Deere & Co (DE) is overvalued and Paccar Inc (PCAR) is slightly undervalued.
Against our estimates of intrinsic value, PCAR trades at the wider discount: a margin of safety of +6%, against -202% for DE.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 8.2% (average of 3 methods) values the shares at $232.98; the price of $703.12 is 202% above that value, and 79% of that value comes from beyond year five.
Leak Score 43/100 on 10 of 12 signals
Discounting its cash flows at 9.5% (average of 3 methods) values the shares at $121.43; the price of $113.90 is 6% below that value, and 76% of that value comes from beyond year five.
Leak Score 56/100 on 9 of 12 signals
| Metric | DE | PCAR |
|---|---|---|
| Verdict | Overvalued | Slightly undervalued |
| Price | $703.12 | $113.90 |
| Intrinsic value | $232.98 | $121.43 |
| Margin of safety | -202% | +6% |
| Leak Score | 43/100 (10/12) | 56/100 (9/12) |
| Market cap | $189.6B | $60.0B |
| Revenue growth, 5 years | 5.1% | 8.7% |
| Operating margin | 20.0% | 10.4% |
| Net margin | 10.2% | 9.0% |
| Return on equity | 18.3% | 12.8% |
| Debt to equity | 2.29 | 0.72 |
| P/E | 39.1x | 24.0x |
| Forward P/E | 31.3x | 15.8x |
| P/B | 6.8x | 3.0x |
| Dividend yield | 0.9% | 2.9% |