Caterpillar Inc. (CAT) Financial Ratios
30 years of historical data (1996–2025) · Industrials · Agricultural - Machinery
EV/EBITDA
↑
33.72
↑+113% vs avg
5yr avg: 15.83
30Y Low7.2·High22.4
P/FCF
↑
40.97
↑+86% vs avg
5yr avg: 22.07
30Y Low8.9·High58.4
P/B Ratio
↑
19.90
↑+124% vs avg
5yr avg: 8.87
30Y Low2.7·High12.6
ROE
↑
43.5%
-9% vs avg
5yr avg: 47.9%
30Y Low-0%·High58%
Debt/EBITDA
↓
3.22
+1% vs avg
5yr avg: 3.20
30Y Low2.4·High10.9
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
CAT Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
Caterpillar Inc. trades at 48.0x earnings, 145% above its 5-year average of 19.6x, sitting at the 97th percentile of its historical range. Compared to the Industrials sector median P/E of 25.7x, the stock trades at a premium of 87%. On a free-cash-flow basis, the stock trades at 41.0x P/FCF, 86% above the 5-year average of 22.1x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $420.9B | $268.7B | $177.5B | $151.9B | $127.1B | $113.4B | $99.9B | $83.8B | $76.2B | $94.4B | $54.2B |
| Enterprise Value | $454.2B | $302.0B | $209.1B | $182.8B | $157.1B | $141.9B | $127.7B | $121.5B | $104.8B | $129.3B | $91.0B |
| P/E Ratio → | 48.04 | 30.42 | 16.45 | 14.70 | 18.95 | 17.48 | 33.34 | 13.75 | 12.38 | 125.06 | — |
| P/S Ratio | 6.23 | 3.98 | 2.74 | 2.26 | 2.14 | 2.22 | 2.39 | 1.56 | 1.39 | 2.08 | 1.41 |
| P/B Ratio | 19.90 | 12.60 | 9.11 | 7.79 | 8.00 | 6.87 | 6.49 | 5.73 | 5.41 | 6.86 | 4.10 |
| P/FCF | 40.97 | 26.15 | 20.13 | 15.51 | 24.59 | 23.99 | 23.71 | 19.75 | 20.91 | 28.02 | 19.99 |
| P/OCF | 35.85 | 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
CAT EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
Caterpillar Inc.'s enterprise value stands at 33.7x EBITDA, 113% above its 5-year average of 15.8x. The Industrials sector median is 13.7x, placing the stock at a 147% premium on an enterprise-value basis.
| 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 | 33.72 | 22.42 | 13.73 | 12.10 | 15.51 | 15.38 | 18.28 | 11.18 | 9.48 | 17.63 | 21.68 |
| EV / EBIT | 40.52 | 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 |
CAT Profitability
Margins and return-on-capital ratios measuring operating efficiency
Caterpillar Inc. earns an operating margin of 16.6%, above the Industrials sector average of 4.7%. Operating margins have compressed from 19.3% to 16.6% over the past 3 years, signaling potential cost pressures or competitive headwinds. Return on equity of 43.5% is exceptionally high — well above the sector median of 8.2%. ROIC of 15.9% represents solid returns on invested capital versus a sector median of 6.3%.
Margins
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% |
Return on Capital
| 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% |
CAT Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
Caterpillar Inc. carries a Debt/EBITDA ratio of 3.2x, which is moderately leveraged (roughly in line with the sector average of 3.1x). Net debt stands at $33.4B ($43.3B total debt minus $10.0B cash). Interest coverage of 12.2x signals virtually no risk of debt distress — earnings comfortably cover interest obligations.
| 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 |
CAT Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
A current ratio of 1.44x means Caterpillar Inc. can comfortably meet its short-term obligations, though there is limited excess liquidity. The quick ratio of 0.94x is notably lower than the current ratio, indicating a significant portion of current assets is tied up in inventory. The current ratio has improved from 1.35x to 1.44x over the past 3 years.
