Common Stock Valuation Ratios (Price Multiples)
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).
Historical Valuation Ratios (Summary)
Caterpillar Inc., historical price multiples (quarterly data)
Based on: 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
Analysis of the valuation ratios indicates a transition from a period of relative stability to a phase of aggressive multiple expansion. Between March 2022 and March 2024, the valuation metrics fluctuated within established ranges, suggesting a market valuation closely aligned with historical norms. However, beginning in mid-2025, there is a synchronized and sharp increase across all analyzed ratios, peaking in the first quarter of 2026 before experiencing a slight correction.
- Earnings and Operating Profit Multiples
- The Price to Earnings (P/E) ratio remained largely stable between 12.95 and 19.15 through the first quarter of 2024. A significant upward trend emerged in June 2025 (21.23), accelerating to a peak of 45.28 by March 2026. Similarly, the Price to Operating Profit (P/OP) ratio moved from a low of 10.25 in September 2023 to a peak of 36.63 in March 2026. The tight correlation between P/E and P/OP suggests that the valuation increase is driven by broader market sentiment or expectations of future growth rather than changes in operational efficiency.
- Revenue and Asset Valuation
- The Price to Sales (P/S) ratio showed moderate volatility until March 2024, after which it began a steep ascent, rising from 2.52 in March 2025 to a maximum of 6.37 in March 2026. The Price to Book Value (P/BV) ratio exhibited the most dramatic expansion, climbing from 6.96 in March 2022 to 22.88 in March 2026. This represents a substantial increase in the premium attributed to the company's assets, indicating that the market price grew at a significantly faster rate than the book value of equity.
- Overall Valuation Trend
- A consistent pattern of peak valuation is observed across all metrics on March 31, 2026, followed by a simultaneous decline in June 2026. This suggests a period of valuation overextension followed by a moderate market correction. The expansion in multiples starting in 2025 indicates a fundamental shift in the market's pricing of the company's earnings, sales, and assets.
AI Ask an analyst for more
Price to Earnings (P/E)
Caterpillar Inc., historical P/E calculation (quarterly data)
| Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 459,674,889 | 460,637,026 | 465,287,332 | 467,979,596 | 468,478,923 | 471,041,788 | 477,932,024 | 482,802,488 | 484,898,116 | 489,272,920 | 499,377,269 | 509,084,743 | 510,143,097 | 515,920,061 | 516,345,490 | 520,409,355 | 527,909,143 | 533,353,205 | ||||||
| Selected Financial Data (US$) | ||||||||||||||||||||||||
| Profit attributable to common stockholders (in millions) | 3,593) | 2,549) | 2,402) | 2,300) | 2,179) | 2,003) | 2,791) | 2,464) | 2,681) | 2,856) | 2,676) | 2,794) | 2,922) | 1,943) | 1,454) | 2,041) | 1,673) | 1,537) | ||||||
| Earnings per share (EPS)2 | 23.59 | 20.47 | 19.09 | 19.81 | 20.14 | 21.10 | 22.58 | 22.11 | 22.70 | 22.99 | 20.70 | 17.90 | 16.39 | 13.78 | 12.99 | 14.16 | 12.80 | 12.18 | ||||||
| Share price1, 3 | 871.08 | 926.93 | 774.20 | 570.59 | 427.72 | 320.29 | 353.32 | 416.88 | 325.80 | 331.07 | 321.91 | 231.83 | 287.57 | 215.64 | 248.70 | 214.54 | 182.87 | 222.59 | ||||||
| Valuation Ratio | ||||||||||||||||||||||||
| P/E ratio4 | 36.92 | 45.28 | 40.55 | 28.80 | 21.23 | 15.18 | 15.65 | 18.85 | 14.35 | 14.40 | 15.55 | 12.95 | 17.55 | 15.65 | 19.15 | 15.15 | 14.29 | 18.28 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| P/E Ratio, Competitors5 | ||||||||||||||||||||||||
| Boeing Co. | 83.79 | 94.81 | 97.12 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Eaton Corp. plc | 42.13 | 39.99 | 35.55 | 37.36 | 35.35 | 29.79 | 30.00 | 34.78 | 32.49 | 37.41 | 35.88 | 27.72 | 32.23 | 26.89 | 27.93 | 26.32 | 25.21 | 26.37 | ||||||
| GE Aerospace | 39.98 | 34.66 | 36.01 | 40.12 | 35.93 | 28.84 | 33.42 | 30.60 | 40.07 | 52.90 | 16.18 | 12.72 | 13.82 | 12.78 | — | — | — | — | ||||||
| Honeywell International Inc. | 9.50 | 33.12 | 32.62 | 22.86 | 24.93 | 23.88 | 23.10 | 23.93 | 22.74 | 21.95 | 22.73 | 21.44 | 23.92 | 25.30 | 26.97 | 24.58 | 25.26 | 25.10 | ||||||
| Lockheed Martin Corp. | 20.87 | 25.49 | 28.55 | 26.97 | 22.81 | 19.67 | 20.18 | 20.49 | 17.74 | 16.29 | 15.35 | 15.71 | 16.11 | 22.32 | 20.48 | 19.28 | 22.00 | 19.45 | ||||||
| RTX Corp. | 36.43 | 34.74 | 39.61 | 35.20 | 32.49 | 33.04 | 36.25 | 35.41 | 66.73 | 38.75 | 38.31 | 35.32 | 22.79 | 26.67 | 27.59 | 29.12 | 29.83 | 35.16 | ||||||
Based on: 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Data adjusted for splits and stock dividends.
