Latest Ratios: P/E Ratio 43.1x · EV/EBITDA 30.2x · ROE 43.5%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $374.0B | $268.7B | $177.5B | $151.9B | $127.1B | $113.4B | $99.9B | $83.8B | $76.2B | $94.4B | $54.2B |
| Enterprise Value | $407.4B | $302.0B | $209.1B | $182.8B | $157.1B | $141.9B | $127.7B | $121.5B | $104.8B | $129.3B | $91.0B |
| P/E Ratio → | 43.12 | 30.42 | 16.45 | 14.70 | 18.95 | 17.48 | 33.34 | 13.75 | 12.38 | 125.06 | — |
| P/S Ratio | 5.53 | 3.98 | 2.74 | 2.26 | 2.14 | 2.22 | 2.39 | 1.56 | 1.39 | 2.08 | 1.41 |
| P/B Ratio | 17.86 | 12.60 | 9.11 | 7.79 | 8.00 | 6.87 | 6.49 | 5.73 | 5.41 | 6.86 | 4.10 |
| P/FCF | 36.41 | 26.15 | 20.13 | 15.51 | 24.59 | 23.99 | 23.71 | 19.75 | 20.91 | 28.02 | 19.99 |
| P/OCF | 31.86 | 22.89 | 14.75 | 11.79 | 16.36 | 15.75 | 15.78 | 12.13 | 11.61 | 16.55 | 9.61 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 4.47 | 3.23 | 2.73 | 2.64 | 2.78 | 3.06 | 2.26 | 1.92 | 2.84 | 2.36 |
| EV / EBITDA | 30.24 | 22.42 | 13.73 | 12.10 | 15.51 | 15.38 | 18.28 | 11.18 | 9.48 | 17.63 | 21.68 |
| EV / EBIT | 36.34 | 23.98 | 15.06 | 13.48 | 17.08 | 16.33 | 28.31 | 14.75 | 12.74 | 28.03 | 141.26 |
| EV / FCF | — | 29.40 | 23.70 | 18.66 | 30.40 | 30.03 | 30.31 | 28.63 | 28.78 | 38.37 | 33.56 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 32.3% | 32.3% | 36.0% | 34.7% | 29.5% | 29.4% | 28.9% | 30.5% | 31.1% | 29.8% | 25.7% |
| Operating Margin | 16.6% | 16.6% | 20.2% | 19.3% | 13.3% | 13.5% | 10.9% | 15.4% | 15.2% | 9.8% | 3.0% |
| Net Profit Margin | 13.1% | 13.1% | 16.7% | 15.4% | 11.3% | 12.7% | 7.2% | 11.3% | 11.2% | 1.7% | -0.2% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 43.5% | 43.5% | 55.3% | 58.4% | 41.4% | 40.7% | 20.0% | 42.4% | 44.1% | 5.6% | -0.5% |
| ROA | 9.5% | 9.5% | 12.3% | 12.2% | 8.1% | 8.1% | 3.8% | 7.8% | 7.9% | 1.0% | -0.1% |
| ROIC | 15.9% | 15.9% | 19.3% | 20.2% | 13.0% | 11.7% | 7.8% | 14.3% | 13.6% | 6.8% | 1.7% |
| ROCE | 19.1% | 19.1% | 24.2% | 25.1% | 15.3% | 13.0% | 8.7% | 16.2% | 16.5% | 9.0% | 2.3% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 2.03 | 2.03 | 1.97 | 1.94 | 2.33 | 2.29 | 2.42 | 2.57 | 2.60 | 2.53 | 2.78 |
| Debt / EBITDA | 3.22 | 3.22 | 2.52 | 2.51 | 3.65 | 4.09 | 5.32 | 3.47 | 3.31 | 4.75 | 8.77 |
| Net Debt / Equity | — | 1.56 | 1.62 | 1.58 | 1.89 | 1.73 | 1.81 | 2.57 | 2.04 | 2.53 | 2.78 |
| Net Debt / EBITDA | 2.48 | 2.48 | 2.07 | 2.05 | 2.96 | 3.09 | 3.98 | 3.47 | 2.59 | 4.75 | 8.77 |
| Debt / FCF | — | 3.25 | 3.57 | 3.16 | 5.80 | 6.04 | 6.60 | 8.88 | 7.87 | 10.35 | 13.57 |
| Interest Coverage | 12.23 | 12.23 | 27.12 | 26.54 | 20.76 | 17.92 | 8.84 | 19.74 | 20.51 | 8.84 | 1.29 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.44 | 1.44 | 1.42 | 1.35 | 1.39 | 1.46 | 1.53 | 1.47 | 1.37 | 1.35 | 1.22 |
| Quick Ratio | 0.94 | 0.94 | 0.89 | 0.87 | 0.87 | 0.99 | 1.09 | 1.05 | 0.96 | 0.97 | 0.89 |
| Cash Ratio | 0.27 | 0.27 | 0.21 | 0.20 | 0.22 | 0.31 | 0.36 | 0.31 | 0.28 | — | — |
| Asset Turnover | — | 0.69 | 0.74 | 0.77 | 0.73 | 0.62 | 0.53 | 0.69 | 0.70 | 0.59 | 0.52 |
| Inventory Turnover | 2.52 | 2.52 | 2.47 | 2.64 | 2.58 | 2.56 | 2.60 | 3.32 | 3.27 | 3.18 | 3.32 |
| Days Sales Outstanding | — | 116.48 | 106.15 | 102.44 | 109.75 | 124.42 | 146.71 | 121.47 | 116.41 | 130.01 | 137.36 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 0.7% | 1.0% | 1.5% | 1.7% | 1.9% | 2.1% | 2.2% | 2.5% | 2.6% | 1.9% | 3.3% |
| Payout Ratio | 31.0% | 31.0% | 24.5% | 24.8% | 36.4% | 35.9% | 74.8% | 35.0% | 31.7% | 242.8% | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 2.3% | 3.3% | 6.1% | 6.8% | 5.3% | 5.7% | 3.0% | 7.3% | 8.1% | 0.8% | — |
| FCF Yield | 2.7% | 3.8% | 5.0% | 6.4% | 4.1% | 4.2% | 4.2% | 5.1% | 4.8% | 3.6% | 5.0% |
| Buyback Yield | 1.4% | 1.9% | 4.3% | 3.3% | 3.3% | 2.4% | 1.1% | 4.8% | 5.0% | 0.0% | 0.0% |
| Total Shareholder Yield | 2.1% | 3.0% | 5.8% | 5.0% | 5.2% | 4.4% | 3.4% | 7.4% | 7.5% | 1.9% | 3.3% |
| Shares Outstanding | — | $469M | $489M | $514M | $530M | $549M | $549M | $568M | $599M | $599M | $584M |
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying CAT stock.
