CATCaterpillar Inc.
Is the price fair?
A demanding price: priced for +16% a year vs +5% a year delivered, at the top of its own P/E range, and rich vs its sector.
Priced for ~16% a year FCF growth. The price demands more than its three-year revenue growth of 5% a year, priced for acceleration.
Expensive vs its own history: P/E 34.4 vs a 17.6 median over 38 quarters (+96% vs median).
Sector median 23.3× across 246 covered peers. EV/EBIT counts debt as part of the price, so a cash-rich and a borrowed company can be compared on the same footing.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The growth-implied estimate assumes a fixed discount rate; capital-heavy sectors look structurally rich on it.
What CAT's price assumes
Caterpillar Inc. trades at 34.4× earnings against 24.5× for the median Farm & Heavy Construction Machinery name, more expensive than its own group.
Trailing P/E · Farm & Heavy Construction Machinery median 24.5 · 1.41× the median: the market pays up for this one
- Price / sales
- 6.72
Price / sales · today's price, fiscal year to Dec 31, 2025
- Free cash flow yield
- 2.4%
Free cash flow yield · Farm & Heavy Construction Machinery median 4.0%
- Growth the price implies
- +16%
Growth the price implies · The price pays for +16% free cash flow growth a year for a decade; the business has delivered +7.3% a year over the last three.
Details›
- Price / booktoday's price, fiscal year to Dec 31, 2025
- 21.3
- EV / EBITtoday's price, fiscal year to Dec 31, 2025
- 43.1
- EV / salestoday's price, fiscal year to Dec 31, 2025
- 7.11
- Industrials median P/E440 names
- 26.5
- Farm & Heavy Construction Machinery median P/E18 names
- 24.5
- Free cash flow, trailing twelve months
- $10.7B
- Market capitalisation
- $454.1B
- 3-year revenue growth
- +4.9%
- 3-year free cash flow growth
- +7.3%
| Method | Per share |
|---|---|
| Its own P/E history, lower quartile | $340.90 |
| Its own P/E history, median | $407.97 |
| Its own P/E history, upper quartile | $630.28 |
| 52-week range | $460.44 – $1,022.28 |
| Today | $800.38 |
Multiples from SEC filings and end-of-day closes; implied growth from a reverse discounted cash flow. Group medians across the names Ryufin tracks.
Farm & Heavy Construction Machinery
The closest names by size in the same industry