2 Q2 2026 Calculation
EPS
= (Profit attributable to common stockholdersQ2 2026
+ Profit attributable to common stockholdersQ1 2026
+ Profit attributable to common stockholdersQ4 2025
+ Profit attributable to common stockholdersQ3 2025)
÷ No. shares of common stock outstanding
= (3,593,000,000 + 2,549,000,000 + 2,402,000,000 + 2,300,000,000)
÷ 459,674,889 = 23.59
3 Closing price as at the filing date of Caterpillar Inc. Quarterly or Annual Report.
4 Q2 2026 Calculation
P/E ratio = Share price ÷ EPS
= 871.08 ÷ 23.59 = 36.92
5 Click competitor name to see calculations.
The financial trajectory from March 2022 through June 2026 is characterized by a distinct divergence between earnings growth and share price appreciation, resulting in a significant expansion of the valuation multiple in the latter half of the period.
- Share Price Dynamics
- An overall upward trajectory is observed, beginning at 222.59 US$ in March 2022 and reaching a peak of 926.93 US$ by March 2026. The price movement remained relatively volatile between 2022 and 2024, but entered a phase of aggressive acceleration starting in March 2025, where the price more than doubled within one calendar year.
- Earnings Per Share (EPS) Performance
- Earnings exhibited a steady growth phase from March 2022 (12.18 US$) through March 2024, peaking at 22.99 US$. Following this peak, EPS entered a period of stagnation and slight contraction, fluctuating between 19.09 US$ and 23.59 US$ through June 2026. This indicates that the primary driver of value in the final two years was not operational earnings growth.
- Price-to-Earnings (P/E) Ratio Analysis
- The P/E ratio remained within a stable range of 12.95 to 19.15 from March 2022 to December 2024, suggesting a valuation closely tied to fundamental earnings performance. However, a sharp valuation expansion occurred starting in March 2025, with the ratio climbing from 21.23 to a peak of 45.28 by March 2026. This represents a substantial shift in market sentiment or expectations, as the multiple more than doubled while EPS remained flat or declined.
- Valuation Divergence
- A critical inflection point is identified between December 2024 and March 2026. During this window, the share price increased by approximately 161%, while EPS actually decreased from 22.58 US$ to 20.47 US$. This decoupling resulted in the P/E ratio expanding from 15.65 to 45.28, indicating that the stock transitioned from a value-based valuation to a growth-based or speculative valuation.
The period concludes with a slight correction in June 2026, where the P/E ratio moderated to 36.92, despite a recovery in EPS to 23.59 US$, suggesting a stabilization of the valuation multiple following the extreme expansion of early 2026.
