CAT Valuation

Caterpillar Inc

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431.260

-1.04(-0.241%)1D

Overview
Forecast
Valuation
Earnings

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 22.16 is considered Overvalued compared with the five-year average of 16.77. The fair price of Caterpillar Inc (CAT) is between 287.14 to 398.98 according to relative valuation methord. Compared to the current price of 431.26 USD , Caterpillar Inc is Overvalued By 8.09%.

Relative Value

Fair Zone

287.14-398.98

Current Price：431.26

8.09%

Overvalued

22.16

Trailing

Forward

16.88

EV/EBITDA

Caterpillar Inc. (CAT) has a current EV/EBITDA of 16.88. The 5-year average EV/EBITDA is 13.67. The thresholds are as follows: Strongly Undervalued below 9.51, Undervalued between 9.51 and 11.59, Fairly Valued between 15.75 and 11.59, Overvalued between 15.75 and 17.84, and Strongly Overvalued above 17.84. The current Forward EV/EBITDA of 16.88 falls within the Overvalued range.

20.11

EV/EBIT

Caterpillar Inc. (CAT) has a current EV/EBIT of 20.11. The 5-year average EV/EBIT is 16.14. The thresholds are as follows: Strongly Undervalued below 9.81, Undervalued between 9.81 and 12.98, Fairly Valued between 19.31 and 12.98, Overvalued between 19.31 and 22.48, and Strongly Overvalued above 22.48. The current Forward EV/EBIT of 20.11 falls within the Overvalued range.

3.10

Caterpillar Inc. (CAT) has a current PS of 3.10. The 5-year average PS is 2.20. The thresholds are as follows: Strongly Undervalued below 1.41, Undervalued between 1.41 and 1.80, Fairly Valued between 2.60 and 1.80, Overvalued between 2.60 and 2.99, and Strongly Overvalued above 2.99. The current Forward PS of 3.10 falls within the Strongly Overvalued range.

18.30

P/OCF

Caterpillar Inc. (CAT) has a current P/OCF of 18.30. The 5-year average P/OCF is 14.26. The thresholds are as follows: Strongly Undervalued below 8.44, Undervalued between 8.44 and 11.35, Fairly Valued between 17.18 and 11.35, Overvalued between 17.18 and 20.09, and Strongly Overvalued above 20.09. The current Forward P/OCF of 18.30 falls within the Overvalued range.

23.80

P/FCF

Caterpillar Inc. (CAT) has a current P/FCF of 23.80. The 5-year average P/FCF is 17.54. The thresholds are as follows: Strongly Undervalued below 7.95, Undervalued between 7.95 and 12.75, Fairly Valued between 22.34 and 12.75, Overvalued between 22.34 and 27.13, and Strongly Overvalued above 27.13. The current Forward P/FCF of 23.80 falls within the Overvalued range.

Caterpillar Inc (CAT) has a current Price-to-Book (P/B) ratio of 10.83. Compared to its 3-year average P/B ratio of 8.27 , the current P/B ratio is approximately 30.98% higher. Relative to its 5-year average P/B ratio of 7.65, the current P/B ratio is about 41.55% higher. Caterpillar Inc (CAT) has a Forward Free Cash Flow (FCF) yield of approximately 3.82%. Compared to its 3-year average FCF yield of 5.20%, the current FCF yield is approximately -26.53% lower. Relative to its 5-year average FCF yield of 4.76% , the current FCF yield is about -19.77% lower.

10.83

P/B

Median3y

8.27

Median5y

7.65

3.82

FCF Yield

Median3y

5.20

Median5y

4.76

Competitors Valuation Multiple

The average P/S ratio for CAT's competitors is 2.23, providing a benchmark for relative valuation. Caterpillar Inc Corp (CAT) exhibits a P/S ratio of 3.10, which is 39.04% above the industry average. Given its robust revenue growth of -0.72%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Westinghouse Air Brake Technologies Corp

Performance Decomposition

Market capitalization of CAT increased by 21.11% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 15.67 to 21.94.

The secondary factor is the Revenue Growth, contributed -0.72%to the performance.

Overall, the performance of CAT in the past 1 year is driven by P/E Change. Which is more unsustainable.

-0.72%

16.69B → 16.57B

Revenue Growth

-18.12%

16.06 → 13.15

Margin Expansion

39.95%

15.67 → 21.94

P/E Change

21.11%