Caterpillar Valuation
| CAT Stock | USD 397.49 7.90 2.03% |
At this time, the firm appears to be overvalued. Caterpillar shows a prevailing Real Value of $309.42 per share. The current price of the firm is $397.49. Our model approximates the value of Caterpillar from analyzing the firm fundamentals such as Current Valuation of 224.17 B, return on equity of 0.53, and Profit Margin of 0.16 % as well as examining its technical indicators and probability of bankruptcy.
Price Book 9.8938 | Enterprise Value 224.2 B | Enterprise Value Ebitda 13.9645 | Price Sales 2.9226 | Forward PE 18.2815 |
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 397.49, 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 397.49 | Real 309.42 | Target 284.95 | Hype 398.44 | Naive 380.82 |
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: Caterpillar Total Value Analysis
Caterpillar is currently forecasted to have company total value of 224.17 B with market capitalization of 191.91 B, debt of 38.45 B, and cash on hands of 7 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 |
224.17 B | 191.91 B | 38.45 B | 7 B |
Caterpillar Investor Information
About 72.0% of the company shares are held by institutions such as insurance companies. The company has Price/Earnings To Growth (PEG) ratio of 2.71. Caterpillar recorded earning per share (EPS) of 21.54. The entity last dividend was issued on the 21st of October 2024. 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 not in a good financial situation at this time. It has a very high probability of going through financial hardship in December.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 76.66 percent. This implies that the Company is making $0.77 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 Ownership Allocation
Caterpillar holds a total of 482.8 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 November 11, 2024, Representative Ro Khanna of US Congress acquired under $15k worth of Caterpillar's common stock.Caterpillar Profitability Analysis
The company reported the last year's revenue of 67.06 B. Total Income to common stockholders was 10.34 B with profit before taxes, overhead, and interest of 15.56 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.Caterpillar Inc. manufactures and sells construction and mining equipment, diesel and natural gas engines, and industrial gas turbines. The company was founded in 1925 and is headquartered in Deerfield, Illinois. Caterpillar operates under Farm Heavy Construction Machinery classification in the United States and is traded on New York Stock Exchange. It employs 107700 people.
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
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 | 513.6 M | |
| Quarterly Earnings Growth Y O Y | -0.072 | |
| Forward Price Earnings | 18.2815 |
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.