Caterpillar Inc (CAT) is now in the Overvalued zone, suggesting that its current forward PE ratio of 28.87 is considered Overvalued compared with the five-year average of 16.90. The fair price of Caterpillar Inc (CAT) is between 385.28 to 553.62 according to relative valuation method. Compared to the current price of 745.30 USD , Caterpillar Inc By Overvalued By 34.62%.

Relative Value

Fair Zone

385.28-553.62

Current Price：745.30

34.62%

Overvalued

P/E

EV/EBITDA

EV/EBIT

P/S

P/OCF

P/FCF

Trailing

Forward

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Caterpillar Inc (CAT) has a current Price-to-Book (P/B) ratio of 13.56. Compared to its 3-year average P/B ratio of 8.95, the current P/B ratio is approximately 51.55% higher. Relative to its 5-year average P/B ratio of 8.12, the current P/B ratio is about 66.90% higher. Caterpillar Inc (CAT) has a Forward Free Cash Flow (FCF) yield of approximately 2.70%. Compared to its 3-year average FCF yield of 5.24%, the current FCF yield is approximately -48.47% lower. Relative to its 5-year average FCF yield of 4.68%, the current FCF yield is about -42.32% lower.

Competitors Valuation Multiple

AI Analysis

The average P/S ratio for CAT competitors is 2.50, providing a benchmark for relative valuation. Caterpillar Inc Corp (CAT.N) exhibits a P/S ratio of 3.99, which is 59.58% above the industry average. Given its robust revenue growth of 18.00%, this premium appears unsustainable.

P/E

P/S

EV/EBITDA

EV/EBIT

Earnings Growth

Market Cap

Performance Decomposition

AI Analysis

Market capitalization of CAT increased by 0.00% over the past 1 year(s). The primary factor behind the change was an decrease in Unknown from 0.00 to 0.00.

The secondary factor is the Unknown, contributed 0.00% to the performance.

Overall, the performance of CAT in the past 1 year(s) is driven by Unknown.

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Frequently Asked Questions

Is CAT currently overvalued or undervalued?

What is Caterpillar Inc (CAT) fair value?

CAT's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. The fair price of Caterpillar Inc (CAT) is between 385.28 to 553.62 according to relative valuation method.

How does CAT's valuation metrics compare to the industry average?

The average P/S ratio for CAT's competitors is 2.50, providing a benchmark for relative valuation. Caterpillar Inc Corp (CAT) exhibits a P/S ratio of 3.99, which is 59.58% above the industry average. Given its robust revenue growth of 18.00%, this premium appears unsustainable.

What is the current P/B ratio for Caterpillar Inc (CAT) as of Mar 02 2026?

As of Mar 02 2026, Caterpillar Inc (CAT) has a P/B ratio of 13.56. This indicates that the market values CAT at 13.56 times its book value.

What is the current FCF Yield for Caterpillar Inc (CAT) as of Mar 02 2026?

As of Mar 02 2026, Caterpillar Inc (CAT) has a FCF Yield of 2.70%. This means that for every dollar of Caterpillar Inc's market capitalization, the company generates 2.70 cents in free cash flow.

What is the current Forward P/E ratio for Caterpillar Inc (CAT) as of Mar 02 2026?

As of Mar 02 2026, Caterpillar Inc (CAT) has a Forward P/E ratio of 28.87. This means the market is willing to pay $28.87 for every dollar of Caterpillar Inc's expected earnings over the next 12 months.

What is the current Forward P/S ratio for Caterpillar Inc (CAT) as of Mar 02 2026?

As of Mar 02 2026, Caterpillar Inc (CAT) has a Forward P/S ratio of 3.99. This means the market is valuing CAT at $3.99 for every dollar of expected revenue over the next 12 months.

CAT Valuation