Caterpillar Inc. (Caterpillar) operates as a manufacturer of construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives worldwide.
Categories of Business Organization
Mach…
Analysis
Hope premium
Caterpillar Inc. is priced well ahead of what the underlying numbers justify, a pattern we describe as a hope premium. Worth noting: the cash the business generates has lagged behind what the income statement shows.
On valuation, the picture is expensive. The owner-earnings multiple stands at 56.8×; owner earnings: the cash an owner could take out each year. The implied growth embedded in that price is around 20% a year, against analyst forecasts of 17%. The price, in other words, assumes less than the experts do.
Growth is solid; the safety picture is stretched. The company scores 14/20 on our value-creation score: strong value creator.
Flags to be aware of: The financial cushion is thinner than comfortable. Reported profits have run ahead of actual cash for several periods. As always: this describes the company's numbers; it is not a recommendation.
360° rank · history
1007550250
Jan 202358
33
2023202420252026
All-time high
58
Jan 2023
All-time low
4
Jan 2025
Average rank
33
across all years
Detailed & Historical Ranks
Deep dive into 15 detailed ranks and 3 years of history.
Current202520242023
Price/Sales
15
29
30
45
Price/Earnings
12
56
63
65
Price/Book
3
1
1
1
Dividend Yield
63
80
85
86
Value (overall)
14
29
35
46
Cells are coloured by rank band (red weak → green strong). Sentiment & 360° history begins 2023.