AI Ask an analyst for more
Price to Operating Profit (P/OP)
Caterpillar Inc., historical P/OP calculation (quarterly data)
| Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 459,674,889 | 460,637,026 | 465,287,332 | 467,979,596 | 468,478,923 | 471,041,788 | 477,932,024 | 482,802,488 | 484,898,116 | 489,272,920 | 499,377,269 | 509,084,743 | 510,143,097 | 515,920,061 | 516,345,490 | 520,409,355 | 527,909,143 | 533,353,205 | ||||||
| Selected Financial Data (US$) | ||||||||||||||||||||||||
| Operating profit (in millions) | 4,295) | 3,085) | 2,660) | 3,052) | 2,860) | 2,579) | 2,924) | 3,147) | 3,482) | 3,519) | 3,134) | 3,449) | 3,652) | 2,731) | 1,680) | 2,425) | 1,944) | 1,855) | ||||||
| Operating profit per share2 | 28.48 | 25.31 | 23.97 | 24.39 | 24.57 | 25.76 | 27.35 | 27.51 | 28.01 | 28.11 | 25.96 | 22.61 | 20.56 | 17.02 | 15.31 | 15.06 | 13.40 | 12.97 | ||||||
| Share price1, 3 | 871.08 | 926.93 | 774.20 | 570.59 | 427.72 | 320.29 | 353.32 | 416.88 | 325.80 | 331.07 | 321.91 | 231.83 | 287.57 | 215.64 | 248.70 | 214.54 | 182.87 | 222.59 | ||||||
| Valuation Ratio | ||||||||||||||||||||||||
| P/OP ratio4 | 30.58 | 36.63 | 32.30 | 23.39 | 17.41 | 12.44 | 12.92 | 15.15 | 11.63 | 11.78 | 12.40 | 10.25 | 13.99 | 12.67 | 16.25 | 14.25 | 13.65 | 17.16 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| P/OP Ratio, Competitors5 | ||||||||||||||||||||||||
| Boeing Co. | 38.07 | 42.72 | 42.88 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Eaton Corp. plc | 30.34 | 30.80 | 27.89 | 29.06 | 28.37 | 24.29 | 24.57 | 29.21 | 27.36 | 31.13 | 29.72 | 22.55 | 25.61 | 21.74 | 22.78 | 21.52 | 18.06 | 18.52 | ||||||
| GE Aerospace | 31.04 | 26.58 | 28.45 | 30.56 | 28.71 | 21.98 | 26.78 | 25.88 | 26.34 | 28.91 | 27.11 | 22.82 | 26.69 | 20.39 | 19.88 | 15.70 | 13.51 | 17.08 | ||||||
| Honeywell International Inc. | 14.95 | 25.50 | 27.68 | 19.84 | 19.89 | 18.61 | 17.71 | 18.68 | 17.90 | 17.33 | 18.15 | 15.87 | 18.29 | 19.31 | 20.84 | 21.54 | 21.51 | 22.09 | ||||||
| Lockheed Martin Corp. | 14.34 | 16.46 | 18.53 | 18.58 | 16.10 | 14.72 | 15.35 | 15.88 | 14.04 | 12.99 | 12.49 | 12.87 | 13.18 | 15.02 | 14.06 | 13.30 | 11.97 | 13.61 | ||||||
| RTX Corp. | 26.89 | 25.67 | 28.67 | 26.32 | 24.00 | 22.67 | 26.47 | 26.63 | 52.96 | 35.67 | 34.37 | 35.06 | 20.81 | 24.68 | 26.48 | 24.82 | 26.15 | 29.36 | ||||||
Based on: 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Data adjusted for splits and stock dividends.
2 Q2 2026 Calculation
Operating profit per share
= (Operating profitQ2 2026
+ Operating profitQ1 2026
+ Operating profitQ4 2025
+ Operating profitQ3 2025)
÷ No. shares of common stock outstanding
= (4,295,000,000 + 3,085,000,000 + 2,660,000,000 + 3,052,000,000)
÷ 459,674,889 = 28.48
3 Closing price as at the filing date of Caterpillar Inc. Quarterly or Annual Report.
4 Q2 2026 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 871.08 ÷ 28.48 = 30.58
5 Click competitor name to see calculations.
The valuation of the common stock exhibits three distinct phases: a period of volatility and consolidation from early 2022 through 2023, a phase of steady operating profit growth with compressed multiples throughout 2024, and a period of aggressive valuation expansion from 2025 through mid-2026.
- Share Price Trajectory
- Equity pricing experienced moderate fluctuations between 182.87 and 321.91 from March 2022 to December 2023. A sustained upward trend emerged in 2024, which accelerated into an exponential increase throughout 2025. The price reached a peak of 926.93 in March 2026, followed by a modest correction to 871.08 by June 2026.
