Stock Analysis on Net

Caterpillar Inc. (NYSE:CAT)

Common Stock Valuation Ratios (Price Multiples)

Microsoft Excel

Current Valuation Ratios

Caterpillar Inc., current price multiples

Microsoft Excel
Caterpillar Inc. Boeing Co. Cummins Inc. General Electric Co. Honeywell International Inc. Lockheed Martin Corp. RTX Corp. Capital Goods Industrials
Selected Financial Data
Current share price (P) $364.65
No. shares of common stock outstanding 499,377,269
Growth rate (g) 22.50%
 
Earnings per share (EPS) $20.70
Next year expected EPS $25.35
Operating profit per share $25.96
Sales per share $127.90
Book value per share (BVPS) $39.04
Valuation Ratios (Price Multiples)
Price to earnings (P/E) 17.62 56.88 21.34 23.64 15.95 40.47 26.93 26.89
Price to next year expected earnings 14.38 48.77 21.00 20.38 10.11 39.66 26.71 27.03
Price-earnings-growth (PEG) 0.78 3.42 12.98 1.48 0.28 19.71 31.71
Price to operating profit (P/OP) 14.04 23.74 35.76 18.89 12.97 36.31 23.60 22.57
Price to sales (P/S) 2.85 1.51 1.23 3.04 3.65 1.63 1.88 2.20 2.16
Price to book value (P/BV) 9.34 4.72 7.16 8.44 16.15 2.16 7.53 7.45

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

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


Historical Valuation Ratios (Summary)

Caterpillar Inc., historical price multiples

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Price to earnings (P/E) 15.55 19.15 16.82 36.80 12.36
Price to operating profit (P/OP) 12.40 16.25 15.87 24.23 9.08
Price to sales (P/S) 2.52 2.27 2.26 2.83 1.48
Price to book value (P/BV) 8.25 8.09 6.62 7.20 5.16

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).

Valuation 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. P/E ratio increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.
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. P/OP ratio increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.
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. P/S ratio increased from 2021 to 2022 and from 2022 to 2023.
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company required rate of return and its actual rate of return. Caterpillar Inc. P/BV ratio increased from 2021 to 2022 and from 2022 to 2023.

Price to Earnings (P/E)

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

Microsoft Excel
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$)
Profit attributable to common stockholders (in millions) 10,335 6,705 6,489 2,998 6,093
Earnings per share (EPS)2 20.70 12.99 12.11 5.50 11.08
Share price1, 3 321.91 248.70 203.64 202.30 136.86
Valuation Ratio
P/E ratio4 15.55 19.15 16.82 36.80 12.36
Benchmarks
P/E Ratio, Competitors5
Boeing Co.
Cummins Inc. 49.57 16.33 14.94 20.23 10.92
General Electric Co. 16.18 19.67
Honeywell International Inc. 22.73 26.97 23.14 29.63 20.97
Lockheed Martin Corp. 15.35 20.48 16.70 13.44 19.87
RTX Corp. 38.31 27.59 36.79 24.41
P/E Ratio, Sector
Capital Goods 24.60 39.14 55.30 113.37 38.18
P/E Ratio, Industry
Industrials 25.47 35.70 32.59 151.48 48.27

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 2023 Calculation
EPS = Profit attributable to common stockholders ÷ No. shares of common stock outstanding
= 10,335,000,000 ÷ 499,377,269 = 20.70

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

4 2023 Calculation
P/E ratio = Share price ÷ EPS
= 321.91 ÷ 20.70 = 15.55

5 Click competitor name to see calculations.

Valuation 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. P/E ratio increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.

