Latest Ratios: P/E Ratio 32.6x · EV/EBITDA 20.5x · 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 | $162.9B | $125.4B | $113.0B | $106.0B | $121.6B | $107.5B | $71.5B | $55.8B | $44.3B | $43.0B | $28.0B |
| Enterprise Value | $218.6B | $181.1B | $171.2B | $162.3B | $169.0B | $148.2B | $110.8B | $97.3B | $82.7B | $73.7B | $59.2B |
| P/E Ratio → | 32.63 | 24.95 | 15.92 | 10.43 | 17.05 | 18.03 | 26.00 | 17.16 | 18.71 | 19.89 | 18.36 |
| P/S Ratio | 3.65 | 2.81 | 2.24 | 1.76 | 2.37 | 2.50 | 2.06 | 1.45 | 1.22 | 1.50 | 1.08 |
| P/B Ratio | 6.31 | 4.82 | 4.93 | 4.84 | 5.97 | 5.83 | 5.53 | 4.88 | 3.92 | 4.49 | 4.27 |
| P/FCF | 50.43 | 38.82 | 25.52 | 25.73 | 133.43 | 20.89 | 14.82 | — | — | — | 34.55 |
| P/OCF | 21.84 | 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 | 20.54 | 17.01 | 12.64 | 9.78 | 15.47 | 15.26 | 17.08 | 14.20 | 13.12 | 15.85 | 15.58 |
| EV / EBIT | 25.97 | 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 | 1.0% | 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 | 3.1% | 4.0% | 6.3% | 9.6% | 5.9% | 5.5% | 3.8% | 5.8% | 5.3% | 5.0% | 5.4% |
| FCF Yield | 2.0% | 2.6% | 3.9% | 3.9% | 0.7% | 4.8% | 6.7% | — | — | — | 2.9% |
| Buyback Yield | 0.7% | 0.9% | 3.5% | 6.8% | 3.0% | 2.4% | 1.0% | 2.2% | 2.2% | 0.0% | 0.7% |
| Total Shareholder Yield | 1.7% | 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 |
Cyclical demand and leverage
According to current market data, DE trades at a forward P/E of 33.93, a significant premium compared to traditional machinery peers, suggesting investors are pricing in a transition toward a software-integrated business model rather than a purely cyclical industrial hardware manufacturer.
The elevated P/E and EV/EBITDA multiples imply that the market expects DE to sustain higher margins through its precision agriculture ecosystem. However, this valuation appears vulnerable if the company fails to demonstrate that its digital solutions can decouple revenue growth from the volatile agricultural commodity cycle.
Based on reported financial figures, ROIC has remained compressed, fluctuating between 1.4% and 3.4% over the last ten quarters, which indicates that the company's heavy capital intensity and cyclical downturns are currently hindering its ability to generate superior returns on invested capital.
The low ROIC relative to historical peaks suggests that the company is struggling to maintain efficiency as it absorbs the costs of its 'Smart Industrial' strategy. Investors should monitor whether these returns can expand as the company shifts toward higher-margin software and service-based revenue streams.
As reported in recent quarterly filings, the cash conversion cycle has exhibited extreme volatility, peaking at 727 days in 2025Q1, which highlights the significant challenges in managing inventory and receivables during periods of shifting agricultural demand and dealer inventory accumulation.
The erratic nature of the CCC suggests that DE's working capital management is highly sensitive to the timing of equipment sales and the financing terms provided to customers. This inefficiency may indicate that the company is forced to carry higher inventory levels to support its dealer network during cyclical troughs.
Based on the latest financial statements, the current ratio dropped sharply to 0.79 in 2026Q2 from 2.13 in 2024Q4, signaling a potential shift in the composition of short-term liabilities or a tightening of liquidity buffers within the captive finance segment.
This rapid decline in liquidity warrants further investigation into whether the company is facing increased pressure to fund its financial services arm. The reliance on short-term financing to support equipment sales may leave the company exposed if credit markets tighten or if agricultural income declines further.
As indicated by the consolidated financial data, the P/B ratio of 6.41 is frequently misapplied to DE, as it fails to account for the significant assets and liabilities held within the captive finance arm, which distorts the true valuation of the core manufacturing business.
Analysts should instead focus on de-consolidated metrics that isolate the industrial operations from the financial services segment to gain a clearer picture of the company's true capital intensity. Relying on headline P/B or consolidated debt ratios may lead to an inaccurate assessment of the company's financial health and risk profile.
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 32.6x. The historical average is 16.9x. This places it at the 93th percentile of its historical range.
Deere & Company's current EV/EBITDA is 20.5x. 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 32.6x. This is at the 93th 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 1.05% 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.