DE Stock is a Great Buy After Recent Market Performance

This DE analysis will answer the question "Is the DE stock a good buy right now?". This analysis uses 2 valuation methods to determine a DE Stock Forecast, which can help us to answer the previously mentioned question. You are probably aware that Deere & Company (NYSE: DE) is a leader in the Farm & Heavy Construction Machinery space. In this analysis, we are going to look at some of the key financial ratios for Deere & Company to determine a price prediction for DE. Remember these price predictions take into account several assumptions (which I will highlight) to determine a future price. I'll share my DE stock price prediction, then show you the approach and assumptions used to calculate the DE stock forecast. Before we go any further, let me start by saying this, stock forecasting is hard. I don't know what the future will hold, and neither do Wall Street Analysts. If they could accurately predict the future, they would be able to beat the S&P 500 and I would be extremely wealthy. What I can say is that we can use available data to determine a reasonable DE stock forecast and helps us make better investment decisions, so hopefully, you find this analysis useful. DE Stock Forecast for 2025 is $485.76 Per Share The Deere & Company stock price prediction of $485.76 was derived from 2 main valuation methods (which are averaged for the final price target you see above). I'll dive into the approach to show you how I determined how I “predicted” a stock price of $485.76 for DE. DE Stock Financial Growth Metrics DE Comparable Companies Analysis The Financial growth Metrics provide an analytics valuation approach to determining a reasonable DE stock forecast. The comparable companies' analysis determines DE stock forecast by comparing DE's financial ratios to the average financial ratios of a group of similar stocks. DE Stock Forecast Using PE Ratio and EPS For this part of the analysis, I am looking at the history of key financial metrics for Deere & company to forecast the stock into 2022 and 2025. Most investors know that historical performance does not guarantee future performance, but it is useful to see how DE has been trending. DE's Forward Earnings Per Share has been estimated to be 25.68. Furthermore, DE's Forward Price to Earnings Ratio has been estimated to be 13.86 (and we assume this remains the same) then we determine the DE stock forecast by multiple the P/E by the EPS to give us a stock price prediction of $355.92 per share There are other ways to predict the price for DE but I would argue that P/E, EPS, and Earnings Growth are the most commonly used financial metrics by analysts and investors. This is why I used them to forecast DE's stock price. DE Stock Forecast for 2025 Using Comparable Analysis Who are DE's Competitors? In order to undergo a comparable analysis, we need to outline DE's main competitors. These competitors need to have; a stock, valid financial ratios, operations similar to DE, and a market cap similar to DE (if possible). By keeping this in mind, I found the following list of companies to be some of DE stock's closest competitors: CAT, GE, BA, MMM, LMT, RTX, CNI, HON, ITW, and NSC Using a Comparable Analysis to Determine a DE Price Forecast DE's current PEG ratio is 0.14, compared to the average PEG ratio of DE's peers being 0.54. This implies that DE is undervalued and their share price should change by a factor of 288.34% to be at fair value (based on DE's PEG compared to the PEG of their peers). DE's current P/E ratio is 16.3, compared to the average P/E ratio of DE's peers being 17.51. This implies that DE is undervalued and their share price should change by a factor of 7.44% to be at fair value (based on DE's P/E compared to the P/E of their peers). DE's D/E ratio is 3.44, compared to the average D/E ratio of DE's peers being 2.62. This implies that DE is overvalued and their share price should change by a factor of -23.94% to be at fair value (based on DE's D/E compared to the D/E of their peers). By taking an average of these 3 comparable analyses, we can come to a final valuation for the DE stock. By doing this I arrived at a potential upside for the DE stock of 90.61%, which (given DE's current price of $322.96) implies a price target of $615.59. Are the DE Analyst Ratings in Agreeance With Our Conclusion? Analyst Ratings have provided a relatively strong indicator of future price movement, which is why they are used to (hopefully) support our DE stock forecast. There are a total of 36 analyst ratings for DE, which are distributed as follows: 27 Buys 8 Holds 1 Sells Overall, the majority of analysts are either bullish ("buy") on the DE Stock. This is great news for investors as the majority of analysts believe that the DE stock is below its fair market value, which indicates that their stock is undervalued. This is in agreeance with the conclusion that I arrived at via my own valuation methods. DE Stock Forecast and Price Prediction Summary Should you buy DE? Well, based on the overall DE stock forecast of $485.76 per share, and the current price of DE, I would agree with the analysts and say DE is a buy. Let me know what you think, happy to dive into other aspects of DE to help you make an informed investment decision.

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DE Stock is a Great Buy After Recent Market Performance

Jul 26, 2022

bullish

general Analysis

[4 min Read]

blog post cover photo

Photo by: Thomas Buijck

This DE analysis will answer the question "Is the DE stock a good buy right now?". This analysis uses 2 valuation methods to determine a DE Stock Forecast, which can help us to answer the previously mentioned question.

