Is Deere & Co. overvalued or undervalued?
As of November 21, 2024, Deere & Co. is considered overvalued with a very expensive valuation grade, reflected in its high P/E ratio of 49 and EV to EBITDA of 25.29, significantly exceeding industry averages, despite a strong year-to-date return of 21.33%.
As of 21 November 2024, Deere & Co. has moved from an expensive to a very expensive valuation grade. The company is currently considered overvalued. Key ratios include a P/E ratio of 49, a Price to Book Value of 10.69, and an EV to EBITDA of 25.29, all of which significantly exceed industry averages. In comparison to peers, Caterpillar, Inc. has a P/E of 26.12 and an EV to EBITDA of 20.39, while PACCAR, Inc. shows a P/E of 13.79 and an EV to EBITDA of 9.98, highlighting Deere's premium valuation. Despite a strong performance with a year-to-date return of 21.33%, which outpaces the S&P 500's 2.44%, the current valuation metrics suggest that the stock is not justified at its current price level.
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