Caterpillar Valuation
| CAT Stock | USD 679.43 23.46 3.34% |
At this time, the firm appears to be overvalued. Caterpillar shows a prevailing Real Value of $668.78 per share. The current price of the firm is $679.43. Our model approximates the value of Caterpillar from analyzing the firm fundamentals such as Return On Equity of 0.44, profit margin of 0.13 %, and Current Valuation of 340.98 B as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Caterpillar's valuation include:
Price Book 14.4306 | Enterprise Value | Enterprise Value Ebitda 23.8365 | Price Sales 4.8719 | Forward PE 29.7619 |
Overvalued
Today
Please note that Caterpillar's price fluctuation is very steady at this time. Calculation of the real value of Caterpillar is based on 3 months time horizon. Increasing Caterpillar's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Caterpillar's intrinsic value may or may not be the same as its current market price of 679.43, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 679.43 | Real 668.78 | Target 674.01 | Hype 703.56 | Naive 691.31 |
The intrinsic value of Caterpillar's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Caterpillar's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Caterpillar helps investors to forecast how Caterpillar stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Caterpillar more accurately as focusing exclusively on Caterpillar's fundamentals will not take into account other important factors: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Caterpillar's intrinsic value based on its ongoing forecasts of Caterpillar's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Caterpillar's closest peers.
Caterpillar Cash |
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Caterpillar Revenue by Product
Caterpillar Total Value Analysis
Caterpillar is currently forecasted to have company total value of 340.98 B with market capitalization of 329.29 B, debt of 43.33 B, and cash on hands of 9.98 B. Please note that company total value may be misleading and is a subject to accounting gimmicks. We encourage investors to carefully check all of the Caterpillar fundamentals before making security assessment based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
340.98 B | 329.29 B | 43.33 B | 9.98 B |
Caterpillar Investor Information
About 74.0% of the company shares are held by institutions such as insurance companies. The company has Price/Earnings To Growth (PEG) ratio of 2.26. Caterpillar recorded earning per share (EPS) of 18.84. The entity last dividend was issued on the 20th of January 2026. The firm had 2:1 split on the 14th of July 2005. Based on the analysis of Caterpillar's profitability, liquidity, and operating efficiency, Caterpillar is performing exceptionally good at this time. It has a great probability to report excellent financial results in March.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Operating Profit Margin | 0.17 | 0.1659 |
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| Total Cash From Operating Activities | 12.3 B | 11.7 B |
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| Operating Income | 11.8 B | 11.2 B |
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Caterpillar Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Caterpillar has an asset utilization ratio of 68.56 percent. This implies that the Company is making $0.69 for each dollar of assets. An increasing asset utilization means that Caterpillar is more efficient with each dollar of assets it utilizes for everyday operations.Caterpillar Profitability Analysis
Considering Caterpillar's profitability and operating efficiency indicators, Caterpillar is performing exceptionally good at this time. It has a great probability to showcase excellent profitability results in March. Profitability indicators assess Caterpillar's ability to earn profits and add value for shareholders.Net Income | First Reported 1985-09-30 | Previous Quarter 2.3 B | Current Value 2.4 B | Quarterly Volatility 788.9 M |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Gross Profit Margin | 0.22 | 0.3234 |
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| Operating Profit Margin | 0.17 | 0.1659 |
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| Pretax Profit Margin | 0.18 | 0.1711 |
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For Caterpillar profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Caterpillar to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Caterpillar utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Caterpillar's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Caterpillar over time as well as its relative position and ranking within its peers.
Caterpillar Earnings per Share Projection vs Actual
The next projected EPS of Caterpillar is estimated to be 4.53 with future projections ranging from a low of 3.8 to a high of 5.04. Caterpillar's most recent 12-month trailing earnings per share (EPS TTM) is at 18.84. Please be aware that the consensus of earnings estimates for Caterpillar is based on EPS before non-recurring items and includes expenses related to employee stock options.Caterpillar Earnings Estimation Breakdown
The calculation of Caterpillar's earning per share is based on the data from the past 12 consecutive months, used for reporting the company's financial figures. The next projected EPS of Caterpillar is estimated to be 4.53 with the future projection ranging from a low of 3.8 to a high of 5.04. Please be aware that this consensus of annual earnings estimates for Caterpillar is based on EPS before non-recurring items and includes expenses related to employee stock options.Last Reported EPS
3.80 Lowest | Expected EPS | 5.04 Highest |
Caterpillar Earnings Projection Consensus
Suppose the current estimates of Caterpillar's value are higher than the current market price of the Caterpillar stock. In this case, investors may conclude that Caterpillar is overpriced and will exhibit bullish sentiment. On the other hand, if the present value is lower than the stock price, analysts may conclude that the market undervalues the equity. These scenarios may suggest that the market is not as efficient as it should be at the estimation time, and Caterpillar's stock will quickly adjusts to the new information provided by the consensus estimate.
