Deere & Company

LSE:0R2P Stock Report

Market Cap: US$129.2b

Deere Valuation

Is 0R2P undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 0R2P when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Discounted Cash Flow
Simply Wall St
US$646.72
Fair Value
26.9% undervalued intrinsic discount
22
Number of Analysts

Below Fair Value: 0R2P ($472.79) is trading below our estimate of fair value ($646.72)

Significantly Below Fair Value: 0R2P is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 0R2P?

Key metric: As 0R2P is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 0R2P. This is calculated by dividing 0R2P's market cap by their current earnings.
What is 0R2P's PE Ratio?
PE Ratio18.3x
EarningsUS$7.10b
Market CapUS$129.18b

Price to Earnings Ratio vs Peers

How does 0R2P's PE Ratio compare to its peers?

The above table shows the PE ratio for 0R2P vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average21.7x
RR. Rolls-Royce Holdings
22.5x2.7%UK£52.5b
BA. BAE Systems
19.6x8.3%UK£36.0b
AHT Ashtead Group
17.5x10.8%UK£21.8b
WEIR Weir Group
27.3x18.4%UK£6.0b
0R2P Deere
18.3x4.1%US$129.2b

Price-To-Earnings vs Peers: 0R2P is good value based on its Price-To-Earnings Ratio (18.3x) compared to the peer average (21.7x).

Price to Earnings Ratio vs Industry

How does 0R2P's PE Ratio compare vs other companies in the European Machinery Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
0R2P 18.3xIndustry Avg. 17.7xNo. of Companies29PE01224364860+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 0R2P is expensive based on its Price-To-Earnings Ratio (18.3x) compared to the European Machinery industry average (17.9x).

Price to Earnings Ratio vs Fair Ratio

What is 0R2P's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

0R2P PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio18.3x
Fair PE Ratio25.3x

Price-To-Earnings vs Fair Ratio: 0R2P is good value based on its Price-To-Earnings Ratio (18.3x) compared to the estimated Fair Price-To-Earnings Ratio (25.3x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst 0R2P forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$474.84
US$474.43
-0.09%
10.4%US$550.00US$341.21n/a22
Feb ’26US$475.44
US$473.07
-0.5%
10.3%US$550.00US$341.21n/a22
Jan ’26US$421.51
US$464.48
+10.2%
11.3%US$550.00US$341.21n/a22
Dec ’25US$465.90
US$453.81
-2.6%
11.6%US$538.00US$341.21n/a21
Nov ’25US$401.15
US$414.46
+3.3%
10.2%US$496.00US$340.00n/a22
Oct ’25US$419.27
US$410.01
-2.2%
9.8%US$495.00US$340.00n/a22
Sep ’25US$380.34
US$414.49
+9.0%
9.2%US$495.00US$340.00n/a22
Aug ’25US$357.62
US$418.27
+17.0%
8.8%US$495.00US$341.00n/a22
Jul ’25US$364.59
US$421.79
+15.7%
8.8%US$495.00US$341.00n/a24
Jun ’25US$370.50
US$423.52
+14.3%
8.9%US$495.00US$339.00n/a23
May ’25US$386.29
US$420.98
+9.0%
9.1%US$495.00US$344.00n/a26
Apr ’25US$411.07
US$418.10
+1.7%
8.5%US$494.00US$344.00n/a26
Mar ’25US$367.45
US$415.44
+13.1%
7.7%US$483.00US$344.00n/a26
Feb ’25US$393.31
US$424.32
+7.9%
8.2%US$493.00US$352.00US$475.4425
Jan ’25US$399.05
US$422.33
+5.8%
8.4%US$493.00US$360.00US$421.5124
Dec ’24US$368.78
US$424.66
+15.2%
8.8%US$493.00US$360.00US$465.9024
Nov ’24US$371.17
US$438.47
+18.1%
8.6%US$510.00US$379.00US$401.1524
Oct ’24US$376.48
US$442.20
+17.5%
8.4%US$510.00US$379.00US$419.2724
Sep ’24US$418.46
US$450.15
+7.6%
9.9%US$551.00US$379.00US$380.3424
Aug ’24US$432.67
US$450.45
+4.1%
11.5%US$560.00US$367.00US$357.6224
Jul ’24US$404.80
US$444.95
+9.9%
11.4%US$560.00US$367.00US$364.5924
Jun ’24US$353.17
US$446.68
+26.5%
11.0%US$560.00US$367.00US$370.5025
May ’24US$376.84
US$473.98
+25.8%
10.0%US$591.00US$369.00US$386.2925
Apr ’24US$410.60
US$472.74
+15.1%
9.8%US$591.00US$369.00US$411.0725
Mar ’24US$422.28
US$474.27
+12.3%
9.9%US$591.00US$369.00US$367.4524
Feb ’24US$421.49
US$466.70
+10.7%
11.1%US$582.00US$359.00US$393.3123
Analyst Price Target
Consensus Narrative from 22 Analysts
US$470.68
Fair Value
0.4% overvalued intrinsic discount
22
Number of Analysts

Analyst Forecast: Target price is lower than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/02/12 00:37
End of Day Share Price 2025/02/12 00:00
Earnings2024/10/27
Annual Earnings2024/10/27

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Deere & Company is covered by 58 analysts. 14 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
John EadeArgus Research Company
Igor MaryasisAvondale Partners
Mircea DobreBaird