- Operating Profitability Trends
- Operating profit per share showed consistent growth during the initial stage of the analysis, rising from 12.97 in March 2022 to a peak of 28.11 in March 2024. Subsequently, profitability entered a period of stabilization and slight contraction, fluctuating between 23.97 and 28.01 from June 2024 through December 2025, before recovering to 28.48 in June 2026.
- Price to Operating Profit (P/OP) Ratio Analysis
- The P/OP ratio remained relatively stable and constrained between 10.25 and 17.16 from March 2022 to December 2024. A significant shift in valuation occurred starting in March 2025, as the ratio climbed from 12.44 to a peak of 36.63 in March 2026. This expansion indicates a decoupling where the share price increased at a rate substantially higher than the growth in operating profits, suggesting increased market premiums or higher future earnings expectations.
Overall, the data reveals that while operating profitability grew substantially in the early period, the later surge in the P/OP ratio was driven primarily by rapid share price appreciation rather than proportional increases in operating performance.
AI Ask an analyst for more
Price to Sales (P/S)
Caterpillar Inc., historical P/S calculation (quarterly data)
| Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 459,674,889 | 460,637,026 | 465,287,332 | 467,979,596 | 468,478,923 | 471,041,788 | 477,932,024 | 482,802,488 | 484,898,116 | 489,272,920 | 499,377,269 | 509,084,743 | 510,143,097 | 515,920,061 | 516,345,490 | 520,409,355 | 527,909,143 | 533,353,205 | ||||||
| Selected Financial Data (US$) | ||||||||||||||||||||||||
| Sales of Machinery, Power & Energy (in millions) | 19,581) | 16,473) | 18,202) | 16,726) | 15,674) | 13,378) | 15,332) | 15,231) | 15,840) | 14,960) | 16,237) | 15,988) | 16,545) | 15,099) | 15,871) | 14,278) | 13,539) | 12,886) | ||||||
| Sales per share2 | 154.42 | 145.61 | 137.51 | 130.58 | 127.25 | 126.91 | 128.39 | 128.97 | 129.98 | 130.25 | 127.90 | 124.74 | 121.13 | 113.95 | 109.57 | 103.38 | 97.04 | 93.53 | ||||||
| Share price1, 3 | 871.08 | 926.93 | 774.20 | 570.59 | 427.72 | 320.29 | 353.32 | 416.88 | 325.80 | 331.07 | 321.91 | 231.83 | 287.57 | 215.64 | 248.70 | 214.54 | 182.87 | 222.59 | ||||||
| Valuation Ratio | ||||||||||||||||||||||||
| P/S ratio4 | 5.64 | 6.37 | 5.63 | 4.37 | 3.36 | 2.52 | 2.75 | 3.23 | 2.51 | 2.54 | 2.52 | 1.86 | 2.37 | 1.89 | 2.27 | 2.08 | 1.88 | 2.38 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| P/S Ratio, Competitors5 | ||||||||||||||||||||||||
| Boeing Co. | 1.86 | 1.98 | 2.05 | 2.01 | 2.27 | 1.87 | 1.98 | 1.32 | 1.60 | 1.32 | 1.66 | 1.42 | 1.91 | 1.73 | 1.90 | 1.30 | 1.53 | 1.50 | ||||||
| Eaton Corp. plc | 5.37 | 5.59 | 5.29 | 5.51 | 5.34 | 4.63 | 4.58 | 5.33 | 4.91 | 5.38 | 4.98 | 3.67 | 3.96 | 3.23 | 3.31 | 2.99 | 2.95 | 2.96 | ||||||
| GE Aerospace | 7.56 | 6.66 | 7.41 | 8.02 | 7.34 | 5.60 | 6.24 | 4.37 | 3.63 | 3.02 | 2.30 | 1.84 | 1.85 | 1.51 | 1.20 | 1.11 | 1.10 | 1.25 | ||||||
| Honeywell International Inc. | 2.05 | 3.61 | 4.12 | 3.62 | 3.74 | 3.55 | 3.42 | 3.59 | 3.52 | 3.41 | 3.51 | 3.19 | 3.61 | 3.68 | 3.78 | 3.78 | 3.72 | 3.84 | ||||||
| Lockheed Martin Corp. | 1.70 | 1.63 | 1.91 | 1.54 | 1.33 | 1.51 | 1.52 | 1.92 | 1.68 | 1.59 | 1.57 | 1.62 | 1.69 | 1.92 | 1.78 | 1.75 | 1.61 | 1.84 | ||||||
| RTX Corp. | 3.01 | 2.79 | 3.01 | 2.70 | 2.39 | 1.86 | 2.14 | 2.11 | 2.08 | 1.90 | 1.78 | 1.68 | 1.80 | 2.15 | 2.14 | 1.97 | 2.04 | 2.27 | ||||||
Based on: 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Data adjusted for splits and stock dividends.
