Deere Stock Fair Value Calculation – DEERE and Caterpillar Settle Patent Dispute in Multi-Million Dollar Verdict

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DEERE ($NYSE:DE), also known as Deere & Co, is a leading American manufacturer of agricultural, construction, and forestry equipment. DEERE’s products are known for their reliability, innovation, and high-quality, making them a top choice among farmers, construction workers, and forestry professionals. Recently, DEERE’s subsidiary Wirtgen America made headlines as they settled a long-standing patent dispute with rival company Caterpillar. The dispute revolved around road construction equipment, specifically milling machines used for removing pavement and creating smooth surfaces. Wirtgen America had accused Caterpillar of infringing on their patented technology and design. After several years of legal battles, Wirtgen America was awarded a $12.9 million verdict in their favor by a federal jury in Illinois.

However, just before the case was set to go to an appeal trial, the two companies announced that they have reached a settlement agreement. The terms of the settlement were not disclosed, but it is likely that Caterpillar paid a significant sum to DEERE and Wirtgen America to end the dispute. This verdict and subsequent settlement highlight the importance of intellectual property protection in the highly competitive construction equipment market. For DEERE, this victory not only provides them with financial compensation but also reaffirms their commitment to innovation and protecting their patents. It also solidifies their position as a leader in the road construction equipment industry. On the other hand, Caterpillar’s decision to settle may be seen as a strategic move to avoid potential damages and strengthen their relationship with DEERE in the future. Despite this legal battle, both DEERE and Caterpillar continue to be major players in the construction equipment market. They compete fiercely in various product categories, including excavators, dozers, and loaders. This settlement may mark the end of their patent dispute, but the competition between the two companies will undoubtedly continue in the market. It not only highlights the importance of intellectual property rights but also showcases the fierce competition in this market. As a company, DEERE remains committed to innovation and protecting their patents, while also striving to provide top-quality products to their customers.

Stock Price

On Thursday, DEERE and Caterpillar reached a settlement in their long-standing patent dispute. Following the announcement, DEERE’s stock opened at $404.77 and closed at $405.76, showing a slight increase of 0.07% from the previous closing price of $405.48. The patent dispute between the two heavy equipment manufacturers has been ongoing for several years. DEERE had accused Caterpillar of infringing on its patents for particular aspects of its dozer designs. In response, Caterpillar had countersued, claiming that DEERE had also infringed upon its patents. This settlement marks the end of a costly legal battle for both companies. In addition to the multi-million dollar verdict, both DEERE and Caterpillar had spent significant amounts of money on legal fees and resources throughout the course of the dispute.

With the settlement, both companies can now shift their focus back to their respective businesses. DEERE is a well-established company in the heavy equipment industry, known for its innovative designs and high-quality products. The company has a strong reputation and has been consistently profitable, making this legal victory even more significant for them. The settlement not only validates DEERE’s patents but also serves as a deterrent to potential patent infringements in the future. The slight increase in stock price shows that investors are confident in the company’s ability to protect its intellectual property and continue to thrive in the industry. With this dispute now behind them, DEERE can continue to focus on driving growth and innovation in its business operations. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Deere. DEERE_and_Caterpillar_Settle_Patent_Dispute_in_Multi-Million_Dollar_Verdict”>More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Deere. DEERE_and_Caterpillar_Settle_Patent_Dispute_in_Multi-Million_Dollar_Verdict”>More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Deere. DEERE_and_Caterpillar_Settle_Patent_Dispute_in_Multi-Million_Dollar_Verdict”>More…

Key Ratios Snapshot

Some of the financial key ratios for Deere are shown below. DEERE_and_Caterpillar_Settle_Patent_Dispute_in_Multi-Million_Dollar_Verdict”>More…

Analysis – Deere Stock Fair Value Calculation

At GoodWhale, we believe in providing our clients with thorough and accurate analyses of various companies. Recently, we have conducted an analysis on DEERE, a well-known company in the agriculture and construction equipment industry. Our analysis focused on the company’s overall wellbeing and its stock valuation. After careful evaluation, we have determined that the fair value of DEERE’s share is approximately $484.2. This value was calculated using our proprietary Valuation Line, which takes into consideration various factors such as the company’s financial performance, industry trends, and potential growth opportunities. Currently, DEERE’s stock is trading at $405.76, indicating that it is undervalued by 16.2%. This means that investors have the opportunity to purchase DEERE’s stock at a discounted price, making it an attractive investment option. However, it is important to note that stock prices are constantly fluctuating, and our valuation may change accordingly. Furthermore, our analysis also took into account DEERE’s overall wellbeing as a company. We looked at various aspects such as its financial stability, market position, and management efficiency. Its market position is also favorable, with a strong brand reputation and a diverse range of products. In conclusion, our analysis indicates that DEERE’s stock is currently undervalued and presents a good investment opportunity. However, we always recommend conducting thorough research and seeking professional advice before making any investment decisions. Our team at GoodWhale will continue to monitor DEERE’s performance and provide updated analyses to assist investors in making informed decisions. More…

Peers

Deere & Co. is an American corporation that manufactures agricultural, construction, and forestry machinery, diesel engines, drivetrains (axles, transmissions, gearboxes) used in heavy equipment, and lawn care equipment. In 2018, it was listed as 87th in the Fortune 500 America’s ranking and was ranked 329th in the global ranking. The company also provides financial services and other related activities. Deere & Co.’s main competitors are CNH Industrial NV, Caterpillar Inc, Hitachi Construction Machinery Co Ltd.

– CNH Industrial NV ($NYSE:CNHI)

CNHI is a world leader in the design and manufacture of agricultural and construction equipment. The company has a market cap of 17.03B as of 2022 and a ROE of 29.84%. CNHI produces some of the world’s most recognizable brands, including Case IH, New Holland, and Steyr. The company’s products are used in a variety of applications, including farming, construction, and landscaping.

– Caterpillar Inc ($NYSE:CAT)

Caterpillar Inc. is a publicly traded company with a market capitalization of 96.9 billion as of 2022. The company designs, manufactures, markets and sells machinery and engines used in construction, mining, and forestry applications worldwide. Caterpillar’s return on equity was 33.83% as of 2022.

Caterpillar is a leading manufacturer of construction and mining equipment, diesel and natural gas engines, and industrial gas turbines. The company also serves the defense, rail, and power generation industries. Caterpillar employs more than 130,000 people worldwide and operates in more than 200 countries.

– Hitachi Construction Machinery Co Ltd ($TSE:6305)

Hitachi Construction Machinery Co Ltd has a market cap of 574.79B as of 2022, a Return on Equity of 13.19%. The company is engaged in the manufacturing and selling of construction and mining equipment, as well as other related products and services. The company has a strong presence in Japan and Asia, and is expanding its operations globally.

Summary

Deere & Co has recently settled a patent dispute with Caterpillar, ending a legal battle over road-construction machinery. The dispute was resolved after Deere’s subsidiary, Wirtgen America, won a $12.9 million verdict against Caterpillar. This news may have an impact on investor confidence in Deere, as it shows the company’s ability to protect its intellectual property and secure financial compensation.

It also highlights the competition in the construction industry, with major players like Deere and Caterpillar constantly vying for market share. Investors should keep an eye on any further developments in this legal dispute, as it may affect the profitability and growth potential of Deere.