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DE - Deere & Co Fair Value Calculator

Earnings Per Share : $
Default value for Earning per Share (without none-recurring items) is the TTM GAAP earning. Use the information at right side to adjust.
Growth Rate In the Next:
Years : %
The number of years in the growth stage, and the average annual growth rate. The default value for the growth rate is the average Earings Per Share (eps) growth rate of the past 10 years. If this growth rate is high than 20% a year, it is set to 20%.
Business Predictability  
Terminal Growth Rate: %
After the growth stage, it is more reasonable to set the terminal growth rate at the inflation rate. The terminal growth rate must be smaller than the discount rate to make the calculation converge.
Years of Terminal Growth:
The number of years for terminal value calculation. The value after this is considered zero. Default is 10.
Discount Rate:
A reasonable discount rate assumption should be at least the long term average return of the stock market, which is about 11%, because investors can always invest passively in an index fund and get an average return. Some investors use their expected rate of return, which is also reasonable. A typical discount rate can be anywhere between 10% - 20%.
Tangible Book Value:
Default Book Value is the tangible book value, which may underestimate or overestimate the real value
Growth Value:
Cumulative earnings during the growth stage discounted to current using the discount rate.
Terminal Value:
Cumulative earnings during the terminal stage discounted to current using the discount rate.
= Fair Value:
Intrinsic Value = Future Earnings at Growth Stage + Terminal Value.
Margin Of Safety:

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User Comments

ReplyRamzi.mrad@google - 1 year ago

I think--but I am not sure--that the reason is that these are two different calculations. On the Analysis page, what is being reported is the result of a "true" DCF calculation, i.e, the present value of the discounted CASH. On the DCF page, what is being calculated is actually the present value of the discounted EARNINGS, not cash. So in summary, one is a Discounted Cash value and the other is a Discounted Earnings value.
If on the DCF page you plug in the cash/share instead of the EPS (2.x instead of 8.x), you'll get a fair value of around $42 (Close to what is being reported on the Analysis bar chart).
Confusing... Maybe GuruFocus can validate?
ReplySrichardson - 1 year ago
Why is the Intrinsic (DE) for Deere (DE) on the Analysis page in the bar chart say $48.79 and the Intrinsic (DE) detailed breakdown say $167.42?

Thanks, Sam
ReplyVera - 1 year ago
It is fixed now.
ReplySpencerT - 1 year ago
I think they'll get to the bottom of this quickly.
ReplyGurufocus - 1 year ago
@Srichardson, we are contacting our data source for the problem.
ReplySrichardson - 1 year ago
Did Gurufocus answer this question?
ReplySpencerT - 1 year ago
Why would you show the DE price at 153.84 in November 2007? There was a 2 for 1 split in December 2007. Why wouldn't you adjust your data for this? And how does this affect the price at med. P/E etc. in your chart?
ReplyFrankk - 1 year ago
Hi, why does the chart for the "pretax EPS" not work?

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