Is Caterpillar, Inc. overvalued or undervalued?
2025-11-25 11:14:21As of 21 November 2025, the valuation grade for Caterpillar, Inc. moved from very expensive to expensive, indicating a slight improvement in its valuation outlook. Despite this change, the company appears overvalued based on its current metrics, including a P/E ratio of 26, a Price to Book Value of 14.47, and an EV to EBITDA of 20.17. In comparison, peers such as Deere & Co. have a higher P/E ratio of 44.92, while Cummins, Inc. shows a lower EV to EBITDA of 18.21, suggesting Caterpillar's valuation remains elevated relative to its industry. Caterpillar's stock has performed well recently, with a year-to-date return of 54.26%, significantly outpacing the S&P 500's return of 12.26% during the same period. This strong performance may reflect investor optimism, but the current valuation ratios suggest that the stock is overvalued....
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2025-11-23 11:09:53As of 21 November 2025, the valuation grade for Caterpillar, Inc. moved from very expensive to expensive, indicating a shift in perception regarding its valuation. The company appears to be overvalued based on its current metrics, particularly with a P/E ratio of 26, a Price to Book Value of 14.47, and an EV to EBITDA ratio of 20.17. In comparison, peers such as Deere & Co. have a significantly higher P/E of 44.92, while Cummins, Inc. has a lower EV to EBITDA of 18.21, suggesting that Caterpillar's valuation does not align favorably with its industry counterparts. Caterpillar's recent stock performance has been strong, with a year-to-date return of 51.73%, significantly outperforming the S&P 500's return of 12.26% over the same period. However, despite this impressive performance, the current valuation metrics suggest that the stock may not be a prudent investment at its present price level....
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