2 Q2 2026 Calculation
Sales per share
= (Sales of Machinery, Power & EnergyQ2 2026
+ Sales of Machinery, Power & EnergyQ1 2026
+ Sales of Machinery, Power & EnergyQ4 2025
+ Sales of Machinery, Power & EnergyQ3 2025)
÷ No. shares of common stock outstanding
= (19,581,000,000 + 16,473,000,000 + 18,202,000,000 + 16,726,000,000)
÷ 459,674,889 = 154.42
3 Closing price as at the filing date of Caterpillar Inc. Quarterly or Annual Report.
4 Q2 2026 Calculation
P/S ratio = Share price ÷ Sales per share
= 871.08 ÷ 154.42 = 5.64
5 Click competitor name to see calculations.
The valuation profile of the common stock exhibits a significant expansion in the price-to-sales (P/S) multiple over the analyzed period, transitioning from a relatively stable valuation range to a period of aggressive growth.
- Share Price Trajectory
- The share price demonstrated moderate volatility between March 2022 and December 2023, oscillating between 182.87 USD and 321.91 USD. A more pronounced upward trend began in 2024, with a significant acceleration occurring in 2025. The price ascended from 320.29 USD in March 2025 to a peak of 926.93 USD by March 2026, before experiencing a slight correction to 871.08 USD in June 2026.
- Sales per Share Performance
- Revenue efficiency, as measured by sales per share, showed consistent growth from March 2022 (93.53 USD) through the first quarter of 2024 (130.25 USD). Following a period of stagnation during 2024 where values remained between 128.39 USD and 130.25 USD, a secondary growth phase emerged starting in mid-2025, eventually reaching 154.42 USD by June 2026.
- Price-to-Sales (P/S) Ratio Analysis
- The P/S ratio remained within a tight corridor of 1.86 to 2.54 between March 2022 and March 2025, indicating a consistent relationship between market valuation and revenue generation. However, a sharp divergence occurred starting in June 2025, where the ratio climbed rapidly from 3.36 to a peak of 6.37 in March 2026. This suggests that the increase in share price significantly outpaced the growth in sales per share during this window, resulting in substantial multiple expansion.
The overall trend indicates a shift in market sentiment. While the early period was characterized by valuations closely aligned with revenue growth, the latter period reflects a steep increase in the premium investors were willing to pay per dollar of sales, peaking in the first quarter of 2026.
AI Ask an analyst for more
Price to Book Value (P/BV)
Caterpillar Inc., historical P/BV calculation (quarterly data)
| Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 459,674,889 | 460,637,026 | 465,287,332 | 467,979,596 | 468,478,923 | 471,041,788 | 477,932,024 | 482,802,488 | 484,898,116 | 489,272,920 | 499,377,269 | 509,084,743 | 510,143,097 | 515,920,061 | 516,345,490 | 520,409,355 | 527,909,143 | 533,353,205 | ||||||
| Selected Financial Data (US$) | ||||||||||||||||||||||||
| Shareholders’ equity attributable to common shareholders (in millions) | 19,395) | 18,661) | 21,318) | 20,658) | 18,661) | 18,067) | 19,491) | 19,397) | 17,130) | 17,639) | 19,494) | 20,489) | 18,235) | 18,149) | 15,869) | 15,591) | 15,727) | 17,065) | ||||||
| Book value per share (BVPS)2 | 42.19 | 40.51 | 45.82 | 44.14 | 39.83 | 38.36 | 40.78 | 40.18 | 35.33 | 36.05 | 39.04 | 40.25 | 35.74 | 35.18 | 30.73 | 29.96 | 29.79 | 32.00 | ||||||
| Share price1, 3 | 871.08 | 926.93 | 774.20 | 570.59 | 427.72 | 320.29 | 353.32 | 416.88 | 325.80 | 331.07 | 321.91 | 231.83 | 287.57 | 215.64 | 248.70 | 214.54 | 182.87 | 222.59 | ||||||
| Valuation Ratio | ||||||||||||||||||||||||
