CAT Relative Valuation
CAT's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, CAT is overvalued; if below, it's undervalued.
Historical Valuation
Caterpillar Inc (CAT) is now in the Overvalued zone, suggesting that its current forward PE ratio of 28.77 is considered Overvalued compared with the five-year average of 16.93. The fair price of Caterpillar Inc (CAT) is between 313.58 to 443.34 according to relative valuation methord. Compared to the current price of 599.15 USD , Caterpillar Inc is Overvalued By 35.15%.
Relative Value
Fair Zone
313.58-443.34
Current Price：599.15
35.15%
Overvalued
29.14
PE
1Y
3Y
5Y
Trailing
Forward
21.05
EV/EBITDA
Caterpillar Inc. (CAT) has a current EV/EBITDA of 21.05. The 5-year average EV/EBITDA is 13.81. The thresholds are as follows: Strongly Undervalued below 9.12, Undervalued between 9.12 and 11.47, Fairly Valued between 16.16 and 11.47, Overvalued between 16.16 and 18.50, and Strongly Overvalued above 18.50. The current Forward EV/EBITDA of 21.05 falls within the Strongly Overvalued range.
25.15
EV/EBIT
Caterpillar Inc. (CAT) has a current EV/EBIT of 25.15. The 5-year average EV/EBIT is 16.17. The thresholds are as follows: Strongly Undervalued below 9.74, Undervalued between 9.74 and 12.95, Fairly Valued between 19.38 and 12.95, Overvalued between 19.38 and 22.59, and Strongly Overvalued above 22.59. The current Forward EV/EBIT of 25.15 falls within the Strongly Overvalued range.
3.94
PS
Caterpillar Inc. (CAT) has a current PS of 3.94. The 5-year average PS is 2.28. The thresholds are as follows: Strongly Undervalued below 1.31, Undervalued between 1.31 and 1.80, Fairly Valued between 2.77 and 1.80, Overvalued between 2.77 and 3.25, and Strongly Overvalued above 3.25. The current Forward PS of 3.94 falls within the Strongly Overvalued range.
23.84
P/OCF
Caterpillar Inc. (CAT) has a current P/OCF of 23.84. The 5-year average P/OCF is 14.51. The thresholds are as follows: Strongly Undervalued below 8.07, Undervalued between 8.07 and 11.29, Fairly Valued between 17.73 and 11.29, Overvalued between 17.73 and 20.95, and Strongly Overvalued above 20.95. The current Forward P/OCF of 23.84 falls within the Strongly Overvalued range.
30.59
P/FCF
Caterpillar Inc. (CAT) has a current P/FCF of 30.59. The 5-year average P/FCF is 17.60. The thresholds are as follows: Strongly Undervalued below 8.68, Undervalued between 8.68 and 13.14, Fairly Valued between 22.05 and 13.14, Overvalued between 22.05 and 26.51, and Strongly Overvalued above 26.51. The current Forward P/FCF of 30.59 falls within the Strongly Overvalued range.
Caterpillar Inc (CAT) has a current Price-to-Book (P/B) ratio of 13.40. Compared to its 3-year average P/B ratio of 8.75 , the current P/B ratio is approximately 53.08% higher. Relative to its 5-year average P/B ratio of 7.98, the current P/B ratio is about 67.91% higher. Caterpillar Inc (CAT) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 5.19%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 4.69% , the current FCF yield is about -100.00% lower.
13.57
P/B
Median3y
8.75
Median5y
7.98
2.73
FCF Yield
Median3y
5.19
Median5y
4.69
Competitors Valuation Multiple
The average P/S ratio for CAT's competitors is 1.61, providing a benchmark for relative valuation. Caterpillar Inc Corp (CAT) exhibits a P/S ratio of , which is -100.00% above the industry average. Given its robust revenue growth of 9.51%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of CAT increased by 65.16% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 18.04 to 30.74.
The secondary factor is the Revenue Growth, contributed 9.51%to the performance.
Overall, the performance of CAT in the past 1 year is driven by P/E Change. Which is more unsustainable.
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FAQ
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