has a better value than 86% of stocks based on these valuation analytics. Investors primarily focused on buy-and-hold strategies will find the valuation ranking relevant to their goals when making investment decisions.

Valuation Rank - 86
DE gets a 86 Valuation Rank today. Find out what this means to you and get the rest of the rankings on DE!

Metrics Analysis

DE's trailing-12-month Price to Earnings (PE) ratio of 18.1 puts it around the historical average of roughly 15. DE is a average value at its current trading price as investors are paying around what its worth in relation to the company's earnings. DE's trailing-12-month earnings per share (EPS) of 23.29 does justify what it is currently trading at in the market. Trailing PE ratios, however, do not factor in a company's projected growth rate, resulting in some firms having high PE ratios due to high growth potentially enticing investors even if current earnings are low.
DE has a 12 month forward PE to Growth (PEG) ratio of 1.25. Markets are overvaluing DE in relation to its projected growth as its PEG ratio is currently above the fair market value of 1. 23.29's PEG comes from its forward price to earnings ratio being divided by its growth rate. PEG ratios are one of the most used valuation metrics due to its incorporation of more company fundamentals metrics and a focus on the firm's future rather than its past.


All together these valuation metrics paint a pretty poor picture for DE at its current price due to a overvalued PEG ratio despite strong growth. The PE and PEG for DE are worse than the average of the market resulting in a valuation score of 86. Click Here to get the full Report on Deere & Company (DE) stock.

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