Industrials · Construction Machinery & Heavy Transportation Equipment · US stock · price as of 22 Oct 2026
Key indicators
Price
$704.05
52-week range
$510.21 – $1,073.46
Market cap
$325.6B
P/E (trailing)
30.4×
EV / EBITDA
20.6×
Free-cash-flow yield
3.3%
Dividend yield
0.7%
Revenue (last 12 months)
$74.7B
Revenue growth (3y a year)
4.4%
Operating margin
17.5%
Return on invested capital
79.0%
Net debt / EBITDA
–
Fair value
Fair value (average of valid models)$580.99 middle half of models $492 – $686
Versus priceFair−18% to fair value
P/E multiple
$658.56
P/B multiple
$483.00
P/S multiple
$501.77
EV/EBITDA multiple
$608.80
EV/EBIT multiple
$553.83
EV/revenue multiple
$572.27
10-year DCF, EBITDA exit
$714.04
5-year DCF, EBITDA exit
$726.77
10-year DCF, revenue exit
$716.27
5-year DCF, revenue exit
$728.42
10-year DCF, growth exit
$481.17
5-year DCF, growth exit
$452.98
Dividend discount, stable
$400.12
Dividend discount, multi-stage
$614.24
Earnings power value
$502.62
Model uncertainty
Medium
X-Ray Score
43/ 100 · High confidence · ahead of 23% of sector peers
Valuation22
Growth40
Profitability59
Financial health49
Dividends51
Five-year price chart navy: price · brown: 200-day average · blue band: fair value range
Executive summary
Construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives are what Caterpillar builds. Customers include contractors, miners, quarry operators, energy companies, rail operators and utilities, and most equipment reaches them through an independent dealer network. The business is organised into construction industries, resource industries, energy and transportation, and a financial products division that provides financing for its machines.
Caterpillar earns revenue from machine and engine sales, from parts and services, and from interest and fees on financing. Revenue over the last twelve months was $74.7 billion, growing at 4.4% a year across the last three years. The operating margin is 17.5%, and the business earns a profit of 79% on the capital invested in it. A dividend is paid, with a yield of 0.7%.
StocksXray gives Caterpillar Inc an X-Ray Score of 43 out of 100 (high confidence), ahead of 23% of the S&P 500 stocks in its sector. Its strongest lens is profitability (59) and its weakest is valuation (22).
Our fair value (the average of the valid models) is $580.99 (range $492.39 to $686.30). At $704.05 the stock trades 21% above that value, so the label is "Fair" with medium model uncertainty. Fair value is a range, not a price target.
XStocksXray
Caterpillar Inc (CAT)
Valuation history multiples at each fiscal year-end price; the last column uses today's price and the last twelve months
FY2021
FY2022
FY2023
FY2024
FY2025
Now
Price
$190.72
$226.19
$284.89
$355.14
$569.39
$704.05
Market cap
$104.6B
$120.0B
$146.3B
$173.8B
$268.9B
$325.6B
P/E
16.1×
17.9×
14.2×
16.1×
30.3×
30.4×
EV / revenue
2.5×
2.4×
2.5×
3.1×
4.4×
4.3×
EV / EBITDA
13.7×
14.3×
11.1×
13.0×
22.0×
20.6×
Price / free cash flow
17.1×
18.5×
13.0×
17.3×
30.2×
30.4×
Free-cash-flow yield
5.8%
5.4%
7.7%
5.8%
3.3%
3.3%
Price / book
6.3×
7.5×
7.5×
8.9×
12.6×
16.8×
Dividend yield
2.29%
2.08%
1.79%
1.56%
1.04%
0.66%
Fundamentals checklist ● 3 Good · ● 7 Average · ● 5 Bad · each check graded against the sector
Cash quality
Earnings backed by cash−2.7%Average
Free-cash-flow yield3.3%Bad
Risk models
Altman Z score4.3×Average
Piotroski F-Score5 of 9Bad
Growth
EPS growth (3y)14.2%Good
Free-cash-flow growth (3y)11.3%Bad
Revenue growth (3y)4.4%Average
Growth consistency40%Bad
Balance sheet
Current ratio1.4×Average
Interest coverno interest costGood
Valuation
Fair value vs price0.8×Bad
EBIT / EV yield4.1%Average
Profitability
Return on invested capital79.0%Good
Operating margin17.5%Average
Gross profitability25.0%Average
XStocksXray
Caterpillar Inc (CAT)
Financials US$ millions, from SEC filings; last column is the last twelve months
Income statement
FY21
FY22
FY23
FY24
FY25
LTM
Revenue
50,971
59,427
67,060
64,809
67,589
74,729
Gross profit
15,458
18,077
24,293
24,610
22,837
25,662
Operating income
6,878
7,904
12,966
13,072
11,151
13,092
Net income
6,489
6,705
10,335
10,792
8,884
10,843
Diluted EPS ($)
11.83
12.64
20.12
22.05
18.81
23.18
Free cash flow
6,105
6,470
11,288
10,047
8,918
10,698
Gross margin
30.3%
30.4%
36.2%
38.0%
33.8%
34.3%
Operating margin
13.5%
13.3%
19.3%
20.2%
16.5%
17.5%
Net margin
12.7%
11.3%
15.4%
16.7%
13.1%
14.5%
Balance sheet
FY21
FY22
FY23
FY24
FY25
LTM
Total assets
82,793
81,943
87,476
87,764
98,585
102,609
Cash
9,254
7,004
6,978
6,889
9,980
6,713
Total debt
31,437
31,671
29,115
31,744
36,210
–
Equity
16,516
15,891
19,503
19,494
21,318
19,394
Dividend per share ($)
4.36
4.71
5.10
5.53
5.94
–
Revenue and net income US$ billions: navy revenue, teal net income
Margins blue gross, teal operating, brown net
Latest quarters
Mar 2025
Jun 2025
Sep 2025
Dec 2025
Mar 2026
Jun 2026
Revenue ($M)
14,249
16,569
17,638
19,133
17,415
20,543
Growth vs a year earlier
−9.8%
−0.7%
+9.5%
+18.0%
+22.2%
+24.0%
Net income ($M)
2,003
2,179
2,299
2,403
2,548
3,593
Diluted EPS ($)
4.20
4.62
4.88
–
5.47
7.77
XStocksXray
Caterpillar Inc (CAT)
Peers in Construction Machinery & Heavy Transportation Equipment
Every number comes from SEC filings, end-of-day prices and the StocksXray models described on the methodology page. The X-Ray Score ranks each metric against the company's own sector. Fair value is the average of up to 15 valuation models, most of them anchored to the company's own multiples, so it stays near the price and should be read as a range, not a point. Analyst ratings, price targets and earnings-call summaries are not part of this report. Educational research, not financial advice; read the disclaimer.