Caterpillar Inc.'s current P/E ratio is 43.1x. The historical average is 21.1x. This places it at the 97th percentile of its historical range.
Caterpillar Inc.'s current EV/EBITDA is 30.2x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 13.0x.
Caterpillar Inc.'s return on equity (ROE) is 43.5%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 30.3%.
Based on historical data, Caterpillar Inc. is trading at a P/E of 43.1x. This is at the 97th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Caterpillar Inc.'s current dividend yield is 0.72% with a payout ratio of 31.0%.
Caterpillar Inc. has 32.3% gross margin and 16.6% operating margin. Operating margin between 10-20% is typical for established companies.
Caterpillar Inc.'s Debt/EBITDA ratio is 3.2x, indicating high leverage. A ratio between 2-4x is manageable but warrants monitoring.
Key Metrics
Top Statement Risk
Tariff-driven margin compression risk
Metrics are mathematically derived from official filings.
Margin Expansion Defies Tariff Pressures
Gross margin expanded to 37.8% in 2026Q2 from 33.0% a year earlier, while operating margin reached 20.9%, according to the latest quarterly data, indicating strong pricing power and mix benefits.
The 480 basis point gross margin improvement suggests that Caterpillar is successfully passing through input cost increases and benefiting from a richer mix of high-margin aftermarket parts and services. Operating leverage is evident as operating income grew 48% year-over-year on 24% revenue growth, amplifying the bottom line. However, the sustainability of these margins is uncertain given ongoing tariff challenges and potential competitive pressures in mid-tier equipment segments.
ROIC Lags Margin Gains
ROIC improved to 5.6% in 2026Q2 from 4.1% a year earlier, but remains below the 5.2% peak in 2024Q2, as per the quarterly ratio data, suggesting capital efficiency is not keeping pace with profitability.
Despite record margins, ROIC is only modestly above its two-year average, indicating that the company is deploying significant capital into working capital and fixed assets, which dilutes returns. The asset turnover ratio of 0.21 is low, reflecting the heavy capital intensity of the business. Investors should monitor whether the services-led growth strategy can improve capital efficiency over time, as the current ROIC does not fully reflect the earnings power suggested by margins.
Working Capital Cycle Lengthens
Cash conversion cycle extended to 174 days in 2026Q2 from 166 days in 2025Q4, driven by higher DSO and DIO, as per the quarterly data, indicating increased working capital absorption.
DSO rose to 102 days and DIO to 143 days, while DPO remained relatively stable at 71 days, causing the CCC to widen. This suggests that Caterpillar is holding more inventory and taking longer to collect receivables, possibly due to supply chain normalization and dealer inventory builds. The lengthening cycle ties up cash and may explain the cash flow lag relative to net income, warranting close monitoring of working capital management.
Leverage Creeps Higher Amid Expansion
Debt-to-equity rose to 2.33 in 2026Q2 from 2.03 in 2025Q4, while interest coverage improved to 34.76, as per the latest balance sheet data, indicating rising leverage but still comfortable debt service.
The increase in D/E is partly due to equity contraction from aggressive buybacks, as equity fell to $19.4B from a peak of $21.3B in 2025Q4. Interest coverage remains strong at 34.76, suggesting that debt service is not yet a concern. However, the rising leverage trend, combined with the finance arm's debt, warrants monitoring for covenant headroom and refinancing risk, especially if cash flow conversion remains weak.
Liquidity Buffer Remains Thin
Current ratio improved to 1.37 in 2026Q2 from 1.35 in 2026Q1, but quick ratio is only 0.85, as per the quarterly data, indicating reliance on inventory to meet short-term obligations.
The quick ratio below 1 suggests that Caterpillar would struggle to cover current liabilities without selling inventory, which is a concern in a downturn. However, the company's access to capital markets and its finance arm provide additional liquidity sources not captured in these ratios. The modest cash balance of $6.7B provides a buffer, but the thin quick ratio highlights the importance of maintaining strong cash flow generation.
P/E Misleads in Cyclical Peak
The trailing P/E of 43.97 and forward P/E of 30.58 appear elevated, but using peak earnings understates normalized value; EV/EBITDA of 30.78 also reflects cyclical peak, as per the valuation data.
Caterpillar's earnings are highly cyclical, and current record margins and EPS are likely near the top of the cycle. Applying a P/E to peak earnings overstates the multiple's attractiveness, as normalized earnings are likely lower. A more appropriate metric is EV/EBITDA over a mid-cycle average, or a P/E on normalized earnings, to avoid overpaying for cyclical peaks. Investors should also consider the services revenue growth target, which could reduce cyclicality and justify a higher multiple if achieved.