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Deere & Company (DE) — WACC Analysis

WACC Breakdown

Deere & Company (DE) has a weighted average cost of capital (WACC) of 9.1%. The cost of equity is 8.7%, derived from a beta of 0.74 and a risk-free rate of 5.2%. The after-tax cost of debt is 13.4%. The capital structure is 91.1% equity and 8.9% debt.

Interpretation

A WACC of 9.1% is moderate, reflecting the market's balanced risk assessment of Deere & Company.

Investors can compare DE's WACC of 9.1% against industry peers to gauge its relative financing costs. A beta of 0.74 reflects the stock's volatility relative to the broader market.

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VALUATION

DE WACC: 9.11% for Deere & Company

Current inputs imply a 8.69% cost of equity and a 16.96% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
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[02]
WACC Calculation Process
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Market Data Loaded
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Company Data Fetched
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Beta Calculated (5Y)
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Inputs Auto-Populated
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WACC Calculated
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Step 2: Enter Ticker Symbol
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Step 4: Review Auto-Populated WACC Inputs

Values are automatically populated from real data. You can adjust them manually if needed.

4.30%
1.000
4.23%
5.00%
21.00%
70.00%
Debt: 30.00%Equity: 70.00%

Please enter a valid company ticker to calculate WACC

Deere & Company Common Stock (DE) WACC Results
Weighted Average Cost of Capital
9.11%
Cost of Equity
8.69%
Risk-Free Rate5.19%
Beta0.74
Market Risk Premium4.23%
Cost of Debt
13.40%
Pre-Tax Cost of Debt16.96%
Tax Rate21.00%
Tax Shield3.56%
Capital Structure
Equity: 91.11%($175.44B)
Debt: 8.89%($17.11B)
Equity Component
7.91%
91.11% × 8.69%
Debt Component
1.19%
8.89% × 13.40%

Deere & Company (DE) WACC in context

Deere & Company (DE) currently screens with an estimated WACC of 9.11%. That blends a 8.69% cost of equity, a 16.96% pre-tax cost of debt, and a 91.11% equity weight into the discount rate you would typically use in a DCF model.

falls into a common range for established public companies and is a practical DCF starting point.

What DE WACC implies

A 9.11% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates DE

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.74 and equity accounts for 91.11% of capital.

What to do next

Validate business quality on the company page, then carry the same discount-rate assumptions into the DCF page to test fair value sensitivity.

Disclaimer: This is not financial advice. Data sourced from SEC EDGAR and Polygon.io. Past performance does not guarantee future results. Always conduct your own research before making investment decisions.