Stock Analysis on Net
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

Microsoft Excel LibreOffice Calc
Caterpillar Inc. 3M Co. Boeing Co. General Electric Co. Honeywell International Inc. Illinois Tool Works Inc. Lockheed Martin Corp. Raytheon Technologies Corp. Capital Goods Industrials
Selected Financial Data
Current share price (P) $198.73
No. shares of common stock outstanding 540,941,600
Growth rate (g) 0.61%
 
Earnings per share (EPS) $5.54
Next year expected EPS $5.58
Operating profit per share $8.42
Sales per share $72.14
Book value per share (BVPS) $28.34
Valuation Ratios (Price Multiples)
Price to earnings (P/E) 35.86 18.79 20.54 29.99 34.94 13.83 72.77 56.42
Price to next year expected earnings 35.64 15.88 21.30 26.97 27.14 5.88 73.04 52.53
Price-earnings-growth (PEG) 59.04 1.03 2.67 1.22 0.10 7.64
Price to operating profit (P/OP) 23.61 14.12 26.78 25.16 25.57 10.93 47.50 32.11
Price to sales (P/S) 2.75 3.14 2.01 1.47 4.39 5.86 1.45 2.20 2.35 2.55
Price to book value (P/BV) 7.01 7.86 3.02 8.17 23.16 15.71 1.72 6.02 6.85

Based on: 10-K (filing date: 2021-02-17).

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, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Price to earnings (P/E) 36.80 12.36 12.42 126.80
Price to operating profit (P/OP) 24.23 9.08 9.20 21.70 116.61
Price to sales (P/S) 2.83 1.48 1.47 2.24 1.62
Price to book value (P/BV) 7.20 5.16 5.44 6.98 4.42

Based on: 10-K (filing date: 2021-02-17), 10-K (filing date: 2020-02-19), 10-K (filing date: 2019-02-14), 10-K (filing date: 2018-02-15), 10-K (filing date: 2017-02-15).

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.’s P/E ratio decreased from 2018 to 2019 but then increased from 2019 to 2020 exceeding 2018 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 decreased from 2018 to 2019 but then increased from 2019 to 2020 exceeding 2018 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 2018 to 2019 and from 2019 to 2020.
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 decreased from 2018 to 2019 but then increased from 2019 to 2020 exceeding 2018 level.

Price to Earnings (P/E)

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

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
No. shares of common stock outstanding1 545,303,847 550,082,610 575,542,738 597,625,772 586,486,024
Selected Financial Data (US$)
Profit (loss) attributable to common stockholders (in millions) 2,998  6,093  6,147  754  (67)
Earnings per share (EPS)2 5.50 11.08 10.68 1.26 -0.11
Share price1, 3 202.30 136.86 132.62 159.98 99.02
Valuation Ratio
P/E ratio4 36.80 12.36 12.42 126.80
Benchmarks
P/E Ratio, Competitors5
3M Co. 19.05 20.52 21.51 27.32 21.04
Boeing Co. 21.87 24.68 20.50
General Electric Co. 19.67 32.22
Honeywell International Inc. 29.63 20.97 16.02 67.20 19.29
Illinois Tool Works Inc. 30.18 23.76 18.46 33.07 21.80
Lockheed Martin Corp. 13.44 19.87 16.88 48.70 14.14
Raytheon Technologies Corp. 24.41 19.74 21.97 17.55
P/E Ratio, Sector
Capital Goods 70.10 35.96 45.64 52.68 23.51
P/E Ratio, Industry
Industrials 50.89 30.51 30.35 26.39 23.61

Based on: 10-K (filing date: 2021-02-17), 10-K (filing date: 2020-02-19), 10-K (filing date: 2019-02-14), 10-K (filing date: 2018-02-15), 10-K (filing date: 2017-02-15).

1 Data adjusted for splits and stock dividends.

2 2020 Calculation
EPS = Profit (loss) attributable to common stockholders ÷ No. shares of common stock outstanding
= 2,998,000,000 ÷ 545,303,847 = 5.50

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

4 2020 Calculation
P/E ratio = Share price ÷ EPS
= 202.30 ÷ 5.50 = 36.80

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.’s P/E ratio decreased from 2018 to 2019 but then increased from 2019 to 2020 exceeding 2018 level.

Price to Operating Profit (P/OP)

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

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
No. shares of common stock outstanding1 545,303,847 550,082,610 575,542,738 597,625,772 586,486,024
Selected Financial Data (US$)
Operating profit (in millions) 4,553  8,290  8,293  4,406  498 
Operating profit per share2 8.35 15.07 14.41 7.37 0.85
Share price1, 3 202.30 136.86 132.62 159.98 99.02
Valuation Ratio
P/OP ratio4 24.23 9.08 9.20 21.70 116.61
Benchmarks
P/OP Ratio, Competitors5
3M Co. 14.32 15.19 15.97 16.97 14.71
Boeing Co. 19.08 19.69 17.20
General Electric Co. 25.64 9.22 8.57 12.27 19.05
Honeywell International Inc. 24.86 18.81 16.16 15.55 13.88
Illinois Tool Works Inc. 22.08 17.61 13.20 15.97 14.48
Lockheed Martin Corp. 10.63 14.49 11.62 16.47 13.51
Raytheon Technologies Corp. 15.07 12.16 11.53 10.86
P/OP Ratio, Sector
Capital Goods 45.76 17.47 13.30 15.88 16.30
P/OP Ratio, Industry
Industrials 28.96 15.86 13.21 14.59 15.43

Based on: 10-K (filing date: 2021-02-17), 10-K (filing date: 2020-02-19), 10-K (filing date: 2019-02-14), 10-K (filing date: 2018-02-15), 10-K (filing date: 2017-02-15).

