Caterpillar Inc. (CAT)

Annual Data

Quarterly Data

Valuation ratios measure the quantity of an asset or flaw (e.g., earnings) associated with ownership of a specified claim (e.g., a share of ownership of the enterprise).

Current Valuation Ratios
Historical Valuation Ratios (Summary)
Price to Earnings (P/E)
Price to Operating Profit (P/OP)
Price to Sales (P/S)
Price to Book Value (P/BV)

Caterpillar Inc., current price multiples

	Caterpillar Inc.	Illinois Tool Works Inc.	Industrial Engineering	Industrials
Selected Financial Data
Current share price (P)	$
No. shares of common stock outstanding
Growth rate (g)	%

Earnings per share (EPS)	$
Next year expected EPS	$
Operating profit per share	$
Sales per share	$
Book value per share (BVPS)	$
Ratios (Price Multiples)
Price to earnings (P/E)
Price to next year expected earnings
Price to operating profit (P/OP)
Price to sales (P/S)
Price to book value (P/BV)

If company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.

Otherwise, if company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.

Caterpillar Inc., historical price multiples

		Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014	Dec 31, 2013
	Price to earnings (P/E)
	Price to operating profit (P/OP)
	Price to sales (P/S)
	Price to book value (P/BV)

Ratio	Description	The company
P/E ratio	The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings.	Caterpillar Inc.'s P/E ratio declined from 2015 to 2016 but then increased from 2016 to 2017 exceeding 2015 level.
P/OP ratio	Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit.	Caterpillar Inc.'s P/OP ratio increased from 2015 to 2016 but then slightly declined from 2016 to 2017 not reaching 2015 level.
P/S ratio	An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative.	Caterpillar Inc.'s P/S ratio increased from 2015 to 2016 and from 2016 to 2017.
P/BV ratio	The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company's required rate of return and its actual rate of return.	Caterpillar Inc.'s P/BV ratio increased from 2015 to 2016 and from 2016 to 2017.

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

		Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014	Dec 31, 2013
	No. shares of common stock outstanding¹
	Selected Financial Data (USD $)
	Profit (loss) attributable to common stockholders (in millions)
	Earnings per share (EPS)³
	Share price^1, 2
	Ratio
	P/E ratio⁴
	Benchmarks
	P/E Ratio, Competitors
	Illinois Tool Works Inc.
	P/E Ratio, Sector
	Industrial Engineering
	P/E Ratio, Industry
	Industrials

¹ Data adjusted for splits and stock dividends.

² Close price on the filing date of Caterpillar Inc.'s Annual Report.

2017 Calculations

³ EPS = Profit (loss) attributable to common stockholders ÷ No. shares of common stock outstanding
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⁴ P/E ratio = Share price ÷ EPS
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Ratio	Description	The company
P/E ratio	The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings.	Caterpillar Inc.'s P/E ratio declined from 2015 to 2016 but then increased from 2016 to 2017 exceeding 2015 level.

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

		Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014	Dec 31, 2013
	No. shares of common stock outstanding¹
	Selected Financial Data (USD $)
	Operating profit (in millions)
	Operating profit per share³
	Share price^1, 2
	Ratio
	P/OP ratio⁴
	Benchmarks
	P/OP Ratio, Competitors
	Illinois Tool Works Inc.
	P/OP Ratio, Sector
	Industrial Engineering
	P/OP Ratio, Industry
	Industrials

¹ Data adjusted for splits and stock dividends.

² Close price on the filing date of Caterpillar Inc.'s Annual Report.

2017 Calculations

³ Operating profit per share = Operating profit ÷ No. shares of common stock outstanding
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⁴ P/OP ratio = Share price ÷ Operating profit per share
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Ratio	Description	The company
P/OP ratio	Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit.	Caterpillar Inc.'s P/OP ratio increased from 2015 to 2016 but then slightly declined from 2016 to 2017 not reaching 2015 level.

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

		Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014	Dec 31, 2013
	No. shares of common stock outstanding¹
	Selected Financial Data (USD $)
	Sales of Machinery, Energy & Transportation (in millions)
	Sales per share³
	Share price^1, 2
	Ratio
	P/S ratio⁴
	Benchmarks
	P/S Ratio, Competitors
	Illinois Tool Works Inc.
	P/S Ratio, Sector
	Industrial Engineering
	P/S Ratio, Industry
	Industrials

¹ Data adjusted for splits and stock dividends.

² Close price on the filing date of Caterpillar Inc.'s Annual Report.

2017 Calculations

³ Sales per share = Sales of Machinery, Energy & Transportation ÷ No. shares of common stock outstanding
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⁴ P/S ratio = Share price ÷ Sales per share
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Ratio	Description	The company
P/S ratio	An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative.	Caterpillar Inc.'s P/S ratio increased from 2015 to 2016 and from 2016 to 2017.

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

		Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014	Dec 31, 2013
	No. shares of common stock outstanding¹
	Selected Financial Data (USD $)
	Equity attributable to common stockholders (in millions)
	Book value per share (BVPS)³
	Share price^1, 2
	Ratio
	P/BV ratio⁴
	Benchmarks
	P/BV Ratio, Competitors
	Illinois Tool Works Inc.
	P/BV Ratio, Sector
	Industrial Engineering
	P/BV Ratio, Industry
	Industrials

¹ Data adjusted for splits and stock dividends.

² Close price on the filing date of Caterpillar Inc.'s Annual Report.

2017 Calculations

³ BVPS = Equity attributable to common stockholders ÷ No. shares of common stock outstanding
= hidden ÷ hidden = hidden

⁴ P/BV ratio = Share price ÷ BVPS
= hidden ÷ hidden = hidden

Ratio	Description	The company
P/BV ratio	The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company's required rate of return and its actual rate of return.	Caterpillar Inc.'s P/BV ratio increased from 2015 to 2016 and from 2016 to 2017.

	Caterpillar Inc.	Other companies (not purchased previously)
Financial Statements
Common-Size Financial Statements
Ratios
Relative Valuation
Discounted Cash Flow (DCF) Valuation
Economic Value Added (EVA)
Long-term Trends
Analysis
Financial Reporting Quality

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Financial Statements
Common-Size Financial Statements
Ratios
Relative Valuation
Discounted Cash Flow (DCF) Valuation
Economic Value Added (EVA)
Long-term Trends
Analysis
Financial Reporting Quality

Common Stock Valuation Ratios (Price Multiples)

Current Valuation Ratios

Historical Valuation Ratios (Summary)

Price to Earnings (P/E)

Price to Operating Profit (P/OP)

Price to Sales (P/S)

Price to Book Value (P/BV)