| 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 |
CAT Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Caterpillar Inc. returns 1.9% to shareholders annually — split between a 0.6% dividend yield and 1.2% buyback yield. The payout ratio of 31.0% is conservative, leaving significant room for dividend growth or reinvestment. The earnings yield of 2.1% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
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 | 0.6% | 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% | — |
Total Shareholder Return Metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 2.1% | 3.3% | 6.1% | 6.8% | 5.3% | 5.7% | 3.0% | 7.3% | 8.1% | 0.8% | — |
| FCF Yield | 2.4% | 3.8% | 5.0% | 6.4% | 4.1% | 4.2% | 4.2% | 5.1% | 4.8% | 3.6% | 5.0% |
| Buyback Yield | 1.2% | 1.9% | 4.3% | 3.3% | 3.3% | 2.4% | 1.1% | 4.8% | 5.0% | 0.0% | 0.0% |
| Total Shareholder Yield | 1.9% | 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 |
Peer Comparison
Compare CAT with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 CATYou | $421B | 48.0 | 33.7 | 41.0 | 32.3% | 16.6% | 43.5% | 15.9% | 3.2 |
 DE | $156B | 31.1 | 19.9 | 48.3 | 36.5% | 18.8% | 19.3% | 7.7% | 6.0 |
 CNH | $13B | 25.2 | 10.7 | 6.4 | 31.4% | 15.4% | 6.5% | 6.6% | 7.9 |
 AGCO | $8B | 11.7 | 9.9 | 11.2 | 24.8% | 6.9% | 16.9% | 8.3% | 2.6 |
 PCAR | $60B | 25.1 | 13.3 | 19.7 | 16.2% | 10.4% | 12.9% | 12.2% | — |
 CMI | $93B | 32.9 | 19.4 | 39.1 | 25.3% | 11.9% | 23.0% | 16.7% | 1.6 |
 VMC | $38B | 35.9 | 18.5 | 33.3 | 27.3% | 20.1% | 13.0% | 8.8% | 2.3 |
 MLM | $37B | 32.2 | 19.4 | 37.4 | 30.0% | 23.3% | 11.7% | 7.6% | 2.5 |
 TEX | $4B | 18.3 | 9.5 | 12.4 | 19.4% | 8.8% | 11.3% | 8.6% | 4.4 |
 ACCO | $371M | 9.1 | 6.8 | 7.3 | 29.8% | 7.1% | 6.5% | 5.5% | 5.1 |
 OSK | $10B | 15.3 | 8.8 | 15.7 | 16.9% | 9.1% | 14.9% | 14.1% | 0.9 |
| Industrials Median | — | 25.7 | 13.7 | 21.2 | 33.0% | 4.7% | 8.2% | 6.3% | 3.1 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
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Start ComparisonCAT — Frequently Asked Questions
Quick answers to the most common questions about buying CAT stock.
What is Caterpillar Inc.'s P/E ratio?
Caterpillar Inc.'s current P/E ratio is 48.0x. The historical average is 21.1x. This places it at the 97th percentile of its historical range.
What is Caterpillar Inc.'s EV/EBITDA?
Caterpillar Inc.'s current EV/EBITDA is 33.7x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 13.0x.
What is Caterpillar Inc.'s ROE?
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%.
Is CAT stock overvalued?
Based on historical data, Caterpillar Inc. is trading at a P/E of 48.0x. This is at the 97th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
What is Caterpillar Inc.'s dividend yield?
Caterpillar Inc.'s current dividend yield is 0.65% with a payout ratio of 31.0%.
What are Caterpillar Inc.'s profit margins?
Caterpillar Inc. has 32.3% gross margin and 16.6% operating margin. Operating margin between 10-20% is typical for established companies.
How much debt does Caterpillar Inc. have?
Caterpillar Inc.'s Debt/EBITDA ratio is 3.2x, indicating high leverage. A ratio between 2-4x is manageable but warrants monitoring.