F.A.S.T. Graphs reveals a great deal about John Deere the business, and about John Deere the solid investment. Still, a few words of clarification are in order. First , the orange line on the graph represents a plotting of earnings per share and a P/E ratio of 24.8, equal to the company's earnings growth rate since 1993. The blue line represents the P/E ratio of 16.2 that the market has typically applied to Deere's shares over that period of time. The light blue shaded area expresses dividends paid out of earnings (green shaded area). The pink line simply plots the company's dividend each year and simultaneously indicates the company's payout ratio, which is everything below the pink line. Finally, the black line represents the company's monthly closing stock prices. A quick analysis of this graph reveals that Deere is undervalued when the stock price is below the blue line, overvalued when it's above the blue line and historically fairly valued when the price is touching the blue line. Consequently, on that basis Deere stock is currently significantly undervalued. Since you make your money on the buy side, Deere looks like a very attractive buy for the long-term investor.