Latest Ratios: P/E Ratio 38.0x · EV/EBITDA 23.1x · ROE 20.5%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $189.8B | $125.4B | $113.0B | $106.0B | $121.6B | $107.5B | $71.5B | $55.8B | $44.3B | $43.0B | $28.0B |
| Enterprise Value | $245.5B | $181.1B | $171.2B | $162.3B | $169.0B | $148.2B | $110.8B | $97.3B | $82.7B | $73.7B | $59.2B |
| P/E Ratio → | 38.01 | 24.95 | 15.92 | 10.43 | 17.05 | 18.03 | 26.00 | 17.16 | 18.71 | 19.89 | 18.36 |
| P/S Ratio | 4.25 | 2.81 | 2.24 | 1.76 | 2.37 | 2.50 | 2.06 | 1.45 | 1.22 | 1.50 | 1.08 |
| P/B Ratio | 7.35 | 4.82 | 4.93 | 4.84 | 5.97 | 5.83 | 5.53 | 4.88 | 3.92 | 4.49 | 4.27 |
| P/FCF | 58.74 | 38.82 | 25.52 | 25.73 | 133.43 | 20.89 | 14.82 | — | — | — | 34.55 |
| P/OCF | 25.45 | 16.82 | 12.25 | 12.35 | 25.87 | 13.91 | 9.56 | 16.36 | 24.35 | 19.53 | 7.43 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 4.05 | 3.39 | 2.69 | 3.30 | 3.44 | 3.19 | 2.54 | 2.27 | 2.57 | 2.29 |
| EV / EBITDA | 23.06 | 17.01 | 12.64 | 9.78 | 15.47 | 15.26 | 17.08 | 14.20 | 13.12 | 15.85 | 15.58 |
| EV / EBIT | 29.17 | 19.21 | 13.64 | 10.49 | 16.58 | 17.24 | 21.59 | 17.52 | 15.67 | 18.18 | 19.83 |
| EV / FCF | — | 56.05 | 38.65 | 39.38 | 185.49 | 28.80 | 22.94 | — | — | — | 73.20 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 36.5% | 36.5% | 38.6% | 37.0% | 30.7% | 31.9% | 31.3% | 29.6% | 29.3% | 30.0% | 29.1% |
| Operating Margin | 18.8% | 18.8% | 22.6% | 24.2% | 17.6% | 17.8% | 12.6% | 12.6% | 12.0% | 10.2% | 8.7% |
| Net Profit Margin | 11.3% | 11.3% | 14.1% | 16.9% | 13.9% | 13.9% | 7.9% | 8.5% | 6.5% | 7.5% | 5.9% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 20.5% | 20.5% | 31.7% | 48.1% | 36.8% | 38.0% | 22.6% | 28.6% | 22.7% | 26.8% | 22.9% |
| ROA | 4.7% | 4.7% | 6.7% | 10.5% | 8.2% | 7.5% | 3.7% | 4.5% | 3.5% | 3.5% | 2.6% |
| ROIC | 7.8% | 7.8% | 10.8% | 15.0% | 10.7% | 10.3% | 6.2% | 7.1% | 7.3% | 5.6% | 4.4% |
| ROCE | 11.7% | 11.7% | 16.8% | 23.6% | 15.5% | 13.9% | 8.6% | 10.2% | 9.7% | 7.0% | 5.7% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 2.46 | 2.46 | 2.86 | 2.91 | 2.56 | 2.64 | 3.58 | 3.97 | 3.74 | 4.18 | 5.44 |
| Debt / EBITDA | 6.01 | 6.01 | 4.83 | 3.84 | 4.78 | 5.02 | 7.14 | 6.62 | 6.71 | 8.62 | 9.37 |
| Net Debt / Equity | — | 2.14 | 2.54 | 2.57 | 2.33 | 2.21 | 3.03 | 3.63 | 3.39 | 3.21 | 4.78 |
| Net Debt / EBITDA | 5.23 | 5.23 | 4.29 | 3.39 | 4.34 | 4.19 | 6.05 | 6.05 | 6.09 | 6.61 | 8.23 |
| Debt / FCF | — | 17.23 | 13.13 | 13.65 | 52.06 | 7.91 | 8.13 | — | — | — | 38.65 |
| Interest Coverage | 2.97 | 2.97 | 3.75 | 6.31 | 9.59 | 8.66 | 4.11 | 3.79 | 4.38 | 4.51 | 3.91 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 2.31 | 2.31 | 2.13 | 1.96 | 2.02 | 2.22 | 2.29 | 2.06 | 1.93 | 2.15 | 2.18 |
| Quick Ratio | 2.08 | 2.08 | 1.94 | 1.75 | 1.75 | 1.96 | 2.07 | 1.81 | 1.67 | 1.97 | 1.99 |
| Cash Ratio | 0.30 | 0.30 | 0.23 | 0.22 | 0.17 | 0.33 | 0.34 | 0.19 | 0.18 | 0.45 | 0.26 |
| Asset Turnover | — | 0.42 | 0.47 | 0.58 | 0.57 | 0.51 | 0.46 | 0.53 | 0.52 | 0.43 | 0.45 |
| Inventory Turnover | 3.78 | 3.78 | 4.31 | 4.62 | 4.16 | 4.29 | 4.77 | 4.52 | 4.19 | 5.13 | 5.49 |
| Days Sales Outstanding | — | 466.77 | 421.67 | 355.92 | 348.62 | 362.12 | 406.34 | 369.52 | 361.44 | 423.76 | 448.97 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 0.9% | 1.4% | 1.4% | 1.3% | 1.1% | 1.0% | 1.3% | 1.7% | 1.8% | 1.8% | 2.7% |
| Payout Ratio | 34.2% | 34.2% | 22.6% | 14.0% | 18.4% | 17.4% | 34.8% | 29.0% | 34.0% | 35.4% | 50.0% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 2.6% | 4.0% | 6.3% | 9.6% | 5.9% | 5.5% | 3.8% | 5.8% | 5.3% | 5.0% | 5.4% |
| FCF Yield | 1.7% | 2.6% | 3.9% | 3.9% | 0.7% | 4.8% | 6.7% | — | — | — | 2.9% |
| Buyback Yield | 0.6% | 0.9% | 3.5% | 6.8% | 3.0% | 2.4% | 1.0% | 2.2% | 2.2% | 0.0% | 0.7% |
| Total Shareholder Yield | 1.5% | 2.3% | 5.0% | 8.2% | 4.0% | 3.3% | 2.4% | 3.9% | 4.0% | 1.8% | 3.5% |
| Shares Outstanding | — | $272M | $277M | $294M | $306M | $314M | $317M | $321M | $327M | $323M | $317M |
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying DE stock.
