Caterpillar Inc.

SWX:CAT Stock Report

Market Cap: CHF 333.9b

Caterpillar Valuation

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

Valuation Score

2/6

Valuation Score 2/6

  • Below Future Cash Flow Value

  • Significantly Below Future Cash Flow 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.

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Learn how to determine fair value like the best investors in the world.

Below Future Cash Flow Value: CAT (CHF729.1) is trading below our estimate of future cash flow value (CHF765)

Significantly Below Future Cash Flow Value: CAT is trading below future cash flow value, but not by a significant amount.

Key Valuation Metric

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

Key metric: As CAT is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for CAT. This is calculated by dividing CAT's market cap by their current earnings.
What is CAT's PE Ratio?
PE Ratio43.4x
EarningsUS$9.43b
Market CapUS$409.91b

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 Average25.4x
BUCN Bucher Industries
13.8x-1.93%CHF 3.3b
SRAIL Stadler Rail
27x28.56%CHF 2.4b
ABBN ABB
35.8x7.50%CHF 146.5b
SCHN Schindler Holding
25.1x7.05%CHF 26.0b
CAT Caterpillar
43.4x16.94%CHF 409.9b

Price-To-Earnings vs Peers: CAT is expensive based on its Price-To-Earnings Ratio (43.4x) compared to the peer average (25.5x).

Historical Price to Earnings Ratio

Historical Price to Earnings Ratio compares a stock's price to its earnings over time. Higher ratios indicate that investors are willing to pay more for the stock.

Fetching historical data

Price to Earnings Ratio vs Industry

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

6 CompaniesPrice / EarningsEstimated GrowthMarket Cap
CAT 43.4xIndustry Avg. 21.6xNo. of Companies28PE01224364860+
6 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: CAT is expensive based on its Price-To-Earnings Ratio (43.4x) compared to the European Machinery industry average (21.4x).

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 Ratio43.4x
Fair PE Ratio52.5x

Price-To-Earnings vs Fair Ratio: CAT is good value based on its Price-To-Earnings Ratio (43.4x) compared to the estimated Fair Price-To-Earnings Ratio (52.5x).

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
CurrentCHF 729.10
CHF 788.58
+8.16%
15.86%CHF 989.82CHF 467.28n/a26
Jul ’27CHF 821.90
CHF 769.85
-6.33%
14.94%CHF 971.40CHF 465.46n/a26
Jun ’27CHF 680.09
CHF 723.79
+6.43%
15.89%CHF 916.40CHF 452.30n/a26
May ’27CHF 690.45
CHF 676.81
-1.98%
18.21%CHF 910.67CHF 449.47n/a26
Apr ’27CHF 577.72
CHF 593.42
+2.72%
14.05%CHF 701.64CHF 339.82n/a26
Mar ’27CHF 573.16
CHF 560.79
-2.16%
13.85%CHF 678.28CHF 328.50n/a26
Feb ’27CHF 502.12
CHF 505.78
+0.73%
17.67%CHF 622.27CHF 293.74n/a25
Jan ’27CHF 459.07
CHF 475.85
+3.66%
16.23%CHF 578.96CHF 301.38n/a25
Dec ’26CHF 451.83
CHF 472.98
+4.68%
17.00%CHF 587.53CHF 305.84n/a25
Nov ’26n/a
CHF 441.72
0%
19.79%CHF 587.39CHF 305.77n/a23
Oct ’26n/a
CHF 366.95
0%
11.26%CHF 430.38CHF 278.95n/a22
Sep ’26n/a
CHF 360.68
0%
10.25%CHF 411.39CHF 280.13n/a22
Aug ’26n/a
CHF 323.80
0%
14.13%CHF 401.61CHF 227.31n/a23
Jul ’26n/a
CHF 297.55
0%
11.09%CHF 352.60CHF 224.24CHF 821.9025
Jun ’26n/a
CHF 304.41
0%
10.06%CHF 349.66CHF 232.83CHF 680.0925
May ’26n/a
CHF 296.50
0%
14.90%CHF 354.57CHF 201.59CHF 690.4524
Apr ’26n/a
CHF 341.91
0%
13.73%CHF 433.11CHF 220.97CHF 577.7223
Mar ’26n/a
CHF 351.72
0%
13.60%CHF 440.63CHF 224.81CHF 573.1623
Feb ’26n/a
CHF 357.20
0%
14.83%CHF 448.84CHF 227.68CHF 502.1223
Jan ’26n/a
CHF 355.03
0%
17.55%CHF 465.48CHF 225.96CHF 459.0722
Dec ’25n/a
CHF 335.91
0%
18.63%CHF 443.11CHF 221.55CHF 451.8321
Nov ’25n/a
CHF 317.48
0%
19.80%CHF 435.30CHF 217.65n/a21
Oct ’25CHF 258.00
CHF 298.68
+15.77%
18.36%CHF 392.65CHF 210.71n/a22
Sep ’25CHF 258.00
CHF 299.79
+16.20%
17.62%CHF 400.27CHF 214.80n/a23
Aug ’25CHF 258.00
CHF 307.95
+19.36%
17.44%CHF 411.19CHF 217.12n/a24
Jul ’25CHF 258.00
CHF 313.80
+21.63%
16.69%CHF 419.02CHF 221.25n/a26
CHF 795.56
Fair Value
8.4% undervalued intrinsic discount
26
Number of Analysts

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2026/07/22 19:31
End of Day Share Price 2026/07/22 00:00
Earnings2026/03/31
Annual Earnings2025/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Caterpillar Inc. is covered by 59 analysts. 18 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
John EadeArgus Research Company
Mircea DobreBaird
Adam SeidenBarclays