| P/BV ratio4 | 20.65 | 22.88 | 16.90 | 12.93 | 10.74 | 8.35 | 8.66 | 10.38 | 9.22 | 9.18 | 8.25 | 5.76 | 8.05 | 6.13 | 8.09 | 7.16 | 6.14 | 6.96 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| P/BV Ratio, Competitors5 | ||||||||||||||||||||||||
| Boeing Co. | 28.71 | 30.45 | 33.65 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Eaton Corp. plc | 7.96 | 8.09 | 7.48 | 7.79 | 7.46 | 6.34 | 6.16 | 6.85 | 6.17 | 6.60 | 6.07 | 4.52 | 4.87 | 3.96 | 4.04 | 3.75 | 3.56 | 3.52 | ||||||
| GE Aerospace | 20.34 | 16.57 | 16.78 | 17.19 | 14.57 | 10.48 | 11.33 | 10.13 | 10.03 | 5.96 | 5.43 | 4.31 | 4.09 | 3.39 | 2.43 | 2.53 | 2.26 | 2.27 | ||||||
| Honeywell International Inc. | 4.21 | 9.99 | 11.09 | 8.35 | 8.86 | 7.78 | 7.08 | 7.81 | 7.76 | 7.64 | 8.11 | 6.74 | 7.54 | 7.81 | 8.02 | 7.46 | 7.31 | 7.17 | ||||||
| Lockheed Martin Corp. | 14.97 | 16.31 | 21.31 | 18.33 | 17.98 | 16.20 | 17.00 | 19.00 | 19.35 | 16.60 | 15.54 | 11.80 | 12.31 | 13.16 | 12.67 | 9.46 | 9.05 | 12.08 | ||||||
| RTX Corp. | 4.25 | 3.80 | 4.09 | 3.60 | 3.20 | 2.47 | 2.88 | 2.73 | 2.56 | 2.23 | 2.05 | 1.62 | 1.75 | 2.03 | 1.97 | 1.85 | 1.89 | 2.04 | ||||||
Based on: 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Data adjusted for splits and stock dividends.
2 Q2 2026 Calculation
BVPS = Shareholders’ equity attributable to common shareholders ÷ No. shares of common stock outstanding
= 19,395,000,000 ÷ 459,674,889 = 42.19
3 Closing price as at the filing date of Caterpillar Inc. Quarterly or Annual Report.
4 Q2 2026 Calculation
P/BV ratio = Share price ÷ BVPS
= 871.08 ÷ 42.19 = 20.65
5 Click competitor name to see calculations.
The financial data indicates a significant expansion in the valuation of the equity relative to its book value over the analyzed period. While the book value per share remained relatively stable with modest growth, the share price experienced an aggressive upward trajectory, leading to a substantial increase in the Price to Book Value (P/BV) ratio.
- Share Price Trajectory
- A general upward trend is observed, beginning at 222.59 US$ in March 2022 and reaching a peak of 926.93 US$ by March 2026. The growth was characterized by moderate fluctuations between 2022 and 2024, followed by a period of rapid acceleration starting in late 2024 and continuing through the first quarter of 2026.
- Book Value per Share (BVPS) Stability
- The book value per share exhibited low volatility and gradual growth. From a starting point of 32.00 US$ in March 2022, the BVPS reached a maximum of 45.82 US$ in December 2025 before settling at 42.19 US$ in June 2026. The lack of a proportional increase in BVPS relative to the share price suggests that the valuation increase was driven by market sentiment or earnings expectations rather than an accumulation of net assets.
- P/BV Ratio Analysis
- The P/BV ratio transitioned through three distinct phases. From March 2022 to December 2023, the ratio fluctuated within a range of 5.76 to 8.25. A secondary phase began in March 2024, where the ratio consistently remained above 8.0, breaking the 10.0 threshold in September 2024. The final phase, occurring between June 2025 and June 2026, saw a sharp escalation, peaking at 22.88 in March 2026 before a slight correction to 20.65 in June 2026.
- Valuation Divergence
- A widening divergence is evident between the intrinsic accounting value and the market price. The shift from a P/BV of 6.96 in early 2022 to 20.65 in mid-2026 represents a nearly threefold increase in the premium investors were willing to pay over the book value. This suggests a market re-rating of the company's assets or a significant increase in the perceived value of intangible assets and future growth prospects.
AI Ask an analyst for more