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Posted on Jul 15, 2024

14 PIE RECENT PRICE DEERE & CO.NYSE Trailing: 8.5 RELATIVE 37.02 -DE (en 0.82 * 3.0% RATO 10.60 DIVD YLD VALUE LINE CAPITAL STRUCTURE as

14 PIE RECENT PRICE DEERE & CO.NYSE Trailing: 8.5 RELATIVE 37.02 -DE (en 0.82" * 3.0% RATO 10.60 DIVD YLD VALUE LINE CAPITAL STRUCTURE as of 1131109 Total Debt $3375 mill. Due in 5 Yrs $1650 mil LT Debt $2034 mill LT Interest 5150 mill Excl. unconsol. debt of subs: LT, 514541 mill: ST, $7992 mill. (Total interest coverage: 16.5%, LT earned: 22.0x) (24% of Capi) TIMELINESS 3 Rabad 41208 SAFETY 2 Rahad 42409 TECHNICAL 3 Rabad 127908 BETA 1.40 (1.00 - Maroc 2012-14 PROJECTIONS Ann'l Total Price Gain Return High 115 (+210%) 34% LOW 85 +130%) 25% Insider Decisions MJ JASON DJ to Buy o o o o o o o o o Optats i OO O O O O o to sel 10OOOOOOO Institutional Decisions 202000 30.2008 10.2008 to Boy 361 302 365 to sell 363 417 337 Hd200328093 311528 304450 2008 2009 2010 VALUE LINE PUB., INCT 12-14 61.10 57,30 60.00 Sales per sh 80.00 6.01 4.90 5.40 "Cash Flowper sh 8.40 4.70 3.50 4.00 Earnings per sh 6.75 1.06 1.12 1.12 Divds Decid per shC 1.40 183 1.95 1.75 Cap Spending per sh 1.85 15.47 17.25 18.90 Book Value per shD 43.00 22230490.00 400.00 Common Shs Outsi'g 375.00 16.1 Bold figures are Avg Ann'T PIE Ratio 1500 1.01 Value Line Relative PE Ratio 1.00 esses Avg Ann'l Divd Yield 1.4% Leases, Uncapitalized Annual rentals $165 mil. Pension Assets-10/08 $7.8 bill. Oblig. 57.1 bill Pld Stock None Common Stock 422,672,599 shs. Market Cap: $15.6 billion (Large Cap) CURRENT POSITION 1/07 1/08 1/09 SMILL.) Cash Assets 1199 1199 1181 Receivables 949 1003 860 Inventory (LIFO) 2494 3289 3837 Other 1815 1960 962 Current Assets 6447 7451 6840 Accts Payable 3727 4516 4738 Debt Due 339 275 1341 Other 119 Current Liab. 233 5409 6198 ANNUAL RATES Past Past Est'd '06-'08 of charge persh 10 Yrs. 5 Yrs. to 12.14 Sales 8.5% 15.5% 9.595 "Cash Flow" 7.5% 26.5% 10.5% Earnings 8.0% 38.5% 11.5% Dividends 8.5% 16.0% 7.0% Book Value 7.0% 15 5% 18.056 189 618 PIE RECENT PRICE 16.2 Traling: 143 RELATIVE Median 210 PE RATIO 43.88 RATIO 1.25 DVD YLD 0.8% VALUE LINE ROPER INDS. NYSE-ROP CAPITAL STRUCTURE as of 12/31/08 Total Debt $1267.5 mill. Due in 5 yrs $1266,6 mil LT Debt $1033.7 mill. LT Interest $51.5 mill (Total interest covered: 9.1x) (34% of Capital TIMELINESS 2 Road 3130 SAFETY 3 2890 TECHNICAL 3 1250 BETA 1.100.00 201244 PROJECTIONS Anal Tour Price Gain Return Leases, Uncapitalized Annual rentals $24.2 mil No Defined Benefit Pension Plan 2008 2009 2010 VALUE LINE PUB, NCT 12-14 2.71 2.25 2.50 Sales persh A 28.70 47 410 Cash Flowper sh 545 306 270 2.80 Eamings per sh 45 2.80 30 34 .38 DIVds Decl'd persh 50 35 35 Cap Spending persa 2233 25.25 28.25 Book Value per she 38.50 25275 71.75 Common Sis Outsig 95.00 180 Boldres are Avg Ann'T PE Ratio 115 1.09 Value Line Relative PE Ratio 1.10 54 Arg Ann1 Divd Yield .8% Insider Decisions 0 O1 DH Institutional Decisions DOG 150 150 150 144 102 100 8803487042 87110 Preferred Stock None Common Stock 89.765,578 shares as of 2/2009 MARKET CAP: $3.9 billion (Mid Cap] CURRENT POSITION 2006 2007 12/31/08 SMILL) Cash Assets 69.5 3088 178.1 Receivables 3245 359.8 376 9 Inventory (LIFO) 1683 174 1 185.9 Other 65.2 108.4 1174 Current Assets 8275 9517 8505 Accts Payable 115.8 121.8 Debt Due 299.9 331.1 2338 Other 191.7 2206 263.6 Current Liab. 587.7 6675 6192 ANNUAL RATES Past Past Est'd 06.08 of charge persh 10 Yrs. 5 Yrs. to 12.14 Sales 16.5% 19.0% 40% *Cash Flow 17.5% 25.0% 6.5% Eamings 17.0% 21.5% 6.5% Dividends 10.5% 10.5% 11.0% Book Value 21.5% 24.0% 11.5% 96.1 What are the maximum prices an investor would be willing to pay today based on the dividend growth model? Assume a required return of 10% for each stock; use 2008 as the current year (year zero); and a three-year time horizon. Deere= $92.75; Roper = $51.29 Deere= $100.00; Roper = $62.50 Deere= $69.69; Roper = $38.53 Deere= $75.13; Roper = $46.96 14 PIE RECENT PRICE DEERE & CO.NYSE Trailing: 8.5 RELATIVE 37.02 -DE (en 0.82" * 3.0% RATO 10.60 DIVD YLD VALUE LINE CAPITAL STRUCTURE as of 1131109 Total Debt $3375 mill. Due in 5 Yrs $1650 mil LT Debt $2034 mill LT Interest 5150 mill Excl. unconsol. debt of subs: LT, 514541 mill: ST, $7992 mill. (Total interest coverage: 16.5%, LT earned: 22.0x) (24% of Capi) TIMELINESS 3 Rabad 41208 SAFETY 2 Rahad 42409 TECHNICAL 3 Rabad 127908 BETA 1.40 (1.00 - Maroc 2012-14 PROJECTIONS Ann'l Total Price Gain Return High 115 (+210%) 34% LOW 85 +130%) 25% Insider Decisions MJ JASON DJ to Buy o o o o o o o o o Optats i OO O O O O o to sel 10OOOOOOO Institutional Decisions 202000 30.2008 10.2008 to Boy 361 302 365 to sell 363 417 337 Hd200328093 311528 304450 2008 2009 2010 VALUE LINE PUB., INCT 12-14 61.10 57,30 60.00 Sales per sh 80.00 6.01 4.90 5.40 "Cash Flowper sh 8.40 4.70 3.50 4.00 Earnings per sh 6.75 1.06 1.12 1.12 Divds Decid per shC 1.40 183 1.95 1.75 Cap Spending per sh 1.85 15.47 17.25 18.90 Book Value per shD 43.00 22230490.00 400.00 Common Shs Outsi'g 375.00 16.1 Bold figures are Avg Ann'T PIE Ratio 1500 1.01 Value Line Relative PE Ratio 1.00 esses Avg Ann'l Divd Yield 1.4% Leases, Uncapitalized Annual rentals $165 mil. Pension Assets-10/08 $7.8 bill. Oblig. 57.1 bill Pld Stock None Common Stock 422,672,599 shs. Market Cap: $15.6 billion (Large Cap) CURRENT POSITION 1/07 1/08 1/09 SMILL.) Cash Assets 1199 1199 1181 Receivables 949 1003 860 Inventory (LIFO) 2494 3289 3837 Other 1815 1960 962 Current Assets 6447 7451 6840 Accts Payable 3727 4516 4738 Debt Due 339 275 1341 Other 119 Current Liab. 233 5409 6198 ANNUAL RATES Past Past Est'd '06-'08 of charge persh 10 Yrs. 5 Yrs. to 12.14 Sales 8.5% 15.5% 9.595 "Cash Flow" 7.5% 26.5% 10.5% Earnings 8.0% 38.5% 11.5% Dividends 8.5% 16.0% 7.0% Book Value 7.0% 15 5% 18.056 189 618 PIE RECENT PRICE 16.2 Traling: 143 RELATIVE Median 210 PE RATIO 43.88 RATIO 1.25 DVD YLD 0.8% VALUE LINE ROPER INDS. NYSE-ROP CAPITAL STRUCTURE as of 12/31/08 Total Debt $1267.5 mill. Due in 5 yrs $1266,6 mil LT Debt $1033.7 mill. LT Interest $51.5 mill (Total interest covered: 9.1x) (34% of Capital TIMELINESS 2 Road 3130 SAFETY 3 2890 TECHNICAL 3 1250 BETA 1.100.00 201244 PROJECTIONS Anal Tour Price Gain Return Leases, Uncapitalized Annual rentals $24.2 mil No Defined Benefit Pension Plan 2008 2009 2010 VALUE LINE PUB, NCT 12-14 2.71 2.25 2.50 Sales persh A 28.70 47 410 Cash Flowper sh 545 306 270 2.80 Eamings per sh 45 2.80 30 34 .38 DIVds Decl'd persh 50 35 35 Cap Spending persa 2233 25.25 28.25 Book Value per she 38.50 25275 71.75 Common Sis Outsig 95.00 180 Boldres are Avg Ann'T PE Ratio 115 1.09 Value Line Relative PE Ratio 1.10 54 Arg Ann1 Divd Yield .8% Insider Decisions 0 O1 DH Institutional Decisions DOG 150 150 150 144 102 100 8803487042 87110 Preferred Stock None Common Stock 89.765,578 shares as of 2/2009 MARKET CAP: $3.9 billion (Mid Cap] CURRENT POSITION 2006 2007 12/31/08 SMILL) Cash Assets 69.5 3088 178.1 Receivables 3245 359.8 376 9 Inventory (LIFO) 1683 174 1 185.9 Other 65.2 108.4 1174 Current Assets 8275 9517 8505 Accts Payable 115.8 121.8 Debt Due 299.9 331.1 2338 Other 191.7 2206 263.6 Current Liab. 587.7 6675 6192 ANNUAL RATES Past Past Est'd 06.08 of charge persh 10 Yrs. 5 Yrs. to 12.14 Sales 16.5% 19.0% 40% *Cash Flow 17.5% 25.0% 6.5% Eamings 17.0% 21.5% 6.5% Dividends 10.5% 10.5% 11.0% Book Value 21.5% 24.0% 11.5% 96.1 What are the maximum prices an investor would be willing to pay today based on the dividend growth model? Assume a required return of 10% for each stock; use 2008 as the current year (year zero); and a three-year time horizon. Deere= $92.75; Roper = $51.29 Deere= $100.00; Roper = $62.50 Deere= $69.69; Roper = $38.53 Deere= $75.13; Roper = $46.96