You are probably aware that Deere & Company (NYSE: DE) is a leader in the Farm & Heavy Construction Machinery space. In this analysis, we are going to look at some of the key financial ratios for Deere & Company to determine a price prediction for DE. Remember these price predictions take into account several assumptions (which I will highlight) to determine a future price. I'll share my DE stock price prediction, then show you the approach and assumptions used to calculate the DE stock forecast.

Before we go any further, let me start by saying this, stock forecasting is hard. I don't know what the future will hold, and neither do Wall Street Analysts. If they could accurately predict the future, they would be able to beat the S&P 500 and I would be extremely wealthy. What I can say is that we can use available data to determine a reasonable DE stock forecast and helps us make better investment decisions, so hopefully, you find this analysis useful.

DE Stock Forecast for 2025 is $485.76 Per Share

The Deere & Company stock price prediction of $485.76 was derived from 2 main valuation methods (which are averaged for the final price target you see above). I'll dive into the approach to show you how I determined how I “predicted” a stock price of $485.76 for DE.

  1. DE Stock Financial Growth Metrics
  2. DE Comparable Companies Analysis

The Financial growth Metrics provide an analytics valuation approach to determining a reasonable DE stock forecast. The comparable companies' analysis determines DE stock forecast by comparing DE's financial ratios to the average financial ratios of a group of similar stocks.

DE Stock Forecast Using PE Ratio and EPS

For this part of the analysis, I am looking at the history of key financial metrics for Deere & company to forecast the stock into 2022 and 2025. Most investors know that historical performance does not guarantee future performance, but it is useful to see how DE has been trending.

DE's Forward Earnings Per Share has been estimated to be 25.68. Furthermore, DE's Forward Price to Earnings Ratio has been estimated to be 13.86 (and we assume this remains the same) then we determine the DE stock forecast by multiple the P/E by the EPS to give us a stock price prediction of $355.92 per share

There are other ways to predict the price for DE but I would argue that P/E, EPS, and Earnings Growth are the most commonly used financial metrics by analysts and investors. This is why I used them to forecast DE's stock price.

DE Stock Forecast for 2025 Using Comparable Analysis

Who are DE's Competitors?

In order to undergo a comparable analysis, we need to outline DE's main competitors. These competitors need to have; a stock, valid financial ratios, operations similar to DE, and a market cap similar to DE (if possible).

By keeping this in mind, I found the following list of companies to be some of DE stock's closest competitors:

CAT, GE, BA, MMM, LMT, RTX, CNI, HON, ITW, and NSC

Using a Comparable Analysis to Determine a DE Price Forecast

DE's current PEG ratio is 0.14, compared to the average PEG ratio of DE's peers being 0.54. This implies that DE is undervalued and their share price should change by a factor of 288.34% to be at fair value (based on DE's PEG compared to the PEG of their peers).

DE's current P/E ratio is 16.3, compared to the average P/E ratio of DE's peers being 17.51. This implies that DE is undervalued and their share price should change by a factor of 7.44% to be at fair value (based on DE's P/E compared to the P/E of their peers).

DE's D/E ratio is 3.44, compared to the average D/E ratio of DE's peers being 2.62. This implies that DE is overvalued and their share price should change by a factor of -23.94% to be at fair value (based on DE's D/E compared to the D/E of their peers).

By taking an average of these 3 comparable analyses, we can come to a final valuation for the DE stock. By doing this I arrived at a potential upside for the DE stock of 90.61%, which (given DE's current price of $322.96) implies a price target of $615.59.

Are the DE Analyst Ratings in Agreeance With Our Conclusion?

Analyst Ratings have provided a relatively strong indicator of future price movement, which is why they are used to (hopefully) support our DE stock forecast. There are a total of 36 analyst ratings for DE, which are distributed as follows:

27 Buys

8 Holds

1 Sells

Overall, the majority of analysts are either bullish ("buy") on the DE Stock. This is great news for investors as the majority of analysts believe that the DE stock is below its fair market value, which indicates that their stock is undervalued. This is in agreeance with the conclusion that I arrived at via my own valuation methods.

DE Stock Forecast and Price Prediction Summary

Should you buy DE? Well, based on the overall DE stock forecast of $485.76 per share, and the current price of DE, I would agree with the analysts and say DE is a buy. Let me know what you think, happy to dive into other aspects of DE to help you make an informed investment decision.

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DE

Deere & Company

348.03

-19.96
-5.42%

Return

7.76%
Change % Since Posting
25.07
Change Since Posting
322.96
Price When Posted

Metrics

485.76
Target Price
8/ 10
Confidence
6-12 Months
Timeframe
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