Caterpillar Inc. (CAT) Valuation
Historical valuation analysis based on 1281 data points (2021-09-10 to 2026-10-16)
Caterpillar is the world's leading manufacturer of construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives. Its repor...
Caterpillar Inc. (CAT) currently trades at a P/E ratio of 30.98 (historical range: 11.87–52.21, median: 17.65), placing it at the 85th percentile — expensive relative to its history, P/S ratio of 4.50 (range: 1.54–6.96, 85th percentile — expensive relative to its history), EV/EBITDA of 27.66 (range: 12.03–44.92, 85th percentile).
Over the historical period (2021-09-10 to 2026-10-16), Caterpillar Inc.'s P/E ratio has expanded by 40% over the observed period (from an average of 17.6 to 24.7).
Caterpillar Inc. trades well above its own historical valuation range across most metrics.
Historical Valuation Metrics
| Metric | Current | Median | %ile | Assessment |
|---|---|---|---|---|
| P/E Ratio | 30.98 | 17.65 | 85th | expensive relative to its history |
| P/S Ratio | 4.50 | 2.46 | 85th | expensive relative to its history |
| EV/EBITDA | 27.66 | 17.96 | 85th | expensive relative to its history |
| FCF Yield | 3.18% | 5.56% | 16th | expensive relative to its history |
Caterpillar Inc. (CAT) Valuation & P/E History
Caterpillar Inc. (CAT) is a US-listed stock operating in the Industrials sector, specifically the Construction Machinery & Equip industry currently trading at $729.50 with a market capitalization of $335.3 billion. This page provides historical valuation analysis for CAT based on 1281 data points covering 2021-09-10 to 2026-10-16. The P/E ratio of 30.98 is above the historical median of 17.65, placing CAT at the 85th percentile of its valuation range. The P/S ratio of 4.50 compares to a median of 2.46.
CAT Valuation Metrics & Historical Range
The valuation table above shows Caterpillar Inc.'s current and historical valuation multiples, including P/E ratio, P/S ratio, EV/EBITDA, FCF yield, and dividend yield. Each metric is compared to its own historical range to determine whether CAT is currently trading above or below its typical valuation levels.
- P/E ratio: Price-to-earnings measures how much investors pay per dollar of earnings. A P/E above the historical median suggests CAT is expensively valued; below the median suggests it is cheap.
- P/S ratio: Price-to-sales is useful for companies with volatile or negative earnings. Lower P/S relative to history may indicate value.
- EV/EBITDA: Enterprise value to EBITDA adjusts for debt and cash, providing a capital-structure-neutral valuation measure for Caterpillar Inc..
- FCF yield: Free cash flow yield shows the cash return relative to market price. Higher yields may indicate undervaluation.
Is CAT Overvalued or Undervalued?
Caterpillar Inc. trades well above its own historical valuation range across most metrics. The overall valuation percentile of 85 combines P/E, P/S, and EV/EBITDA percentiles into a single measure of how expensive CAT is relative to its own history. A percentile below 25 suggests the stock may be undervalued, while a percentile above 75 suggests it may be overvalued.
However, valuation is only one factor in investment decisions. A stock can remain "overvalued" for years if growth accelerates, or "undervalued" if the business deteriorates. Always combine valuation analysis with financial statement analysis and the full CAT analysis page for a complete picture.
Valuation data is computed from historical price and fundamental data via Polygon.io and Finnhub.CAT trades on NYSE/NASDAQ. This page is for informational purposes only and is not financial advice.