Deere & Company's current P/E ratio is 38.0x. The historical average is 16.9x. This places it at the 100th percentile of its historical range.
Deere & Company's current EV/EBITDA is 23.1x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 12.0x.
Deere & Company's return on equity (ROE) is 20.5%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 25.9%.
Based on historical data, Deere & Company is trading at a P/E of 38.0x. This is at the 100th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Deere & Company's current dividend yield is 0.90% with a payout ratio of 34.2%.
Deere & Company has 36.5% gross margin and 18.8% operating margin. Operating margin between 10-20% is typical for established companies.
Deere & Company's Debt/EBITDA ratio is 6.0x, indicating high leverage. A ratio above 4x may signal elevated financial risk.
Key Metrics
Top Statement Risk
Cyclical demand and margin compression
Metrics are mathematically derived from official filings.
Premium Valuation Amidst Cyclical Earnings
Deere's forward P/E of 38.26 and EV/EBITDA of 20.65 represent a significant premium to peers like CNH Industrial (12.40 EV/EBITDA) and AGCO (11.19), suggesting the market is pricing in a durable technology-driven moat rather than a cyclical recovery.
The valuation multiples appear to embed expectations of sustained high returns on capital that are not currently supported by the reported ROIC of 2.3% in the latest quarter. This disconnect implies the market is either anticipating a sharp cyclical upturn or is assigning a permanent 'tech-industrial' premium for Deere's precision agriculture ecosystem. Investors should monitor whether the PEG ratio of 2.30 can compress through earnings growth or if the multiple will contract as the cycle matures.
Margin Resilience Masks Cyclical Volatility
Gross margin has recovered to 37.0% in 2026Q3 from a low of 32.6% in 2025Q4, indicating effective pricing power, yet the net margin of 10.9% remains well below the 15.8% peak seen in 2024Q2, highlighting the impact of operating leverage and higher interest costs.
The decomposition shows that operating margin expansion from 15.7% to 20.6% over two quarters is the primary driver of the gross-to-net margin improvement, suggesting cost discipline and favorable product mix. However, the net margin's failure to fully recover to prior highs, despite strong gross margins, may indicate that the Financial Services segment's profitability is being pressured by the rising rate environment, compressing consolidated returns.
Capital Efficiency in Cyclical Trough
Return on Invested Capital (ROIC) has declined from a peak of 3.4% in 2024Q2 to 2.3% in 2026Q3, a trend that appears driven by both margin compression and a less efficient deployment of the expanded equity base.
The ROIC trend is concerning as it suggests the company is not currently compounding capital at a rate that justifies its premium valuation. The decline is more severe than the drop in ROE (from 10.5% to 5.0%), indicating that the increase in financial leverage from the finance arm is not sufficiently offsetting the drop in operating returns. This warrants investigation into whether the capital-intensive 'Smart Industrial' strategy is temporarily diluting returns or signaling a structural shift in the business model.
Working Capital Swings Dominate Cash Cycle
The Cash Conversion Cycle (CCC) has shown extreme volatility, swinging from a negative 16.4% FCF margin in 2026Q1 to a positive 15.4% in 2026Q3, driven primarily by massive swings in Days Sales Outstanding (DSO) and inventory management.
The DSO metric is particularly erratic, ranging from 73 days to 638 days over the period, which likely reflects the consolidation of the Financial Services segment's receivables rather than core operational efficiency. This volatility obscures the true working capital efficiency of the manufacturing business. The improvement in CCC from 380 days in 2026Q1 to 67 days in 2026Q3 suggests a successful drawdown of inventory and receivables, but the pattern indicates this is a seasonal or cyclical reset rather than a structural improvement.
The Misleading Debt-to-Equity Ratio
The reported Debt-to-Equity ratio of 2.29 is the most commonly misapplied metric for Deere, as it dramatically understates the true leverage of the core industrial business by including the massive, debt-funded balance sheet of the captive Financial Services arm.
This ratio obscures the significant financial risk and capital intensity of the manufacturing operations. Analysts should instead focus on the Debt/EBITDA ratio of 24.76 and interest coverage of 3.65, which provide a more accurate picture of the consolidated entity's debt serviceability. For a true assessment of industrial leverage, one must de-consolidate the financial arm, a nuance that the headline D/E ratio completely fails to capture.