Fundamentals · CAT
Valuation Summary for CAT
AI-generated plain-English read of valuation summary for CAT. Updated daily.
Rich multiples, expanding
moderateRich multiples (45.4x) with expanding trajectory — multiples pricing in growth acceleration; any miss compresses sharply.
What will probably happen
- Expanding multiples on an already-expensive stock implies the market expects earnings acceleration — any miss triggers sharp compression.
What to do
- If you HOLD this stock
- You're long expensive multiples that are still expanding — implies the market is pricing in continued growth acceleration. Any disappointment compresses sharply. Hold but trim if the next 2 quarters miss.
- If you're EVALUATING this stock
- Pass unless your conviction on growth durability is high. Expanding multiples already price in the bull case — you're paying for a scenario that hasn't happened yet.
- If you trade OPTIONS
- Sell premium against shares (covered calls); IV likely elevated. Avoid long calls — multiple compression risk dominates if growth disappoints. Bear call spreads hedge the downside.
10 quarters / 3 populated multiples — directionally informative; use more data for full conviction.
Technical details
Technical analysis
- P/Book
- 25.4x
- P/Sales
- 6.6x
- EV/EBITDA
- —
- FCF yield
- —
- EV/Revenue
- —
- P/E (forward)
- —
- Dividend yield
- 0.6%
- Earnings yield
- —
- Income profile
- Growth Profile
- P/E (trailing)
- 45.4x
- Sector context
- Machinery
- Sector comparison
- Unknown Vs Sector
- Absolute valuation
- Richly Valued
- History (quarters)
- 10
- Multiple trajectory
- Expanding
Key levels
| Level | Value |
|---|---|
| pb ratio | 25.395 |
| pe ratio | 45.431 |
| ps ratio | 6.591 |
| n quarters | 10 |
| prior year pe | 19.536 |
| dividend yield | 0.006 |
Caveats
- Multiples should be read alongside growth and quality metrics — a low P/E on declining earnings isn't cheap, it's a value trap warning.
- Sector context wasn't provided — absolute multiples may mislead without industry comparison.