Stock Analysis on Net

Caterpillar Inc. (NYSE:CAT)

$24.99

Price to Book Value (P/BV)
since 2005

Microsoft Excel

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Calculation

Caterpillar Inc., P/BV, long-term trends, calculation

Microsoft Excel

Based on: 10-K (reporting date: 2024-12-31), 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), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).

1 US$

2 Data adjusted for splits and stock dividends.

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


Share Price Trends
The share price exhibits significant fluctuations over the observed period. Starting at $73.06 in early 2006, it declined notably to a low of $26.66 by February 2009, likely reflecting broader market or company-specific challenges. Following this trough, the share price demonstrated a strong upward trend, reaching $102.01 by February 2011. The price then maintained a generally positive trajectory, with some short-term declines, ultimately peaking at $353.32 in February 2025. This indicates a substantial overall gain in shareholder value across the nearly two decades, more than quadrupling in the last five years of the dataset.
Book Value per Share (BVPS) Development
The BVPS data shows an overall increasing trend throughout the timeframe, though with certain fluctuations. It began at $12.57 in 2006, dropped to about $10.12 in 2009, coinciding with the low point in share price, and then recovered steadily. By 2013, BVPS had risen substantially to $26.76 and experienced some variability around the mid-20s before continuing to increase sharply from 2019 onward. By 2025, the BVPS reached $40.78, indicating consistent growth in the company’s net asset value on a per-share basis over the long term.
Price-to-Book Value (P/BV) Ratio Analysis
The P/BV ratio presents a notable volatility pattern, reflecting changing market perceptions relative to the underlying book value. It started at a high multiple of 5.81 in 2006, peaked at 6.33 in 2007, and then dropped sharply to 2.63 in 2009, in line with the financial crisis period and the observed decline in share price. Following 2009, the ratio fluctuated between approximately 2.56 and 6.98, indicating periods where the market valued the company close to or well above its book value. From 2017 onward, the ratio trended upwards again, surpassing 8.0 by 2024 and continuing to 8.66 by 2025, showing that the market increasingly valued the company at a high premium relative to its book value. This suggests growing investor confidence and possibly expectations of higher future earnings growth or intangible asset value not fully captured by the book value adjustments.
Overall Financial Insights
The financial data indicates a recovery and strong growth scenario following the 2008-2009 downturn, with the company improving its intrinsic value as measured by book value per share and achieving substantial market valuation increases as reflected in the share price and P/BV ratio. The rising P/BV ratio in recent years may warrant close attention to underlying asset quality and earnings prospects, as the valuation premium suggests optimism or speculative factors influencing investor behavior. The trends collectively point to a company that has successfully navigated challenging economic conditions and attracted increased investor interest over time.

Comparison to Competitors

Caterpillar Inc., P/BV, long-term trends, comparison to competitors

Microsoft Excel

Based on: 10-K (reporting date: 2024-12-31), 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), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).


Comparison to Sector (Capital Goods)


Comparison to Industry (Industrials)