DeereDE -0.44%89 Debt-to-EBITDA is 4.46 as of Apr. 2026, which is 22% below its 10-year median of 5.69. GuruFocus rates DE with a GF Score™ of 89/100 and a GF Value™ of $373.85 (Significantly Overvalued). The stock has 1 warning sign investors should review. Among 174 Farm & Heavy Construction Machinery companies, Deere ranks worse than 86.21% on this metric.
Debt-to-EBITDA measures a company's ability to pay off its debt.
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
The historical rank and industry rank for Deere's Debt-to-EBITDA or its related term are showing as below:
DE'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: 3.65 Med: 5.69 Max: 7.83
Current: 5.6
During the past 13 years, the highest Debt-to-EBITDA Ratio of Deere was 7.83. The lowest was 3.65. And the median was 5.69.
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.
According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
Deere Debt-to-EBITDA Related Terms
Deere Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for Deere's Debt-to-EBITDA can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Farm & Heavy Construction Machinery subindustry, Deere's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Deere Debt-to-EBITDA vs Farm & Heavy Construction Machinery Industry
For the Farm & Heavy Construction Machinery industry and Industrials sector, Deere's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Deere's Debt-to-EBITDA falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data,
the EBITDA data used here is four times the quarterly (Apr. 2026) EBITDA data.
Deere (DE) has a Debt-to-EBITDA of 4.46 as of Apr. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Deere. This is 22% below median its historical median of 5.69. Over the past decade, Deere's Debt-to-EBITDA has ranged from 3.65 to 7.83. According to the industry distribution chart, Deere ranks #150 out of 174 companies in the Farm & Heavy Construction Machinery industry, placing it in the top 86.2%.
Is Deere's Debt-to-EBITDA too high?
Deere's current Debt-to-EBITDA of 4.46 is 22% below median its 10-year median of 5.69. Over the past 10 years, this metric has ranged from a low of 3.65 to a high of 7.83. The Farm & Heavy Construction Machinery industry median Debt-to-EBITDA is 1.68. Deere's value of 4.46 is 165.5% above this industry median. Based on the distribution chart, Deere ranks #150 out of 174 companies in the Farm & Heavy Construction Machinery industry, which is in the bottom quartile relative to peers. Overall, Deere has a GF Score™ of 89/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Deere's Debt-to-EBITDA compare to PCAR and CNH?
According to the Farm & Heavy Construction Machinery industry distribution chart, Deere ranks #150 out of 174 companies for Debt-to-EBITDA. This places Deere in the lower half of its industry. The industry median Debt-to-EBITDA is 1.68. Deere's value of 4.46 is 165.5% above this benchmark. Historically, Deere's own Debt-to-EBITDA has ranged from 3.65 to 7.83 over the past decade. While the company's 10-year median is 5.69 vs. the industry median of 1.68, Deere has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-EBITDA for a Farm & Heavy Construction Machinery company?
The median Debt-to-EBITDA among Farm & Heavy Construction Machinery companies is 1.68, based on 174 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Deere's current Debt-to-EBITDA of 4.46 is 165.5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Deere. For the Farm & Heavy Construction Machinery industry, the median Debt-to-EBITDA is 1.68 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Deere's current Debt-to-EBITDA is 4.46, which is 22% below median its own 10-year median of 5.69. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Deere stock overvalued right now?
Based on GuruFocus' analysis, Deere (DE) is currently considered Significantly Overvalued. The stock's GF Value™ is $373.85, compared to a current price of $584.27 — trading 56.3% above its estimated fair value. The current Debt-to-EBITDA is 4.46, which is 22% below median its 10-year median of 5.69 and 165.5% above the Farm & Heavy Construction Machinery industry median of 1.68. Deere's overall GF Score™ is 89/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For Deere (DE), the current Debt-to-EBITDA is 4.46 as of Apr. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Deere (DE) Overvalued in 2026?
Based on GuruFocus' analysis, Deere stock appears to be overvalued.
The current stock price of $584.27 is trading 56.3% above its estimated GF Value™ of $373.85.
GuruFocus considers Deere to be Significantly Overvalued.
Key valuation signals for DE:
Debt-to-EBITDA: 4.46 (22% below median its 10-year median of 5.69)
GF Value™: $373.85 vs. price of $584.27 (56.3% above fair value)
Industry Position: 165.5% above the Farm & Heavy Construction Machinery median (#150 of 174)
No single metric tells the full story. See the DE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Deere is the world's leading manufacturer of agricultural equipment and a major producer of construction machinery. The company is divided into four reporting segments: production & precision agriculture, or PPA, small agriculture & turf, or SAT, construction & forestry, or CF, and financial services, or FS, its captive finance subsidiary. The core PPA business is the largest contributor to sales and profits by far. Geographically, Deere sales are 60% US/Canada, 17% Europe, 14% Latin America, and 9% rest of the world. Deere goes to market through a robust dealer network that includes over 2,000 dealer locations in North America with reach into over 100 countries. John Deere Financial provides retail financing for machinery to its customers and wholesale financing for dealers.
89GF Score
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