| Number of Analysts | Historical Accuracy | Last Reported EPS | Estimated EPS for 31st of March 2026 | Current EPS (TTM) | |
| 28 | 90.82% | 5.16 | 4.53 | 18.84 |
Caterpillar Ownership Allocation
Caterpillar holds a total of 467.98 Million outstanding shares. The majority of Caterpillar outstanding shares are owned by other corporate entities. These outside corporations are usually referred to as non-private investors looking to acquire positions in Caterpillar to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in Caterpillar. Please pay attention to any change in the institutional holdings of Caterpillar as this could imply that something significant has changed or is about to change at the company. Please note that on January 16, 2026, Senator Markwayne Mullin of US Senate acquired $15k to $50k worth of Caterpillar's common stock.Caterpillar Profitability Analysis
The company reported the last year's revenue of 67.59 B. Total Income to common stockholders was 8.88 B with profit before taxes, overhead, and interest of 19.46 B.Caterpillar Past Distributions to stockholders
About Caterpillar Valuation
The stock valuation mechanism determines Caterpillar's current worth on a daily basis. In general, an absolute valuation approach attempts to find the value of Caterpillar based exclusively on its fundamental and basic technical indicators. As compared to an absolute model, our relative valuation model uses a comparative analysis of Caterpillar. We calculate exposure to Caterpillar's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Caterpillar's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 21.9 B | 23 B | |
| Pretax Profit Margin | 0.17 | 0.18 | |
| Operating Profit Margin | 0.17 | 0.17 | |
| Net Profit Margin | 0.13 | 0.14 | |
| Gross Profit Margin | 0.32 | 0.22 |
Caterpillar Quarterly Retained Earnings |
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A single share of Caterpillar represents a small ownership stake in the entity. As a stockholder of Caterpillar, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
Caterpillar Dividends Analysis For Valuation
At this time, Caterpillar's Dividend Yield is comparatively stable compared to the past year. Dividend Payout Ratio is likely to gain to 0.33 in 2026, despite the fact that Dividends Paid is likely to grow to (2.6 B). . At this time, Caterpillar's Retained Earnings are comparatively stable compared to the past year. Earnings Yield is likely to gain to 0.04 in 2026, whereas Retained Earnings Total Equity is likely to drop slightly above 34 B in 2026.
| Last Reported | Projected for Next Year | ||
| Dividends Paid | -2.7 B | -2.6 B | |
| Dividend Yield | 0.01 | 0.02 | |
| Dividend Payout Ratio | 0.31 | 0.33 | |
| Dividend Paid And Capex Coverage Ratio | 2.79 | 2.93 |
There are various types of dividends Caterpillar can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Caterpillar shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Caterpillar directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Caterpillar pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Caterpillar by the value of the dividends paid out.
Caterpillar Growth Indicators
Investing in growth stocks can be very risky. If the company such as Caterpillar does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 469 M | |
| Quarterly Earnings Growth Y O Y | -0.115 | |
| Forward Price Earnings | 29.7619 |
Caterpillar Current Valuation Indicators
Caterpillar's valuation analysis is a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Caterpillar's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Caterpillar, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Caterpillar's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Caterpillar's worth.Additional Tools for Caterpillar Stock Analysis
When running Caterpillar's price analysis, check to measure Caterpillar's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Caterpillar is operating at the current time. Most of Caterpillar's value examination focuses on studying past and present price action to predict the probability of Caterpillar's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Caterpillar's price. Additionally, you may evaluate how the addition of Caterpillar to your portfolios can decrease your overall portfolio volatility.