--- title: Caterpillar (CAT) — intrinsic value and fair price canonical: https://sweetvaluelab.com/stocks/cat ticker: CAT as_of: 2026-10-17 sector: Industrials industry: Agricultural - Machinery --- # Caterpillar (CAT) Caterpillar (CAT) closed at $730.76 on Oct 16, 2026, overvalued by 180% vs its model value of $261.24 (from a five-year discounted cash flow). ## Key figures | Figure | Value | | --- | ---: | | Last close | $730.76 (Oct 16, 2026) | | Model value (from a five-year discounted cash flow) | $261.24 | | Price vs model | overvalued by 180% vs model | | Range of that model | $176.23 – $455.16 | | Market value | $335.9B | | P/E (fiscal 2025) | 38.8 | | Net margin (fiscal 2025) | 13.1% | | Free cash flow (fiscal 2025) | $8.9B | | Dividend yield (trailing twelve months) | 0.84% | | Beta | 1.58 | | Cost of capital (WACC) | 10.16% | | Business classification | Cyclical (Low/slowing growth (~0% recent), Moderate margins (13% net margin), Highly cyclical earnings) | ## On the stock lists | List | Place | Figure | Page | | --- | ---: | ---: | --- | | Largest companies | #33 | $335.9B | https://sweetvaluelab.com/lists/largest-companies | | Dividend growth streaks | #38 | 32 years | https://sweetvaluelab.com/lists/dividend-growth-streaks | ## Dividends | Figure | Value | | --- | ---: | | Trailing dividend yield | 0.84% | | Dividends per share, last 12 months | $6.16 | | Dividends / free cash flow (fiscal 2025) | 30.8% | | Raised | 32 years in a row | | Growth over 5 years | 8.0% a year | | Latest payment | $1.63, ex-date Jul 20, 2026, paid Aug 19, 2026 | | Year of payments | Dividends per share | | --- | ---: | | To Jul 19, 2021 | $4.20 | | To Jul 19, 2022 | $4.53 | | To Jul 19, 2023 | $4.90 | | To Jul 22, 2024 | $5.31 | | To Jul 21, 2025 | $5.74 | | Trailing twelve months (to Jul 20, 2026) | $6.16 | ## Valuation models Each model's value per share and the role the engine gave it for this business. The headline above is one model's value; every other model is listed with its own, and each has a page of its own under the valuation. Computed Oct 17, 2026. | Model | Role | Value per share | Low | High | | --- | --- | ---: | ---: | ---: | | DCF · Perpetuity growth · 5y | primary | $261.24 | $176.23 | $455.16 | | DCF · Perpetuity growth · 10y | cross check | $310.06 | $214.07 | $526.27 | | DCF · EBITDA exit · 5y | cross check | $425.53 | $281.84 | $594.51 | | DCF · EBITDA exit · 10y | cross check | $452.03 | $297.48 | $657.88 | | P/E · peers | cross check | $727.20 | $702.27 | $742.31 | | P/E · own history | cross check | $436.33 | $386.78 | $529.49 | | PEG | sanity check | $602.58 | $602.58 | $602.58 | | EV/EBITDA · peers | cross check | $431.72 | $401.09 | $456.36 | | EV/Revenue · peers | cross check | $452.94 | $367.38 | $563.23 | | Earnings power value | cross check | $55.53 | $41.24 | $74.76 | | Dividend discount | cross check | $104.03 | $76.79 | $150.16 | ## Insider activity (SEC Form 4) Past 90 days: 0 open-market buys ($0) and 14 open-market sales ($26.2M); 10b5-1 plan sales included. | Date | Insider | Relationship | Transaction | Shares | Value | | --- | --- | --- | --- | ---: | ---: | | Sep 30, 2026 | GOOD LYNN J | Director | Grant / award | 30 | $24,630.3 | | Sep 30, 2026 | MacLennan David | Director | Grant / award | 28 | $22,988.3 | | Sep 25, 2026 | Kaiser Jason | Group President | Grant / award | 11 | $9,037.4 | | Sep 25, 2026 | Epley Kyle Joseph | Chief Financial Officer | Grant / award | 7 | $5,751.1 | | Sep 25, 2026 | Epley Kyle Joseph | Chief Financial Officer | Grant / award | 11 | $9,037.4 | ## Recent SEC filings | Filed | Form | What | Filing | | --- | --- | --- | --- | | Oct 15, 2026 | 8-K | 5.02 Departure/Election of Directors or Officers; 8.01 Other Events; 9.01 Financial Statements and Exhibits | https://www.sec.gov/Archives/edgar/data/18230/000110465926116198/tm2627668d1_8k.htm | | Sep 1, 2026 | 8-K | 1.01 Entry into a Material Agreement; 2.03 Creation of a Direct Financial Obligation; 9.01 Financial Statements and Exhibits | https://www.sec.gov/Archives/edgar/data/18230/000110465926104197/tm2624321d1_8k.htm | | Aug 5, 2026 | 10-Q | Quarterly report | https://www.sec.gov/Archives/edgar/data/18230/000001823026000046/cat-20260630.htm | | Aug 4, 2026 | 8-K | 2.02 Results of Operations (Earnings); 7.01 Regulation FD Disclosure; 9.01 Financial Statements and Exhibits | https://www.sec.gov/Archives/edgar/data/18230/000001823026000040/cat-20260804.htm | | Jun 11, 2026 | 8-K | 5.07 Submission of Matters to a Shareholder Vote; 7.01 Regulation FD Disclosure; 9.01 Financial Statements and Exhibits | https://www.sec.gov/Archives/edgar/data/18230/000110465926072929/tm2617177d1_8k.htm | ## Superinvestors holding it (latest 13F) | Manager | Quarter | Shares | Value | | --- | --- | ---: | ---: | | Gates | 2026-06-30 | 6,353,614 | $6.8B | | Thomas Gayner | 2026-06-30 | 328,650 | $350.0M | | Dodge & Cox | 2026-06-30 | 39,404 | $42.0M | | Mairs & Power | 2026-06-30 | 18,102 | $19.3M | 7 tracked managers in all. ## About Caterpillar Inc., a global enterprise founded in 1925 and headquartered in Deerfield, Illinois (having previously operated as Caterpillar Tractor Co. until its rebranding in 1986), is a premier manufacturer and vendor of heavy construction and mining equipment, diesel and natural gas power units, and industrial gas turbines across the world. The company's extensive offerings are organized into several operational divisions: Construction Industries: This segment delivers a broad spectrum of machinery for construction projects, including asphalt pavers, versatile backhoe and skid steer loaders, various sizes of excavators (from compact to heavy-duty), compactors, road-building equipment like cold planers and motorgraders, pipelayers, site preparation tractors, telehandlers, and utility vehicles, alongside a range of wheel loaders and track-type equipment. Resource Industries: Dedicated to… --- Source: https://sweetvaluelab.com/stocks/cat (SweetValueLab, free, no account). Prices and statements from Financial Modeling Prep; filings from SEC EDGAR. Research and educational data, not investment advice; nothing here is a recommendation to buy, sell or hold any security.