Caterpillar (XSWX:CAT) Forward PE Ratio Explanation
The Forward PE Ratio of a company is often used to compare current earnings to estimated future earnings, as well as gaining a clearer picture of what earnings will look like without charges and other accounting adjustments. If earnings are expected to grow in the future, the Forward PE Ratio will be lower than the current PE Ratio. This measure is also used to compare one company to another with a forward-looking focus.
Trailing PE Ratio relies on what is already done. It uses the current share price and divides by the total EPS (Basic) over the past 12 months. PE Ratio can be affected by Non Operating Income such as the sale of part of businesses. This may increase for the current year or quarter dramatically. But it cannot be repeated over and over. Therefore PE Ratio without NRI is a more accurate indication of valuation than PE Ratio .
Caterpillar Forward PE Ratio Related Terms
Caterpillar Forward PE Ratio Historical Data
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The historical data trend for Caterpillar's Forward PE Ratio 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.
Caterpillar Forward PE Ratio Chart
Caterpillar Annual Data
Trend
2015-12
2016-12
2017-12
2018-12
2019-12
2020-12
2021-12
2022-12
2023-12
Forward PE Ratio
19.84
28.01
20.41
9.39
13.35
22.42
16.13
15.38
12.61
Caterpillar Quarterly Data
2015-12
2016-03
2016-06
2016-09
2016-12
2017-03
2017-06
2017-09
2017-12
2018-03
2018-06
2018-09
2018-12
2019-03
2019-06
2019-09
2019-12
2020-03
2020-06
2020-09
2020-12
2021-03
2021-06
2021-09
2021-12
2022-03
2022-06
2022-09
2022-12
2023-03
2023-06
2023-09
2023-12
2024-03
2024-06
2024-09
2026-03
Forward PE Ratio
19.84
19.46
20.20
21.28
28.01
28.41
28.49
19.23
20.41
16.50
12.42
11.82
9.39
10.91
10.62
10.03
13.35
11.36
25.32
20.20
22.42
27.47
24.57
16.16
16.13
16.03
16.37
12.72
15.38
15.70
14.08
11.03
12.61
16.58
13.18
13.55
31.90
XSWX:CAT vs DE, PCAR, CNH: Forward PE Ratio Comparison
For the Farm & Heavy Construction Machinery subindustry, Caterpillar's Forward PE Ratio, along with its competitors' market caps and Forward PE Ratio 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 Forward PE Ratio vs Farm & Heavy Construction Machinery Industry
For the Farm & Heavy Construction Machinery industry and Industrials sector, Caterpillar's Forward PE Ratio distribution charts can be found below:
* The bar in red indicates where Caterpillar's Forward PE Ratio falls into.
It's a measure of the price-to-earnings ratio (PE Ratio) using forecasted earnings for the calculation. While the earnings used are just an estimate and are not as reliable as current earnings data, there is still benefit in estimated P/E analysis. The forecasted earnings used in the formula can either be for the next 12 months or for the next full-year fiscal period.
Caterpillar (XSWX:CAT) has a Forward PE Ratio of 39.71 as of Jul. 05, 2026. Forward P/E ratio is the share price dividend by the expected per-share earnings in the next 12 months. View historical data on Caterpillar and its competitors. According to the industry distribution chart, Caterpillar ranks #114 out of 116 companies in the Farm & Heavy Construction Machinery industry, placing it in the top 98.3%.
Is Caterpillar's Forward PE Ratio too high?
Caterpillar's current Forward PE Ratio is 39.71. The Farm & Heavy Construction Machinery industry median Forward PE Ratio is 13.50. Caterpillar's value of 39.71 is 194.1% above this industry median. Based on the distribution chart, Caterpillar ranks #114 out of 116 companies in the Farm & Heavy Construction Machinery industry, which is in the bottom quartile relative to peers. Overall, Caterpillar has a GF Score™ of 81/100, reflecting its overall financial health beyond just this single metric.
How does Caterpillar's Forward PE Ratio compare to DE and PCAR?
According to the Farm & Heavy Construction Machinery industry distribution chart, Caterpillar ranks #114 out of 116 companies for Forward PE Ratio. This places Caterpillar in the lower half of its industry. The industry median Forward PE Ratio is 13.50. Caterpillar's value of 39.71 is 194.1% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Forward PE Ratio for a Farm & Heavy Construction Machinery company?
The median Forward PE Ratio among Farm & Heavy Construction Machinery companies is 13.50, based on 116 companies in the industry. Companies in the top quartile (top 25%) have a Forward PE Ratio significantly above this median, while those in the bottom quartile fall well below. However, Forward PE Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Caterpillar's current Forward PE Ratio of 39.71 is 194.1% 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 Forward PE Ratio mean?
A high Forward PE Ratio can signal that a stock is expensive relative to its fundamentals. Forward P/E ratio is the share price dividend by the expected per-share earnings in the next 12 months. View historical data on Caterpillar and its competitors. For the Farm & Heavy Construction Machinery industry, the median Forward PE Ratio is 13.50 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Caterpillar's current Forward PE Ratio is 39.71. 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 Forward PE Ratio of 39.71. The stock's GF Value™ is CHF341.22, compared to a current price of CHF784.40 — trading 129.9% above its estimated fair value. The current Forward PE Ratio is 39.71 and 194.1% above the Farm & Heavy Construction Machinery industry median of 13.50. 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 Forward PE Ratio calculated?
Forward PE Ratio is calculated from a company's financial statements. For Caterpillar (XSWX:CAT), the current Forward PE Ratio is 39.71 as of Jul. 05, 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 CHF784.40 is trading 129.9% above its estimated GF Value™ of CHF341.22.
Key valuation signals for XSWX:CAT:
Forward PE Ratio: 39.71
GF Value™: CHF341.22 vs. price of CHF784.40 (129.9% above fair value)
Industry Position: 194.1% above the Farm & Heavy Construction Machinery median (#114 of 116)
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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Forward PE Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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