Is Deere & Co. overvalued or undervalued?

As of 30 June 2025, the valuation grade for Deere & Co. has moved from expensive to very expensive, indicating a significant increase in perceived overvaluation. The company is currently considered overvalued based on its high valuation ratios, including a P/E ratio of 49, a Price to Book Value of 10.69, and an EV to EBITDA of 25.29. In comparison, peers such as Caterpillar, Inc. and Cummins, Inc. have lower P/E ratios of 32.72 and 28.99, respectively, suggesting that Deere & Co. is trading at a premium relative to its industry counterparts.
Despite a year-to-date return of 12.37%, which slightly outperformed the S&P 500's return of 12.22%, the substantial valuation ratios and the recent grade change reinforce the view that Deere & Co. is overvalued in the current market environment.