Caterpillar Inc., FCFE calculation

US$ in millions

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Profit attributable to common stockholders	10,335)	6,705)	6,489)	2,998)	6,093)
(Profit) loss attributable to noncontrolling interests	(3)	(1)	4)	5)	1)
Net noncash charges	2,402)	2,862)	1,352)	3,741)	3,748)
Changes in assets and liabilities, net of acquisitions and divestitures	151)	(1,800)	(647)	(417)	(2,930)
Net cash provided by operating activities	12,885)	7,766)	7,198)	6,327)	6,912)
Capital expenditures, excluding equipment leased to others	(1,597)	(1,296)	(1,093)	(978)	(1,056)
Expenditures for equipment leased to others	(1,495)	(1,303)	(1,379)	(1,137)	(1,613)
Proceeds from disposals of leased assets and property, plant and equipment	781)	830)	1,265)	772)	1,153)
Proceeds from debt issued, original maturities greater than three months	8,257)	6,674)	6,989)	10,431)	9,841)
Payments on debt, original maturities greater than three months	(6,318)	(7,728)	(9,796)	(8,237)	(8,297)
Short-term borrowings, net, original maturities three months or less	(1,345)	402)	3,488)	(2,804)	(138)
Free cash flow to equity (FCFE)	11,168)	5,345)	6,672)	4,374)	6,802)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

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Item	Description	The company
FCFE	Free cash flow to equity is the cash flow available to Caterpillar Inc. equity holders after all operating expenses, interest, and principal payments have been paid and necessary investments in working and fixed capital have been made.	Caterpillar Inc. FCFE decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.

Caterpillar Inc., current P/FCFE calculation, comparison to benchmarks

No. shares of common stock outstanding	499,377,269
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)	11,168)
FCFE per share	22.36
Current share price (P)	358.32
Valuation Ratio
P/FCFE	16.02
Benchmarks
P/FCFE, Competitors¹
Boeing Co.	—
Cummins Inc.	24.33
Eaton Corp. plc	36.12
General Electric Co.	256.70
Honeywell International Inc.	25.20
Lockheed Martin Corp.	13.62
RTX Corp.	7.70
P/FCFE, Sector
Capital Goods	21.12
P/FCFE, Industry
Industrials	22.80

Based on: 10-K (reporting date: 2023-12-31).

¹ Click competitor name to see calculations.

If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.

Caterpillar Inc., historical P/FCFE calculation, comparison to benchmarks

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
No. shares of common stock outstanding¹	499,377,269	516,345,490	535,888,051	545,303,847	550,082,610
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)²	11,168)	5,345)	6,672)	4,374)	6,802)
FCFE per share³	22.36	10.35	12.45	8.02	12.37
Share price^1, 4	321.91	248.70	203.64	202.30	136.86
Valuation Ratio
P/FCFE⁵	14.39	24.03	16.36	25.22	11.07
Benchmarks
P/FCFE, Competitors⁶
Boeing Co.	—	120.43	—	6.78	19.60
Cummins Inc.	21.45	9.10	20.97	9.53	10.85
Eaton Corp. plc	33.65	28.68	24.43	25.59	11.12
General Electric Co.	225.15	44.45	—	—	—
Honeywell International Inc.	26.10	27.59	46.23	12.59	21.75
Lockheed Martin Corp.	13.13	11.63	14.65	15.57	28.62
RTX Corp.	7.05	26.71	35.07	—	28.09
P/FCFE, Sector
Capital Goods	20.30	24.08	—	56.46	26.31
P/FCFE, Industry
Industrials	22.78	22.81	—	43.78	27.50

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

¹ Data adjusted for splits and stock dividends.

² See details »

³ 2023 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 11,168,000,000 ÷ 499,377,269 = 22.36

⁴ Closing price as at the filing date of Caterpillar Inc. Annual Report.

⁵ 2023 Calculation
P/FCFE = Share price ÷ FCFE per share
= 321.91 ÷ 22.36 = 14.39

⁶ Click competitor name to see calculations.

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Valuation ratio	Description	The company
P/FCFE	Price to free cash flow to equity is cash valuation indicator of stockholders’ equity.	Caterpillar Inc. P/FCFE ratio increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.

Caterpillar Inc. (NYSE:CAT)

Price to FCFE (P/FCFE)

Free Cash Flow to Equity (FCFE)

Price to FCFE Ratio, Current

Price to FCFE Ratio, Historical