Stock Analysis on Net

Caterpillar Inc. (NYSE:CAT)

Common Stock Valuation Ratios (Price Multiples) 

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Current Valuation Ratios

Caterpillar Inc., current price multiples

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Caterpillar Inc. 3M Co. Boeing Co. General Electric Co. Honeywell International Inc. Lockheed Martin Corp. Raytheon Technologies Corp. Capital Goods Industrials
Selected Financial Data
Current share price (P) $197.82
No. shares of common stock outstanding 533,353,205
Growth rate (g) 16.17%
 
Earnings per share (EPS) $12.17
Next year expected EPS $14.13
Operating profit per share $12.90
Sales per share $90.35
Book value per share (BVPS) $30.91
Valuation Ratios (Price Multiples)
Price to earnings (P/E) 16.26 13.82 23.31 17.87 34.67 41.79 25.81
Price to next year expected earnings 14.00 11.81 20.59 10.47 33.06 42.51 54.19
Price-earnings-growth (PEG) 1.01 0.81 1.77 0.25 7.14
Price to operating profit (P/OP) 15.34 11.11 13.59 20.83 12.37 27.02 19.02 15.80
Price to sales (P/S) 2.19 2.32 1.15 1.17 3.76 1.68 2.08 1.87 1.81
Price to book value (P/BV) 6.40 5.44 2.05 6.96 10.30 1.83 4.50 5.14

Based on: 10-K (reporting date: 2021-12-31).

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

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Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Price to earnings (P/E) 16.82 36.80 12.36 12.42 126.80
Price to operating profit (P/OP) 15.87 24.23 9.08 9.20 21.70
Price to sales (P/S) 2.26 2.83 1.48 1.47 2.24
Price to book value (P/BV) 6.62 7.20 5.16 5.44 6.98

Based on: 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).

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 2019 to 2020 but then slightly decreased from 2020 to 2021 not reaching 2019 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. P/OP ratio increased from 2019 to 2020 but then slightly decreased from 2020 to 2021 not reaching 2019 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. P/S ratio increased from 2019 to 2020 but then slightly decreased from 2020 to 2021.
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 2019 to 2020 but then slightly decreased from 2020 to 2021.

Price to Earnings (P/E)

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

Microsoft Excel LibreOffice Calc
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
No. shares of common stock outstanding1 535,888,051 545,303,847 550,082,610 575,542,738 597,625,772
Selected Financial Data (US$)
Profit attributable to common stockholders (in millions) 6,489  2,998  6,093  6,147  754 
Earnings per share (EPS)2 12.11 5.50 11.08 10.68 1.26
Share price1, 3 203.64 202.30 136.86 132.62 159.98
Valuation Ratio
P/E ratio4 16.82 36.80 12.36 12.42 126.80
Benchmarks
P/E Ratio, Competitors5
3M Co. 15.78 19.05 20.52 21.51 27.32
Boeing Co. 21.87 24.68
General Electric Co. 19.67
Honeywell International Inc. 23.14 29.63 20.97 16.02 67.20
Lockheed Martin Corp. 16.70 13.44 19.87 16.88 48.70
Raytheon Technologies Corp. 36.79 24.41 19.74 21.97
P/E Ratio, Sector
Capital Goods 46.68 78.67 37.33 49.93 54.77
P/E Ratio, Industry
Industrials 29.80 957.20 27.64 28.84 24.84

Based on: 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).

1 Data adjusted for splits and stock dividends.

2 2021 Calculation
EPS = Profit attributable to common stockholders ÷ No. shares of common stock outstanding
= 6,489,000,000 ÷ 535,888,051 = 12.11

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

4 2021 Calculation
P/E ratio = Share price ÷ EPS
= 203.64 ÷ 12.11 = 16.82

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 2019 to 2020 but then slightly decreased from 2020 to 2021 not reaching 2019 level.

