The Rising Influence of Rising Affluence

[DewDiligence]

DE—During the CC Q&A, the CFO highlighted how the increased software component in tractor-and-combine sales is increasing the operating margin, a theme presented in #msg-161353722. Still, I’m not fully on-board with the notion (expounded in that post) that DE ought to be characterized as a network software company.

The stock is now +11% today to a new all-time high. Despite the bullish outlook for FY2021*, the stock’s enterprise value of ~$140B (including ~$40B of net debt) seems stretched. (I’m not selling any shares because my cost-basis is too low to take the tax hit.)

*Fiscal year ending 10/31/21.