Price to Operating Profit (P/OP)

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

Microsoft Excel
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$)
Operating profit (in millions) 12,966 7,904 6,878 4,553 8,290
Operating profit per share2 25.96 15.31 12.83 8.35 15.07
Share price1, 3 321.91 248.70 203.64 202.30 136.86
Valuation Ratio
P/OP ratio4 12.40 16.25 15.87 24.23 9.08
Benchmarks
P/OP Ratio, Competitors5
Boeing Co.
Cummins Inc. 20.69 11.99 11.76 15.95 9.14
General Electric Co. 27.11 19.88 17.46 25.64 9.22
Honeywell International Inc. 18.15 20.84 20.68 24.86 18.81
Lockheed Martin Corp. 12.49 14.06 11.56 10.63 14.49
RTX Corp. 34.37 26.48 28.68 15.07
P/OP Ratio, Sector
Capital Goods 21.56 24.21 22.38 67.23 17.27
P/OP Ratio, Industry
Industrials 21.38 19.84 21.37 47.82 19.18

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 2023 Calculation
Operating profit per share = Operating profit ÷ No. shares of common stock outstanding
= 12,966,000,000 ÷ 499,377,269 = 25.96

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

4 2023 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 321.91 ÷ 25.96 = 12.40

5 Click competitor name to see calculations.

Valuation 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. P/OP ratio increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.

Price to Sales (P/S)

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

Microsoft Excel
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$)
Sales of Machinery, Energy & Transportation (in millions) 63,869 56,574 48,188 39,022 50,755
Sales per share2 127.90 109.57 89.92 71.56 92.27
Share price1, 3 321.91 248.70 203.64 202.30 136.86
Valuation Ratio
P/S ratio4 2.52 2.27 2.26 2.83 1.48
Benchmarks
P/S Ratio, Competitors5
Boeing Co. 1.66 1.90 1.87 1.96 2.34
Cummins Inc. 1.07 1.25 1.33 1.83 1.05
General Electric Co. 2.30 1.20 1.50 1.41 1.18
Honeywell International Inc. 3.51 3.78 3.73 4.34 3.51
Lockheed Martin Corp. 1.57 1.78 1.57 1.40 2.07
RTX Corp. 1.78 2.14 2.21 1.95 1.75
P/S Ratio, Sector
Capital Goods 2.01 1.97 1.99 2.05 1.87
P/S Ratio, Industry
Industrials 2.05 1.83 2.07 2.13 1.84

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 2023 Calculation
Sales per share = Sales of Machinery, Energy & Transportation ÷ No. shares of common stock outstanding
= 63,869,000,000 ÷ 499,377,269 = 127.90

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

4 2023 Calculation
P/S ratio = Share price ÷ Sales per share
= 321.91 ÷ 127.90 = 2.52

5 Click competitor name to see calculations.

Valuation 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. P/S ratio increased from 2021 to 2022 and from 2022 to 2023.

Price to Book Value (P/BV)

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

Microsoft Excel
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$)
Equity attributable to common shareholders (in millions) 19,494 15,869 16,484 15,331 14,588
Book value per share (BVPS)2 39.04 30.73 30.76 28.11 26.52
Share price1, 3 321.91 248.70 203.64 202.30 136.86
Valuation Ratio
P/BV ratio4 8.25 8.09 6.62 7.20 5.16
Benchmarks
P/BV Ratio, Competitors5
Boeing Co.
Cummins Inc. 4.12 3.91 3.76 4.49 3.29
General Electric Co. 5.43 2.43 2.64 2.89 3.66
Honeywell International Inc. 8.11 8.02 6.91 8.07 6.97
Lockheed Martin Corp. 15.54 12.67 9.62 15.27 39.60
RTX Corp. 2.05 1.97 1.95 1.53 3.24
P/BV Ratio, Sector
Capital Goods 6.88 5.37 4.84 5.19 7.33
P/BV Ratio, Industry
Industrials 7.06 5.66 5.56 6.11 6.88

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 2023 Calculation
BVPS = Equity attributable to common shareholders ÷ No. shares of common stock outstanding
= 19,494,000,000 ÷ 499,377,269 = 39.04

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

4 2023 Calculation
P/BV ratio = Share price ÷ BVPS
= 321.91 ÷ 39.04 = 8.25

5 Click competitor name to see calculations.

Valuation 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 required rate of return and its actual rate of return. Caterpillar Inc. P/BV ratio increased from 2021 to 2022 and from 2022 to 2023.