Price to Operating Profit (P/OP)

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

Microsoft Excel LibreOffice Calc
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
No. shares of common stock outstanding1 535,888,051 545,303,847 550,082,610 575,542,738 597,625,772
Selected Financial Data (US$)
Operating profit (in millions) 6,878  4,553  8,290  8,293  4,406 
Operating profit per share2 12.83 8.35 15.07 14.41 7.37
Share price1, 3 203.64 202.30 136.86 132.62 159.98
Valuation Ratio
P/OP ratio4 15.87 24.23 9.08 9.20 21.70
Benchmarks
P/OP Ratio, Competitors5
3M Co. 12.68 14.32 15.19 15.97 16.97
Boeing Co. 19.08 19.69
General Electric Co. 17.46 25.64 9.22 8.57 12.27
Honeywell International Inc. 20.68 24.86 18.81 16.16 15.55
Lockheed Martin Corp. 11.56 10.63 14.49 11.62 16.47
Raytheon Technologies Corp. 28.68 15.07 12.16 11.53
P/OP Ratio, Sector
Capital Goods 21.25 50.19 17.46 13.31 15.87
P/OP Ratio, Industry
Industrials 18.24 70.80 14.49 12.61 13.63

Based on: 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).

1 Data adjusted for splits and stock dividends.

2 2021 Calculation
Operating profit per share = Operating profit ÷ No. shares of common stock outstanding
= 6,878,000,000 ÷ 535,888,051 = 12.83

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

4 2021 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 203.64 ÷ 12.83 = 15.87

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 2019 to 2020 but then slightly decreased from 2020 to 2021 not reaching 2019 level.

Price to Sales (P/S)

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

Microsoft Excel LibreOffice Calc
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
No. shares of common stock outstanding1 535,888,051 545,303,847 550,082,610 575,542,738 597,625,772
Selected Financial Data (US$)
Sales of Machinery, Energy & Transportation (in millions) 48,188  39,022  50,755  51,822  42,676 
Sales per share2 89.92 71.56 92.27 90.04 71.41
Share price1, 3 203.64 202.30 136.86 132.62 159.98
Valuation Ratio
P/S ratio4 2.26 2.83 1.48 1.47 2.24
Benchmarks
P/S Ratio, Competitors5
3M Co. 2.64 3.19 2.92 3.51 4.19
Boeing Co. 1.87 1.96 2.34 2.26 2.17
General Electric Co. 1.50 1.41 1.18 0.82 1.11
Honeywell International Inc. 3.73 4.34 3.51 2.59 2.74
Lockheed Martin Corp. 1.57 1.40 2.07 1.58 1.91
Raytheon Technologies Corp. 2.21 1.95 1.75 1.56 1.67
P/S Ratio, Sector
Capital Goods 2.09 2.17 2.00 1.76 2.00
P/S Ratio, Industry
Industrials 2.09 2.16 1.81 1.68 1.84

Based on: 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).

1 Data adjusted for splits and stock dividends.

2 2021 Calculation
Sales per share = Sales of Machinery, Energy & Transportation ÷ No. shares of common stock outstanding
= 48,188,000,000 ÷ 535,888,051 = 89.92

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

4 2021 Calculation
P/S ratio = Share price ÷ Sales per share
= 203.64 ÷ 89.92 = 2.26

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 2019 to 2020 but then slightly decreased from 2020 to 2021.

Price to Book Value (P/BV)

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

Microsoft Excel LibreOffice Calc
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
No. shares of common stock outstanding1 535,888,051 545,303,847 550,082,610 575,542,738 597,625,772
Selected Financial Data (US$)
Equity attributable to common shareholders (in millions) 16,484  15,331  14,588  14,039  13,697 
Book value per share (BVPS)2 30.76 28.11 26.52 24.39 22.92
Share price1, 3 203.64 202.30 136.86 132.62 159.98
Valuation Ratio
P/BV ratio4 6.62 7.20 5.16 5.44 6.98
Benchmarks
P/BV Ratio, Competitors5
3M Co. 6.21 7.97 9.32 11.75 11.48
Boeing Co. 674.83 569.92
General Electric Co. 2.64 2.89 3.66 3.00 1.96
Honeywell International Inc. 6.91 8.07 6.97 5.96 6.44
Lockheed Martin Corp. 9.62 15.27 39.60 61.11
Raytheon Technologies Corp. 1.95 1.53 3.24 2.71 3.38
P/BV Ratio, Sector
Capital Goods 5.03 5.48 7.79 7.16 6.36
P/BV Ratio, Industry
Industrials 5.93 6.32 6.71 6.26 5.56

Based on: 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).

1 Data adjusted for splits and stock dividends.

2 2021 Calculation
BVPS = Equity attributable to common shareholders ÷ No. shares of common stock outstanding
= 16,484,000,000 ÷ 535,888,051 = 30.76

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

4 2021 Calculation
P/BV ratio = Share price ÷ BVPS
= 203.64 ÷ 30.76 = 6.62

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 2019 to 2020 but then slightly decreased from 2020 to 2021.