Deere & Co

Stock Ticker DE

$20162017201820192020$

Price $($year end$)107\mathrm{.}05166\mathrm{.}42164158\mathrm{.}58288\mathrm{.}8$

Equity & Income $($Blance sheet$)$ $$6,530\mathrm{.}8$ $$9,560\mathrm{.}5$ $$11,291\mathrm{.}2$ $$11,417\mathrm{.}0$ $$12,944\mathrm{.}0$

Net Income $($million$)$ $$1,523\mathrm{.}9$ $$2,159\mathrm{.}1$ $$2,368\mathrm{.}4$ $$3,253$ $$2,751\mathrm{.}0$

Shares out $($millions$)316\mathrm{.}6323\mathrm{.}3327\mathrm{.}3320\mathrm{.}6316\mathrm{.}6$

Book value per share $$20\mathrm{.}63$ $$29\mathrm{.}57$ $$34\mathrm{.}50$ $$35\mathrm{.}61$ $$40\mathrm{.}88$

P$/$B $$5\mathrm{.}2$ $$5\mathrm{.}63$ $$4\mathrm{.}75$ $$4\mathrm{.}45$ $$7\mathrm{.}06$

ROE $($Net Income$/$Equity$)23\%23\%21\%28\%21\%$

AGCO Corporation

Stock Ticker AGCO

$20162017201820192020$

Price $($year end$)62\mathrm{.}872\mathrm{.}6264\mathrm{.}270\mathrm{.}14110\mathrm{.}9$

Equity & Income $($Blance sheet$)$ $$2,837\mathrm{.}2$ $$3,095\mathrm{.}3$ $$2,993\mathrm{.}5$ $$2,907\mathrm{.}0$ $$3,018\mathrm{.}0$

Net Income $($million$)$ $$160\mathrm{.}10$ $$186\mathrm{.}40$ $$285\mathrm{.}50$ $$125\mathrm{.}2$ $$427\mathrm{.}1$

Shares out $($millions$)81\mathrm{.}780\mathrm{.}279\mathrm{.}777\mathrm{.}075\mathrm{.}6$

Book value per share $$34\mathrm{.}73$ $$38\mathrm{.}59$ $$37\mathrm{.}56$ $$37\mathrm{.}75$ $$39\mathrm{.}92$

P$/$B $$1\mathrm{.}81$ $$1\mathrm{.}88$ $$1\mathrm{.}71$ $$1\mathrm{.}86$ $$2\mathrm{.}78$

ROE $($Net Income$/$Equity$)6\%6\%10\%4\%14\%$

Caterpillar Inc.

Stock Ticker CAT

$20162017201820192020$

Price $($year end$)95\mathrm{.}66162\mathrm{.}78133\mathrm{.}16131\mathrm{.}35182\mathrm{.}84$

Equity & Income $($Blance sheet$)$ $$13,213\mathrm{.}0$ $$13,766\mathrm{.}0$ $$78,509\mathrm{.}0$ $$78,4$

$53\mathrm{.}0$ $$15,378\mathrm{.}0$

Net Income $($million$)$ $$67\mathrm{.}0$ $$754\mathrm{.}0$ $$6,147\mathrm{.}0$ $$6,093\mathrm{.}0$ $$2,998\mathrm{.}0$

Shares out $($millions$)584\mathrm{.}3599\mathrm{.}3599\mathrm{.}4567\mathrm{.}5548\mathrm{.}6$

Book value per share $$22\mathrm{.}61$ $$22\mathrm{.}97$ $$130\mathrm{.}98$ $$138\mathrm{.}24$ $$28\mathrm{.}03$

P$/$B $$4\mathrm{.}23$ $$7\mathrm{.}09$ $$1\mathrm{.}02$ $$0\mathrm{.}95$ $$6\mathrm{.}52$

ROE $($Net Income$/$Equity$)0\mathrm{.}5\%5\mathrm{.}5\%7\mathrm{.}8\%7\mathrm{.}8\%19\mathrm{.}5\%$

Evaluate each company's Price to Book value multiple at the end of $2020$ in the context of its own multiple over the past five years. Comment on why the Price to Book may be higher or lower than it has been in the past.

Requirement $3$: : Create an x versus y scatter plot of Price to Book Value versus ROE. There should be $15$ x$-$y data points on your graph. Based on your calculations for $2016,2017,2018,2019$ and $2020,$ and the x$-$y scatter plot, which of the three stocks looks most attractive to you as a potential future investment right now, why? $($Note: Be sure to select one of the three stocks to invest in and defend the selection.$)$