Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Deere & Company (DE)

Company Dividend Discount ModelIndustry: Agricultural - MachinerySector: Industrials

Valuation Snapshot

Stable Growth$3,123.72 - $3,680.27$3,448.95
Multi-Stage$774.14 - $848.25$810.51
Blended Fair Value$2,129.73
Current Price$461.63
Upside361.35%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022202120202019201820172016
DPS12.46%7.74%6.335.915.254.833.833.523.472.972.812.80
YoY Growth--7.17%12.47%8.68%26.25%8.79%1.38%17.03%5.47%0.35%-6.74%
Dividend Yield--1.37%1.22%1.32%1.15%1.02%1.20%2.19%1.90%1.66%2.62%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)5,027.00
(-) Cash Dividends Paid (M)1,720.00
(=) Cash Retained (M)3,307.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)1,005.40628.38377.03
Cash Retained (M)3,307.003,307.003,307.00
(-) Cash Required (M)-1,005.40-628.38-377.03
(=) Excess Retained (M)2,301.602,678.632,929.98
(/) Shares Outstanding (M)271.65271.65271.65
(=) Excess Retained per Share8.479.8610.79
LTM Dividend per Share6.336.336.33
(+) Excess Retained per Share8.479.8610.79
(=) Adjusted Dividend14.8016.1917.12
WACC / Discount Rate5.48%5.48%5.48%
Growth Rate5.50%6.50%7.50%
Fair Value$3,123.72$3,448.95$3,680.27
Upside / Downside576.67%647.12%697.23%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)5,027.005,353.765,701.756,072.366,467.076,887.437,094.05
Payout Ratio34.22%45.37%56.53%67.69%78.84%90.00%92.50%
Projected Dividends (M)1,720.002,429.123,223.154,110.155,098.836,198.686,561.99

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate5.48%5.48%5.48%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)2,281.282,302.912,324.53
Year 2 PV (M)2,842.782,896.922,951.58
Year 3 PV (M)3,404.483,502.213,601.79
Year 4 PV (M)3,966.394,118.924,275.82
Year 5 PV (M)4,528.514,747.234,974.33
PV of Terminal Value (M)193,272.79202,607.94212,300.37
Equity Value (M)210,296.23220,176.14230,428.42
Shares Outstanding (M)271.65271.65271.65
Fair Value$774.14$810.51$848.25
Upside / Downside67.70%75.58%83.75%

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