1 Data adjusted for splits and stock dividends.

2 2020 Calculation
Operating profit per share = Operating profit ÷ No. shares of common stock outstanding
= 4,553,000,000 ÷ 545,303,847 = 8.35

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

4 2020 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 202.30 ÷ 8.35 = 24.23

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.’s P/OP ratio decreased from 2018 to 2019 but then increased from 2019 to 2020 exceeding 2018 level.

Price to Sales (P/S)

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

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
No. shares of common stock outstanding1 545,303,847 550,082,610 575,542,738 597,625,772 586,486,024
Selected Financial Data (US$)
Sales of Machinery, Energy & Transportation (in millions) 39,022  50,755  51,822  42,676  35,773 
Sales per share2 71.56 92.27 90.04 71.41 61.00
Share price1, 3 202.30 136.86 132.62 159.98 99.02
Valuation Ratio
P/S ratio4 2.83 1.48 1.47 2.24 1.62
Benchmarks
P/S Ratio, Competitors5
3M Co. 3.19 2.92 3.51 4.19 3.53
Boeing Co. 1.96 2.34 2.26 2.17 1.06
General Electric Co. 1.41 1.18 0.82 1.11 2.39
Honeywell International Inc. 4.34 3.51 2.59 2.74 2.36
Illinois Tool Works Inc. 5.06 4.25 3.20 3.90 3.26
Lockheed Martin Corp. 1.40 2.07 1.58 1.91 1.59
Raytheon Technologies Corp. 1.95 1.75 1.56 1.67 1.55
P/S Ratio, Sector
Capital Goods 2.27 2.07 1.80 2.06 1.94
P/S Ratio, Industry
Industrials 2.30 2.08 1.89 2.05 1.96

Based on: 10-K (filing date: 2021-02-17), 10-K (filing date: 2020-02-19), 10-K (filing date: 2019-02-14), 10-K (filing date: 2018-02-15), 10-K (filing date: 2017-02-15).

1 Data adjusted for splits and stock dividends.

2 2020 Calculation
Sales per share = Sales of Machinery, Energy & Transportation ÷ No. shares of common stock outstanding
= 39,022,000,000 ÷ 545,303,847 = 71.56

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

4 2020 Calculation
P/S ratio = Share price ÷ Sales per share
= 202.30 ÷ 71.56 = 2.83

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.’s P/S ratio increased from 2018 to 2019 and from 2019 to 2020.

Price to Book Value (P/BV)

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

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
No. shares of common stock outstanding1 545,303,847 550,082,610 575,542,738 597,625,772 586,486,024
Selected Financial Data (US$)
Equity attributable to common stockholders (in millions) 15,331  14,588  14,039  13,697  13,137 
Book value per share (BVPS)2 28.11 26.52 24.39 22.92 22.40
Share price1, 3 202.30 136.86 132.62 159.98 99.02
Valuation Ratio
P/BV ratio4 7.20 5.16 5.44 6.98 4.42
Benchmarks
P/BV Ratio, Competitors5
3M Co. 7.97 9.32 11.75 11.48 10.32
Boeing Co. 674.83 569.92 122.80
General Electric Co. 2.89 3.66 3.00 1.96 3.47
Honeywell International Inc. 8.07 6.97 5.96 6.44 4.79
Illinois Tool Works Inc. 20.01 19.80 14.54 12.17 10.43
Lockheed Martin Corp. 15.27 39.60 61.11 49.61
Raytheon Technologies Corp. 1.53 3.24 2.71 3.38 3.22
P/BV Ratio, Sector
Capital Goods 5.80 8.12 7.37 6.55 5.42
P/BV Ratio, Industry
Industrials 6.18 7.23 6.59 5.88 5.38

Based on: 10-K (filing date: 2021-02-17), 10-K (filing date: 2020-02-19), 10-K (filing date: 2019-02-14), 10-K (filing date: 2018-02-15), 10-K (filing date: 2017-02-15).

1 Data adjusted for splits and stock dividends.

2 2020 Calculation
BVPS = Equity attributable to common stockholders ÷ No. shares of common stock outstanding
= 15,331,000,000 ÷ 545,303,847 = 28.11

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

4 2020 Calculation
P/BV ratio = Share price ÷ BVPS
= 202.30 ÷ 28.11 = 7.20

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’s required rate of return and its actual rate of return. Caterpillar Inc.’s P/BV ratio decreased from 2018 to 2019 but then increased from 2019 to 2020 exceeding 2018 level.