Caterpillar Inc. provides construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives in the United States and internationally. The Construction Industries segment offers asphalt pavers, cold planers, compactors, forestry machines, material handlers, motor graders, pipelayers, road reclaimers, telehandlers, track-type tractors, and track and wheel excavators; backhoe, compact track, skid steer, track-type, and wheel loaders; and related parts and work tools.
Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS. Shaded region = analyst consensus for the current and next fiscal year (26 analysts).
| Parameter | BaseValue |
|---|---|
Initial Cash Flow | |
| Growth Rate (Yr 1-5) | % |
| Growth Rate (Yr 6-10) | % |
| Terminal Growth Rate | % |
| Discount Rate | % |
Base Case $875.65 Implied EV: $443.07B |
What growth rate is the market pricing in at $986?
The market implies +21.7% Owner Earnings growth, above historical trends.
Standard FCF implies a demanding +24.1%, reflecting heavy growth investment.
Wide moat with strength across all dimensions. ROIC Consistency is the standout factor.
"Market is optimistic — be cautious and ensure you have a margin of safety"
Near fair value but market is greedy — optimism is already priced in
