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 (27 analysts).
| Parameter | BaseValue |
|---|---|
Initial Cash Flow | |
| Growth Rate (Yr 1-5) | % |
| Growth Rate (Yr 6-10) | % |
| Terminal Growth Rate | % |
| Discount Rate | % |
Base Case $423110766781.62 Implied EV: $462.86B |
What growth rate is the market pricing in at $833?
The market implies -13.9% Owner Earnings growth, below historical trends — potential opportunity.
Standard FCF implies a more demanding -11.1%, reflecting heavy growth investment expected to generate future returns.
Wide moat with strength across all dimensions. ROIC Consistency is the standout factor.
"Market is pricing this stock without strong emotion in either direction"
Appears undervalued with favorable or neutral sentiment — conditions suggest an attractive entry point
