Caterpillar Inc.

NYSE:CAT Stock Report

Market Cap: US$197.1b

Caterpillar Valuation

Is CAT undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of CAT when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: CAT ($393.37) is trading above our estimate of fair value ($278.94)

Significantly Below Fair Value: CAT is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for CAT?

Other financial metrics that can be useful for relative valuation.

CAT key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue3.5x
Enterprise Value/EBITDA14.2x
PEG Ratio1152.2x

Price to Earnings Ratio vs Peers

How does CAT's PE Ratio compare to its peers?

The above table shows the PE ratio for CAT vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average20.9x
PCAR PACCAR
12.7x0.05%US$59.1b
CMI Cummins
23.3x7.5%US$48.7b
WAB Westinghouse Air Brake Technologies
33.2x18.4%US$34.8b
ALSN Allison Transmission Holdings
14.2x4.3%US$10.2b
CAT Caterpillar
17.8x0.02%US$197.1b

Price-To-Earnings vs Peers: CAT is good value based on its Price-To-Earnings Ratio (17.8x) compared to the peer average (20.9x).

Price to Earnings Ratio vs Industry

How does CAT's PE Ratio compare vs other companies in the US Machinery Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a8.6%
 n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a8.6%
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No more companies

Price-To-Earnings vs Industry: CAT is good value based on its Price-To-Earnings Ratio (17.8x) compared to the US Machinery industry average (24.9x).

Price to Earnings Ratio vs Fair Ratio

What is CAT's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

CAT PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio17.8x
Fair PE Ratio26.1x

Price-To-Earnings vs Fair Ratio: CAT is good value based on its Price-To-Earnings Ratio (17.8x) compared to the estimated Fair Price-To-Earnings Ratio (26.1x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst CAT forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$393.37
US$366.57
-6.8%
19.6%US$500.00US$250.00n/a21
Nov ’25US$379.63
US$364.67
-3.9%
19.8%US$500.00US$250.00n/a21
Oct ’25US$392.39
US$352.95
-10.1%
18.4%US$464.00US$249.00n/a22
Sep ’25US$356.10
US$347.52
-2.4%
17.6%US$464.00US$249.00n/a23
Aug ’25US$331.52
US$347.49
+4.8%
17.4%US$464.00US$245.00n/a24
Jul ’25US$329.08
US$347.49
+5.6%
16.7%US$464.00US$245.00n/a26
Jun ’25US$338.52
US$345.96
+2.2%
16.7%US$464.00US$245.00n/a26
May ’25US$331.07
US$336.35
+1.6%
18.0%US$441.00US$175.00n/a27
Apr ’25US$363.74
US$320.64
-11.8%
17.6%US$441.00US$175.00n/a27
Mar ’25US$336.70
US$314.03
-6.7%
17.0%US$441.00US$175.00n/a26
Feb ’25US$307.69
US$279.23
-9.2%
17.9%US$432.00US$175.00n/a26
Jan ’25US$295.67
US$268.88
-9.1%
15.5%US$365.00US$175.00n/a25
Dec ’24US$256.76
US$265.84
+3.5%
15.7%US$365.00US$175.00n/a25
Nov ’24US$231.83
US$273.57
+18.0%
16.2%US$365.00US$175.00US$379.6324
Oct ’24US$273.00
US$284.90
+4.4%
15.2%US$364.00US$175.00US$392.3924
Sep ’24US$286.25
US$283.96
-0.8%
15.8%US$364.00US$175.00US$356.1025
Aug ’24US$288.65
US$259.72
-10.0%
16.3%US$351.00US$175.00US$331.5225
Jul ’24US$246.05
US$247.56
+0.6%
15.9%US$351.00US$175.00US$329.0825
Jun ’24US$209.07
US$242.69
+16.1%
15.9%US$345.00US$175.00US$338.5226
May ’24US$217.27
US$244.95
+12.7%
16.3%US$345.00US$175.00US$331.0725
Apr ’24US$228.84
US$251.96
+10.1%
16.0%US$337.00US$175.00US$363.7426
Mar ’24US$248.67
US$253.27
+1.8%
15.1%US$337.00US$175.00US$336.7026
Feb ’24US$249.54
US$254.88
+2.1%
14.1%US$337.00US$190.00US$307.6925
Jan ’24US$239.56
US$234.12
-2.3%
13.0%US$285.00US$175.00US$295.6726
Dec ’23US$235.69
US$230.62
-2.2%
13.6%US$285.00US$174.00US$256.7626
Nov ’23US$218.50
US$225.54
+3.2%
12.4%US$284.00US$174.00US$231.8326

Analyst Forecast: Target price is lower than the current share price.

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