Caterpillar Inc (CAT) Stock Analysis — PE Ratio, PS Ratio, Intrinsic Value & 2030 Price Target
Caterpillar Inc stock (CAT) is currently trading at $719.04. Caterpillar Inc PE ratio is 38.16. Caterpillar Inc PS ratio (Price-to-Sales) is 4.96. Analyst consensus price target for CAT is $736.21. WallStSmart rates CAT as Hold.
Caterpillar Inc (CAT) stock price prediction for 2030: Base case $433.09. Bull case $541.37. Bear case $324.82. See full CAT 2030 price forecast and methodology on WallStSmart.
- CAT PE ratio analysis and historical PE chart
- CAT PS ratio (Price-to-Sales) history and trend
- CAT intrinsic value — DCF, Graham Number, EPV models
- CAT stock price prediction 2025 2026 2027 2028 2029 2030
- CAT fair value vs current price
- CAT insider transactions and insider buying
- Is CAT undervalued or overvalued?
- Caterpillar Inc financial analysis — revenue, earnings, cash flow
- CAT Piotroski F-Score and Altman Z-Score
- CAT analyst price target and Smart Rating
Caterpillar Inc
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CAT Intrinsic Value Analysis for Value Investors
Benjamin Graham Formula · Caterpillar Inc (CAT)
CAT trades 463% above its Graham fair value of $127.70, indicating the stock may be overvalued at current levels.
Based on Benjamin Graham Formula. Growth rate capped at 25%. For informational purposes only. Not financial advice.
Smart Analysis
Caterpillar Inc (CAT) · 10 metrics scored
Smart Score
Category Performance
WallStSmart pulls financial metrics like revenue growth, profit margins, and valuation ratios and scores each one from 0 to 10 based on how strong or weak it is. Those 10 scores are grouped into 4 categories: Growth, Profitability, Valuation, and Quality — which form the 4 axes of the spider chart you see. The categories are then combined into a final score out of 100, but not equally. Growth and Profitability together count for 60% of the total, because a fast-growing profitable business matters more than just a cheap one. That final number maps to a rating (Strong Buy, Buy, Hold, Avoid) and a letter grade, giving you one clear Stock Rating.
Investment Thesis
Strong fundamentals in market cap, return on equity, institutional own.. Concerns around price/book and eps growth. Fundamentals are solid but monitor weak areas for improvement.
Caterpillar Inc (CAT) Key Strengths (3)
Mega-cap company, among the largest in the world
Every $100 of shareholder equity generates $44 in profit
72.65% of shares held by major funds and institutions
Caterpillar Inc (CAT) Areas to Watch (7)
Earnings declining -11.40%, profits shrinking
Very expensive at 14.9x book value
Premium valuation at 5.0x annual revenue
Growth is fairly priced, not cheap, not expensive
Decent operational efficiency, solid but not exceptional
Solid revenue growth at 18.00% per year
Decent profitability, keeps $13 per $100 revenue
Supporting Valuation Data
Caterpillar Inc (CAT) Detailed Analysis Report
Overall Assessment
This company scores 57/100 in our Smart Analysis, earning a C grade. Out of 10 metrics analyzed, 3 register as strengths (avg 10.0/10) while 7 fall into concern territory (avg 4.3/10). The category breakdown reveals uneven performance, with some areas requiring attention.
The Bull Case
The strongest argument centers on Market Cap, Return on Equity, Institutional Own.. Profitability is solid with Return on Equity at 43.50%.
The Bear Case
The primary concerns are EPS Growth, Price/Book, Price/Sales. Some valuation metrics including PEG Ratio (1.86), Price/Sales (4.96), Price/Book (14.86) suggest expensive pricing. Growth concerns include Revenue Growth at 18.00%, EPS Growth at -11.40%, which may limit upside. Profitability pressure is visible in Operating Margin at 16.00%, Profit Margin at 13.10%.
Key Dynamics to Monitor
Three factors to monitor going forward. First, whether EPS Growth improves, as this is the primary drag on the overall score. Second, margin trajectory, with Return on Equity at 43.50% currently healthy but needing to be sustained. Third, growth sustainability, with Revenue Growth at 18.00% needing to reaccelerate.
Risk Considerations
Based on the metric profile, this is a moderate-to-high risk investment. There are more areas of concern than strength, warranting a more conservative position size. Investors should size positions according to their risk tolerance and maintain diversification.
Bottom Line
Mixed fundamentals with both positives (Market Cap, Return on Equity) and negatives (EPS Growth, Price/Book). A cautious approach is warranted. Monitor for improvement in weak areas before increasing conviction.
Disclaimer: Smart Analysis is a scoring system developed by WallStSmart Team. Scores update daily using multi-model valuation framework. Always conduct your own research and consult with financial advisors before making investment decisions.
CAT Price-to-Sales(PS) Ratio Chart
Historical valuation based on market cap ÷ trailing 12-month revenue
CAT's Price-to-Sales ratio of 4.96x trades 285% above its historical average of 1.29x (99th percentile), historically expensive. The current valuation is 2% below its historical high of 5.07x set in Mar 2026, and 1611% above its historical low of 0.29x in Feb 2009.
WallStSmart Analysis Synopsis
Data-driven financial summary for Caterpillar Inc (CAT) · INDUSTRIALS › FARM & HEAVY CONSTRUCTION MACHINERY
The Big Picture
Caterpillar Inc is a strong growth company balancing expansion with improving profitability. Revenue reached 67.6B with 18% growth year-over-year. Profit margins of 13.1% are healthy, with room for further expansion as the business scales.
Key Findings
ROE of 43.5% means the company generates strong returns on shareholder equity. Above 20% is considered top-tier.
Generating 2.2B in free cash flow and 3.6B in operating cash flow. Earnings are translating into actual cash generation.
Debt-to-equity ratio of 2.03 is elevated. High leverage amplifies both gains and losses and increases financial risk.
What to Watch Next
Margin expansion: can Caterpillar Inc push profit margins above 15% as the business scales?
Volatility is elevated with a beta of 1.53, so expect amplified moves relative to the broader market.
Debt management: total debt of 43.3B is significantly higher than cash (10.0B). Monitor refinancing risk.
Sector dynamics: monitor FARM & HEAVY CONSTRUCTION MACHINERY industry trends, competitive moves, and regulatory changes that could impact Caterpillar Inc.
Bottom Line
Caterpillar Inc offers an attractive blend of growth (18% revenue expansion) and improving fundamentals. The company is transitioning from pure growth to profitable growth, a critical inflection point. Watch for sustained margin expansion as the key signal.
This synopsis is generated from publicly available financial data. It is not financial advice. Always conduct your own research and consult a qualified financial advisor before making investment decisions.
Insider Transactions
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About Caterpillar Inc(CAT)
NYSE
INDUSTRIALS
FARM & HEAVY CONSTRUCTION MACH...
USA
Caterpillar Inc. (often shortened to CAT) is an American Fortune 100 corporation that designs, develops, engineers, manufactures, markets, and sells machinery, engines, financial products, and insurance to customers via a worldwide dealer network.