Historical Valuation
Caterpillar Inc (CAT) is now in the Overvalued zone, suggesting that its current forward PE ratio of 28.87 is considered Overvalued compared with the five-year average of 16.96. The fair price of Caterpillar Inc (CAT) is between 327.19 to 468.24 according to relative valuation methord. Compared to the current price of 629.77 USD , Caterpillar Inc is Overvalued By 34.5%.
Relative Value
Fair Zone
327.19-468.24
Current Price：629.77
34.5%
Overvalued
P/E
EV/EBITDA
EV/EBIT
P/S
P/OCF
P/FCF
1Y
3Y
5Y
Trailing
Forward
Caterpillar Inc (CAT) has a current Price-to-Book (P/B) ratio of 13.56. Compared to its 3-year average P/B ratio of 8.91 , the current P/B ratio is approximately 52.18% higher. Relative to its 5-year average P/B ratio of 8.09, the current P/B ratio is about 67.48% higher. Caterpillar Inc (CAT) has a Forward Free Cash Flow (FCF) yield of approximately 2.70%. Compared to its 3-year average FCF yield of 5.18%, the current FCF yield is approximately -47.91% lower. Relative to its 5-year average FCF yield of 4.66% , the current FCF yield is about -42.07% lower.
P/B
Median3y
8.91
Median5y
8.09
FCF Yield
Median3y
5.18
Median5y
4.66
Competitors Valuation Multiple
AI Analysis for CAT
The average P/S ratio for CAT competitors is 2.50, providing a benchmark for relative valuation. Caterpillar Inc Corp (CAT.N) exhibits a P/S ratio of 3.99, which is 59.58% above the industry average. Given its robust revenue growth of 9.51%, this premium appears unsustainable.
Performance Decomposition
AI Analysis for CAT
1Y
3Y
5Y
Market capitalization of CAT increased by 0.00% over the past 1 year. The primary factor behind the change was an decrease in Unknown from 0.00 to 0.00.
The secondary factor is the Unknown, contributed 0.00%to the performance.
Overall, the performance of CAT in the past 1 year is driven by Unknown.
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Frequently Asked Questions
Is CAT currently overvalued or undervalued?
Caterpillar Inc (CAT) is now in the Overvalued zone, suggesting that its current forward PE ratio of 28.87 is considered Overvalued compared with the five-year average of 16.96. The fair price of Caterpillar Inc (CAT) is between 327.19 to 468.24 according to relative valuation methord. Compared to the current price of 629.77 USD , Caterpillar Inc is Overvalued By 34.50% .
What is Caterpillar Inc (CAT) fair value?
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. The fair price of Caterpillar Inc (CAT) is between 327.19 to 468.24 according to relative valuation methord.
How does CAT's valuation metrics compare to the industry average?
The average P/S ratio for CAT's competitors is 2.50, providing a benchmark for relative valuation. Caterpillar Inc Corp (CAT) exhibits a P/S ratio of 3.99, which is 59.58% above the industry average. Given its robust revenue growth of 9.51%, this premium appears unsustainable.
What is the current P/B ratio for Caterpillar Inc (CAT) as of Jan 12 2026?
As of Jan 12 2026, Caterpillar Inc (CAT) has a P/B ratio of 13.56. This indicates that the market values CAT at 13.56 times its book value.
What is the current FCF Yield for Caterpillar Inc (CAT) as of Jan 12 2026?
As of Jan 12 2026, Caterpillar Inc (CAT) has a FCF Yield of 2.70%. This means that for every dollar of Caterpillar Inc’s market capitalization, the company generates 2.70 cents in free cash flow.
What is the current Forward P/E ratio for Caterpillar Inc (CAT) as of Jan 12 2026?
As of Jan 12 2026, Caterpillar Inc (CAT) has a Forward P/E ratio of 28.87. This means the market is willing to pay $28.87 for every dollar of Caterpillar Inc’s expected earnings over the next 12 months.
What is the current Forward P/S ratio for Caterpillar Inc (CAT) as of Jan 12 2026?
As of Jan 12 2026, Caterpillar Inc (CAT) has a Forward P/S ratio of 3.99. This means the market is valuing CAT at $3.99 for every dollar of expected revenue over the next 12 months.