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CaterpillarXSWX:CAT -0.92%81 Debt-to-EBITDA is 2.73 as of Mar. 2026, which is 19% below its 10-year median of 3.37. GuruFocus rates XSWX:CAT with a GF Score™ of 81/100 and a GF Value™ of CHF344.77. The stock has 6 warning signs investors should review. Among 174 Farm & Heavy Construction Machinery companies, Caterpillar ranks worse than 68.97% on this metric.
Debt-to-EBITDA measures a company's ability to pay off its debt.
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
The historical rank and industry rank for Caterpillar's Debt-to-EBITDA or its related term are showing as below:
XSWX:CAT'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: 2.4 Med: 3.37 Max: 10
Current: 2.87
During the past 13 years, the highest Debt-to-EBITDA Ratio of Caterpillar was 10.00. The lowest was 2.40. And the median was 3.37.
XSWX:CAT's Debt-to-EBITDA is ranked worse than 68.97% of 174
companies
in the Farm & Heavy Construction Machinery industry
Industry Median: 1.67
vs XSWX:CAT: 2.87
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.
According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
Caterpillar Debt-to-EBITDA Related Terms
Caterpillar Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for Caterpillar's Debt-to-EBITDA can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
XSWX:CAT vs DE, PCAR, CNH: Debt-to-EBITDA Comparison
For the Farm & Heavy Construction Machinery subindustry, Caterpillar's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Caterpillar Debt-to-EBITDA vs Farm & Heavy Construction Machinery Industry
For the Farm & Heavy Construction Machinery industry and Industrials sector, Caterpillar's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Caterpillar's Debt-to-EBITDA falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data,
the EBITDA data used here is four times the quarterly (Mar. 2026) EBITDA data.
Caterpillar (XSWX:CAT) has a Debt-to-EBITDA of 2.73 as of Mar. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Caterpillar. This is 19% below median its historical median of 3.37. Over the past decade, Caterpillar's Debt-to-EBITDA has ranged from 2.40 to 10.00. According to the industry distribution chart, Caterpillar ranks #120 out of 174 companies in the Farm & Heavy Construction Machinery industry, placing it in the top 69%.
Is Caterpillar's Debt-to-EBITDA too high?
Caterpillar's current Debt-to-EBITDA of 2.73 is 19% below median its 10-year median of 3.37. Over the past 10 years, this metric has ranged from a low of 2.40 to a high of 10.00. The Farm & Heavy Construction Machinery industry median Debt-to-EBITDA is 1.67. Caterpillar's value of 2.73 is 63.5% above this industry median. Based on the distribution chart, Caterpillar ranks #120 out of 174 companies in the Farm & Heavy Construction Machinery industry, which is below the industry midpoint. Overall, Caterpillar has a GF Score™ of 81/100, reflecting its overall financial health beyond just this single metric.
How does Caterpillar's Debt-to-EBITDA compare to DE and PCAR?
According to the Farm & Heavy Construction Machinery industry distribution chart, Caterpillar ranks #120 out of 174 companies for Debt-to-EBITDA. This places Caterpillar in the lower half of its industry. The industry median Debt-to-EBITDA is 1.67. Caterpillar's value of 2.73 is 63.5% above this benchmark. Historically, Caterpillar's own Debt-to-EBITDA has ranged from 2.40 to 10.00 over the past decade. While the company's 10-year median is 3.37 vs. the industry median of 1.67, Caterpillar has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-EBITDA for a Farm & Heavy Construction Machinery company?
The median Debt-to-EBITDA among Farm & Heavy Construction Machinery companies is 1.67, based on 174 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Caterpillar's current Debt-to-EBITDA of 2.73 is 63.5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Caterpillar. For the Farm & Heavy Construction Machinery industry, the median Debt-to-EBITDA is 1.67 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Caterpillar's current Debt-to-EBITDA is 2.73, which is 19% below median its own 10-year median of 3.37. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Caterpillar stock overvalued right now?
Caterpillar (XSWX:CAT) has a current Debt-to-EBITDA of 2.73. The stock's GF Value™ is CHF344.77, compared to a current price of CHF763.20 — trading 121.4% above its estimated fair value. The current Debt-to-EBITDA is 2.73, which is 19% below median its 10-year median of 3.37 and 63.5% above the Farm & Heavy Construction Machinery industry median of 1.67. Caterpillar's overall GF Score™ is 81/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For Caterpillar (XSWX:CAT), the current Debt-to-EBITDA is 2.73 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Caterpillar (XSWX:CAT) Overvalued in 2026?
Based on GuruFocus' analysis, Caterpillar stock appears to be overvalued.
The current stock price of CHF763.20 is trading 121.4% above its estimated GF Value™ of CHF344.77.
Key valuation signals for XSWX:CAT:
Debt-to-EBITDA: 2.73 (19% below median its 10-year median of 3.37)
GF Value™: CHF344.77 vs. price of CHF763.20 (121.4% above fair value)
Industry Position: 63.5% above the Farm & Heavy Construction Machinery median (#120 of 174)
No single metric tells the full story. See the XSWX:CAT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Caterpillar is the world's leading manufacturer of construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives. Its reporting segments are construction, resource, energy, and transportation. Market share approaches 20% across many products. Caterpillar operates a captive finance subsidiary to facilitate sales. The firm has a global reach that is approximately evenly balanced between the US and the rest of the world. Construction skews more domestic, while the other divisions are more geographically diversified. An independent network of over 150 dealers operates approximately 2,800 facilities, giving Caterpillar reach into about 190 countries for sales and support services.
81GF Score
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