Using the PEG framework with analyst consensus forward EPS growth of 15.9% plus 1.1% dividend yield, Deere & Company has a fair value of $282.89 based on NTM EPS (FY2026) of $17.83. The current PEG ratio is 2.06.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG works well for steady growers with predictable earnings.
| EPS Growth RateForward | 14.8% |
| Dividend Yield | +1.1% |
| Adjusted Growth (clamped 8–25%) | 15.9% |
| Fair P/E | 15.9x |
| NTM EPS (FY2026) | $17.83 |
| Fair Value | $282.89 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $18.50 | — | — |
| FY2026E | $17.83 | -3.6% | 10 |
| FY2027E | $23.01 | +29.1% | 10 |
| FY2028E | $27.97 | +21.5% | 6 |
3Y Forward EPS CAGR: 14.8%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $6.0B | $18.99 | — |
| FY2022 | $7.1B | $23.28 | +22.6% |
| FY2023 | $10.2B | $34.63 | +48.8% |
| FY2024 | $7.1B | $25.62 | -26.0% |
| FY2025 | $5.0B | $18.50 | -27.8% |
4Y Historical EPS CAGR: -0.7%
The PEG Fair Value uses the Price/Earnings-to-Growth framework. A stock is fairly valued when its P/E ratio equals its earnings growth rate (PEG = 1.0). This model adds dividend yield to the growth rate per the original PEGY formula.
Growth rate priority: analyst consensus forward EPS CAGR (when ≥ 3 analysts cover the stock), falling back to historical EPS CAGR. Using EPS rather than net income avoids distortion from share buybacks. The growth rate is clamped between 8% and 25% — below 8% would undervalue stable earners, while above 25% would overvalue unsustainable spikes.