Deere & Company (DE) DCF Valuation
Deere DCF: $4.5B TTM FCF, $38B net debt, 3% growth on smart agriculture.
Industrials · Founded 1837 · Beta 1.10
Deere & Company
Current price: $482.40 · Market cap ≈ $139.9B
Deere's $4.5B TTM FCF is cyclical with farm income. The $38B net debt is high. Dividend payer. Long-term thesis depends on the smart agriculture + autonomous farming + replacement cycle.
DCF Valuation Inputs
High-growth phase
Decay/growth normalization
Perpetual (≤ WACC)
Must be > terminal growth
in millions
Enterprise Value
$75M
Equity Value
$37M
Per Share
$0
Upside / (Downside)
-100.0%
PV of explicit FCF
$19M
Terminal value
$86M
PV of terminal
$56M
Terminal % of EV
74.1%
| Year | Growth | FCF ($M) | Discount Factor | PV ($M) |
|---|---|---|---|---|
| 0 | base | $5 | 1.000 | — |
| 1 | 3.0% | $5 | 0.917 | $4 |
| 2 | 4.0% | $5 | 0.842 | $4 |
| 3 | 4.0% | $5 | 0.772 | $4 |
| 4 | 4.0% | $5 | 0.708 | $4 |
| 5 | 4.0% | $5 | 0.650 | $4 |
| Terminal | perpetual | — | — | $56 |
Discount factor = 1 / (1 + WACC)ⁿ. Terminal value computed using the Gordon Growth Model: TV = FCF_N × (1 + g) / (WACC − g), then discounted back to present.
| g ＼ WACC | 7.0% | 8.0% | 9.0% | 10.0% | 11.0% |
|---|---|---|---|---|---|
| 1.5% | $0 | $0 | $0 | $0 | $0 |
| 2.0% | $0 | $0 | $0 | $0 | $0 |
| 2.5% | $0 | $0 | $0 | $0 | $0 |
| 3.0% | $0 | $0 | $0 | $0 | $0 |
| 3.5% | $0 | $0 | $0 | $0 | $0 |
Highlighted cell is your current WACC × terminal-growth assumption. Cells beyond WACC ≤ g are undefined (Gordon Growth fails).
DE DCF: At Default Assumptions
| Item | Value | Notes |
|---|---|---|
| Current price | $482.40 | Market |
| Intrinsic value (per share) | $0.13 | DCF model output |
| Upside / (Downside) | -100.0% | vs current price |
| Enterprise value | $$75M | PV of explicit FCF + terminal |
| Equity value | $$37M | EV − net debt |
| Key fact | Smart agriculture: ~25% of equipment revenue | |
Numbers reflect TTM fundamentals + default DCF assumptions (9.0% WACC, 2.5% terminal growth, 3% Year-1 growth, 4% Years 2+). Use the calculator above to run your own scenario.
DE Sources & References
- SEC EDGAR: latest 10-K filing, 10-Q filings, and proxy statement for Deere & Company (DE).
- Yahoo Finance: real-time price snapshot, analyst consensus growth estimates, and 52-week range.
- S&P Capital IQ: WACC build (cost of equity via CAPM + after-tax cost of debt).
- Federal Reserve Economic Data (FRED): risk-free rate for CAPM, sector beta benchmarks.
- Damodaran Online (NYU): Industrials sector WACC and beta benchmarks for cross-validation.
DCF models for other large-caps
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Author
Maya Chen, CFA
Chartered Financial Analyst
Independently reviewed
Dr. Aaron Pak, PhD
Doctor of Kinesiology & Public Health
Last reviewed: August 12, 2026 · Next scheduled review: quarterly
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Cross-checked against authoritative formulas (IRS, NIST, ACM) and updated for 2025/2026 tax years and rates.
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