Caterpillar Valuation
| CAT1 Stock | 311.50 1.00 0.32% |
At this time, the firm appears to be overvalued. Caterpillar shows a prevailing Real Value of USD262.5 per share. The current price of the firm is USD311.5. Our model approximates the value of Caterpillar from analyzing the firm fundamentals such as Profit Margin of 0.11 %, return on equity of 0.41, and Current Valuation of 144.41 B as well as examining its technical indicators and probability of bankruptcy.
Overvalued
Today
Please note that Caterpillar's price fluctuation is very steady at this time. Calculation of the real value of Caterpillar is based on 3 months time horizon. Increasing Caterpillar's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
The fair value of the Caterpillar stock is determined by what a typical buyer is willing to pay for full or partial control of Caterpillar. Since Caterpillar is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Caterpillar Stock. However, Caterpillar's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 311.5 | Real 262.5 | Hype 312.5 | Naive 302.92 |
The real value of Caterpillar Stock, also known as its intrinsic value, is the underlying worth of Caterpillar Company, which is reflected in its stock price. It is based on Caterpillar's financial performance, growth prospects, management team, or industry conditions. The intrinsic value of Caterpillar's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, or news.
Estimating the potential upside or downside of Caterpillar helps investors to forecast how Caterpillar stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Caterpillar more accurately as focusing exclusively on Caterpillar's fundamentals will not take into account other important factors: Caterpillar Total Value Analysis
Caterpillar is currently estimated to have takeover price of 144.41 B with market capitalization of 119.79 B, debt of 9.5 B, and cash on hands of . Please note that takeover price may be misleading and is a subject to mistakes in financial statements. We encourage investors to thoroughly investigate all of the Caterpillar fundamentals before making investing decisions based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
144.41 B | 119.79 B | 9.5 B |
Caterpillar Investor Information
About 72.0% of the company shares are held by institutions such as insurance companies. The company has Price/Earnings To Growth (PEG) ratio of 1.56. Caterpillar recorded earning per share (EPS) of 11.92. The entity last dividend was issued on the 19th of January 2023. The firm had 2:1 split on the 14th of July 2005. Based on the analysis of Caterpillar's profitability, liquidity, and operating efficiency, Caterpillar is not in a good financial situation at the moment. It has a very high risk of going through financial straits in April.Caterpillar Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Caterpillar has an asset utilization ratio of 72.52 percent. This indicates that the Company is making USD0.73 for each dollar of assets. An increasing asset utilization means that Caterpillar is more efficient with each dollar of assets it utilizes for everyday operations.Caterpillar Ownership Allocation
Caterpillar holds a total of 516.35 Million outstanding shares. The majority of Caterpillar outstanding shares are owned by other corporate entities. These outside corporations are usually referred to as non-private investors looking to acquire positions in Caterpillar to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in Caterpillar. Please pay attention to any change in the institutional holdings of Caterpillar as this could imply that something significant has changed or is about to change at the company. Please note that no matter how many assets the company secures, if the real value of the firm is less than the current market value, you may not be able to make money on it.Caterpillar Profitability Analysis
The company reported the revenue of 59.43 B. Net Income was 6.7 B with profit before overhead, payroll, taxes, and interest of 15.56 B.Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Caterpillar's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Caterpillar and how it compares across the competition.
About Caterpillar Valuation
The stock valuation mechanism determines Caterpillar's current worth on a weekly basis. Our valuation model uses a comparative analysis of Caterpillar. We calculate exposure to Caterpillar's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Caterpillar's related companies.8 Steps to conduct Caterpillar's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Caterpillar's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Caterpillar's valuation analysis, follow these 8 steps:- Gather financial information: Obtain Caterpillar's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Caterpillar's revenue streams: Identify Caterpillar's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Caterpillar's industry and market trends, including the size of the market, growth rate, and competition.
- Establish Caterpillar's growth potential: Evaluate Caterpillar's management, business model, and growth potential.
- Determine Caterpillar's financial performance: Analyze its financial statements to assess its historical performance and future potential.
- Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
- Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Caterpillar's estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Complementary Tools for Caterpillar Stock analysis
When running Caterpillar's price analysis, check to measure Caterpillar's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Caterpillar is operating at the current time. Most of Caterpillar's value examination focuses on studying past and present price action to predict the probability of Caterpillar's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Caterpillar's price. Additionally, you may evaluate how the addition of Caterpillar to your portfolios can decrease your overall portfolio volatility.
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