NYSE
CAT
Last Price
US $856.57
KEY FIGURES
MKT CAP
$394.6B
EPS
TTM
$23.53
PEG
TTM
N/M
P/E
TTM
36.40x
P/S
TTM
5.28x
YIELD
0.72%
GROWTH
Revenue Y/Y
Profit margin
Current Ratio
Capital Returns
54.14%
Return on equity
ROIC: 13.19%
Valuation History
54.2X
Price to Earnings
EV/EBITDA: 25.4X
Cash flow
Profit margin
10.12%
(FY vs FY)
EBITDA Y/Y
16.44%
(FY vs FY)
Cash flow Y/Y
19.52%
(FY vs FY)
Cash Flow (DCF)
Fair Value
Market $856.57
-62.83%
Default assumptions
EBITDA Multiple
Fair Value
Market $856.57
-82.38%
Default assumptions
Base valuations use default assumptions. Customize in the Valuator.
Valuation
Financial
Performance
Financial stability - Cash flow debt coverage.
Caterpillar Inc. cash flow to debt ratio of 27.09% indicates that the company generates enough cash to cover its debts. This level indicates strong financial health.
Financial stability - Healthy cash flow growth.
Caterpillar Inc.'s free cash flow has increased 16.49% from $8.82G last year to $10.27G, signaling increasing performance
Financial risk - Healthy debt to equity ratio.
Caterpillar Inc.'s debt to equity ratio is 2.33, which means that the company's assets are unhealthy financed, signaling financial risk. READ MORE: A ratio over 0.60 means the company finances its assets with debt, signaling financial risk. If ratio is negative, the company spent its own equity and risks bankruptcy
Financial risk - Healthy debt to equity ratio development.
Caterpillar Inc.'s debt has increased relative to shareholder equity from 1.97 last year to 2.33 today, signaling weakened financials
Financial stability - Net debt/EBITDA.
Caterpillar Inc. has a net debt to EBITDA ratio of 2.25x, which is below the 3.00x threshold, indicating healthy leverage and financial stability
Financial stability - ICR.
Caterpillar Inc.'s interest coverage ratio of 11.98 indicates that earnings with good margin can cover interest payments on company debt
Financial risk - Profit margin growth.
Caterpillar Inc.'s profit margin has decreased (-12.95%) in the last year from 16.65% to 14.50%, signaling decreasing performance
Financial stability - Short term assets vs short term liabilities.
Caterpillar Inc.'s short-term assets of $52.48G exceed its short-term liabilities of $36.56G
Increasing performance - ROA.
Caterpillar Inc.'s return on assets of 10.56% is higher than the 5.00% threshold, indicating efficient asset utilization
Increasing performance - Absolute return on equity.
Caterpillar Inc.'s return on equity of 54.14%, is higher than 15.00%, indicating good performance
Increasing performance - Earnings quality.
Caterpillar Inc.'s operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation
Increasing performance - Earnings stability.
Caterpillar Inc. had positive net income in 5.00 out of 5 years, indicating stable and consistent earnings
Increasing performance - Free cash flow.
Caterpillar Inc. has positive free cash flow, indicating the company generates cash after capital expenditures
Increasing performance - FCF yield.
Caterpillar Inc. has a free cash flow yield of 2.60%, which is above the 2.00% threshold, indicating strong cash generation relative to market value
Decreasing performance - Healthy earnings growth.
Caterpillar Inc.'s yearly earnings has decreased -17.78% since last year from $10.79G to $8.87G, signaling decreasing performance
Increasing performance - Healthy revenue growth.
Caterpillar Inc.'s yearly revenue has increased 4.29% since last year from $64.81G to $67.59G, signaling increasing performance
Increasing performance - ROIC.
ROIC 13.19% (Source: FMP key-metrics). At or above the 10% threshold. Score: 2 of 2. The company is generating returns above the upper end of the typical US weighted-average cost of capital range under this definition of invested capital.
Increasing performance - 3-year revenue CAGR.
Caterpillar Inc.'s 3-year revenue CAGR of 4.38% is positive, indicating growing revenue over the past 3 years
Increasing performance - Revenue consistency.
Caterpillar Inc. had revenue growth in 4.00 out of 5 years, indicating consistent revenue performance
Increasing performance - ROE consistency.
Caterpillar Inc. had positive ROE in 5.00 out of 5 years, indicating consistent and reliable returns on equity
Overvalued - DCF valuation.
Caterpillar Inc. is overvalued relative to its fair value price of 318.42 based on Discounted Cash Flow model
Overvalued - Earnings yield.
Caterpillar Inc. has an earnings yield of 2.75%, which is below the 4.00% threshold, indicating the stock may be expensive relative to its earnings
Overvalued - EBITDA valuation.
Caterpillar Inc. is overvalued relative to its fair value price of 150.94 based on EBITDA multiple model
Overvalued - EV/EBITDA.
Caterpillar Inc. has an EV/EBITDA ratio of 28.81x, which exceeds the 20.00x threshold, indicating the stock may be overvalued relative to its operating earnings
Overvalued - PEG ratio value.
Caterpillar Inc. has no meaningful EPS growth rate; PEG ratio cannot be computed.
Overvalued - P/B ratio.
Caterpillar Inc. has a price-to-book ratio of 20.33x, which exceeds the 5.00x threshold, indicating the stock may be overvalued relative to its book value
Undervalued - P/S ratio.
Caterpillar Inc. has a price-to-sales ratio of 5.28x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue