Deere & Company

AI-generated fair value estimate for this company.

Method: 10-year unlevered FCF DCF: $7.0B normalized FCF base (average of FY2021-24 actual FCF of $9.0B, $5.7B, $9.1B, $9.5B, smoothing the FY2025 ag-downturn trough of $3.23B); 6% annual FCF growth years 1-5; 4% years 6-10; 9% discount rate; 2.5% terminal growth; ~$8B net debt (Equipment Operations segment only, excluding ~$50B matched-book Financial Services debt backed by customer financing receivables); 269.63M diluted shares.

Reasoning: Deere is a cyclical industrial compounder, so FCF was normalized across the full ag cycle rather than the FY2025 trough; captive-finance debt was excluded from the net-debt deduction since it is self-funding and matched by financing receivables, avoiding double-penalizing the core equipment business.