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Deere & Co. – Farm Machinery and Equipment Manufacturing
Deere & Company is a world leader in providing advanced products, technology and services for customers whose work is revolutionizing agriculture and construction - those who cultivate, harvest, transform, enrich and build upon the land to meet the world's increasing need for food, fuel, shelter and infrastructure.
Analysis Results
Intrinsic Value $2,838.61
Latest Price $420.60
Relative Value 85% undervalued
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Cash Flow (Billions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 31.0%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 2.6%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 31.0%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2023 10.0 9.77
2024 13.1 12.5
2025 17.2 15.9
2026 22.5 20.3
2027 29.5 26.0
Terminal Value

Assuming the company was sold after the projection period at an exit multiple of 30, the terminal value of the company would be 886 billion. This corresponds to a present value of 759 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 84.5 billion. Adding in the terminal value gives a total present value of 844 billion.

There are presently 297.0 million outstanding shares, so the intrinsic value per share is 2838.61.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 65,779,000,000
Current Cash 3,828,000,000
Current Liabilities 58,502,000,000
Current Debt 1,040,000,000
Non-Cash Working Capital (NCWC) 4,489,000,000
Change in NCWC 1,770,000,000
EBIT 9,367,000,000
Tax Provision 2,007,000,000
Depreciation and Amortization 1,895,000,000
Capital Expenditure -3,788,000,000
Unlevered Free Cash Flow 7,186,479,041
Current Assets 59,957,000,000
Current Cash 7,191,000,000
Current Liabilities 51,566,000,000
Current Debt 1,519,000,000
Non-Cash Working Capital (NCWC) 2,719,000,000
Change in NCWC 1,766,000,000
EBIT 7,852,000,000
Tax Provision 1,658,000,000
Depreciation and Amortization 2,050,000,000
Capital Expenditure -2,580,000,000
Unlevered Free Cash Flow 7,380,192,575
Current Assets 52,581,000,000
Current Cash 6,152,000,000
Current Liabilities 45,794,000,000
Current Debt 318,000,000
Non-Cash Working Capital (NCWC) 953,000,000
Change in NCWC 2,061,000,000
EBIT 4,542,000,000
Tax Provision 1,082,000,000
Depreciation and Amortization 2,118,000,000
Capital Expenditure -2,656,000,000
Unlevered Free Cash Flow 4,783,528,292
Current Assets 50,754,000,000
Current Cash 3,176,000,000
Current Liabilities 49,717,000,000
Current Debt 1,031,000,000
Non-Cash Working Capital (NCWC) -1,108,000,000
Change in NCWC -12,500,000
EBIT 4,365,000,000
Tax Provision 852,000,000
Depreciation and Amortization 2,019,000,000
Capital Expenditure -3,449,000,000
Unlevered Free Cash Flow 2,017,418,471
Current Assets 48,380,000,000
Current Cash 3,203,000,000
Current Liabilities 47,782,100,000
Current Debt 1,509,600,000
Non-Cash Working Capital (NCWC) -1,095,500,000
Change in NCWC 1,696,600,000
EBIT 4,395,300,000
Tax Provision 1,727,000,000
Depreciation and Amortization 1,927,100,000
Capital Expenditure -2,950,100,000
Unlevered Free Cash Flow 3,216,384,295
Current Assets 48,114,300,000
Current Cash 8,188,600,000
Current Liabilities 43,093,300,000
Current Debt 375,500,000
Non-Cash Working Capital (NCWC) -2,792,100,000
Change in NCWC -2,461,400,000
EBIT 3,394,000,000
Tax Provision 971,000,000
Depreciation and Amortization 1,715,500,000
Capital Expenditure -2,592,300,000
Unlevered Free Cash Flow -996,998,134
Current Assets 41,004,900,000
Current Cash 3,174,700,000
Current Liabilities 38,409,900,000
Current Debt 249,000,000
Non-Cash Working Capital (NCWC) -330,700,000
Change in NCWC -202,200,000
EBIT 2,472,100,000
Tax Provision 700,000,000
Depreciation and Amortization 1,559,800,000
Capital Expenditure -2,955,100,000
Unlevered Free Cash Flow 95,670,399
Current Assets 42,135,800,000
Current Cash 2,947,700,000
Current Liabilities 39,780,900,000
Current Debt 464,300,000
Non-Cash Working Capital (NCWC) -128,500,000
Change in NCWC -2,366,400,000
EBIT 3,053,800,000
Tax Provision 840,000,000
Depreciation and Amortization 1,382,400,000
Capital Expenditure -694,000,000
Unlevered Free Cash Flow 453,400,862
Current Assets 46,044,400,000
Current Cash 3,269,600,000
Current Liabilities 40,971,000,000
Current Debt 434,100,000
Non-Cash Working Capital (NCWC) 2,237,900,000
Change in NCWC -1,534,500,000
EBIT 5,079,200,000
Tax Provision 1,626,500,000
Depreciation and Amortization 1,306,500,000
Capital Expenditure -2,659,300,000
Unlevered Free Cash Flow 467,126,773
Current Assets 45,607,800,000
Current Cash 4,230,500,000
Current Liabilities 38,685,300,000
Current Debt 1,080,400,000
Non-Cash Working Capital (NCWC) 3,772,400,000
Change in NCWC 1,737,600,000
EBIT 5,780,600,000
Tax Provision 1,945,900,000
Depreciation and Amortization 1,140,300,000
Capital Expenditure -2,375,300,000
Unlevered Free Cash Flow 4,231,869,729
Current Assets 42,719,000,000
Current Cash 5,009,400,000
Current Liabilities 36,099,600,000
Current Debt 424,800,000
Non-Cash Working Capital (NCWC) 2,034,800,000
Change in NCWC 234,700,000
EBIT 4,962,100,000
Tax Provision 1,659,400,000
Depreciation and Amortization 1,004,200,000
Capital Expenditure -2,121,000,000
Unlevered Free Cash Flow 2,339,541,589

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