Caterpillar (MIL:1CAT) Margin of Safety % (DCF Earnings Based): -89.12% (As of Jun. 24, 2026)


MIL:1CAT Caterpillar Inc MIL:1CAT
56 GF Score
Price €863.20
GF Value €352.01
Valuation Significantly Overvalued
! 6 Warning Signs
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What is Caterpillar Margin of Safety % (DCF Earnings Based)?

Caterpillar MIL:1CAT -2.79% 56 Margin of Safety % (DCF Earnings Based) is -89.12% as of Jun. 24, 2026. GuruFocus rates MIL:1CAT with a GF Score™ of 56/100 and a GF Value™ of €352.01 (Significantly Overvalued). The stock has 6 warning signs investors should review.

Margin of Safety % (DCF Earnings Based) = (Intrinsic Value: DCF (Earnings Based) - Current Price) / Intrinsic Value: DCF (Earnings Based).

Note: Discounted Earnings model is only suitable for predictable companies (Business Predictability Rank higher than 1-Star). If the company's Predictability Rank is 1-Star or Not Rated, result may not be accurate due to the low predictability of business and the data will not be stored into our database.

As of today (2026-06-24), Caterpillar's Predictability Rank is 3-Stars. Caterpillar's intrinsic value calculated from the Discounted Earnings model is €456.44 and current share price is €863.20. Consequently,

Caterpillar's Margin of Safety % (DCF Earnings Based) using Discounted Earnings model is -89.12%.

MIL:1CAT vs DE, PCAR, CNH: Margin of Safety % (DCF Earnings Based) Comparison

For the Farm & Heavy Construction Machinery subindustry, Caterpillar's Margin of Safety % (DCF Earnings Based), along with its competitors' market caps and Margin of Safety % (DCF Earnings Based) 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 Margin of Safety % (DCF Earnings Based) vs Farm & Heavy Construction Machinery Industry

For the Farm & Heavy Construction Machinery industry and Industrials sector, Caterpillar's Margin of Safety % (DCF Earnings Based) distribution charts can be found below:

* The bar in red indicates where Caterpillar's Margin of Safety % (DCF Earnings Based) falls into.


MIL:1CAT
56GF Score
Caterpillar Inc MIL:1CAT
Margin of Safety % (DCF Earnings Based) is just one metric. See GF Score™, valuation, warning signs, and more.
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Caterpillar Margin of Safety % (DCF Earnings Based) Calculation

Caterpillar's Margin of Safety % (DCF Earnings Based) for today is calculated as

Margin of Safety % (DCF Earnings Based)=(Intrinsic Value: DCF (Earnings Based)-Current Price)/Intrinsic Value: DCF (Earnings Based)
=(456.44-863.20)/456.44
=-89.12 %

* 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.

The intrinsic value is calculated from the Discounted Earnings model with default parameters. The calculation method is the same as Discounted Cash Flow model except earnings are used in the calculation instead of free cash flow.

What does a Margin of Safety % (DCF Earnings Based) of -89.12% mean?
Caterpillar (MIL:1CAT) has a Margin of Safety % (DCF Earnings Based) of -89.12% as of Jun. 24, 2026. Margin of Safety % (DCF Earnings Based) is the percent difference between the current price and the intrinsic DCF Earnings price. View historical data on Caterpillar.
Is Caterpillar's Margin of Safety % (DCF Earnings Based) too high?
Caterpillar's current Margin of Safety % (DCF Earnings Based) is -89.12%. Overall, Caterpillar has a GF Score™ of 56/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Caterpillar's Margin of Safety % (DCF Earnings Based) compare to DE and PCAR?
Caterpillar's Margin of Safety % (DCF Earnings Based) of -89.12% can be compared against companies in the Farm & Heavy Construction Machinery industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Margin of Safety % (DCF Earnings Based) for a Farm & Heavy Construction Machinery company?
A good Margin of Safety % (DCF Earnings Based) depends on the Farm & Heavy Construction Machinery industry context. However, Margin of Safety % (DCF Earnings Based) should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Margin of Safety % (DCF Earnings Based) mean?
A high Margin of Safety % (DCF Earnings Based) can signal that a stock is expensive relative to its fundamentals. Margin of Safety % (DCF Earnings Based) is the percent difference between the current price and the intrinsic DCF Earnings price. View historical data on Caterpillar. Caterpillar's current Margin of Safety % (DCF Earnings Based) is -89.12%. 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?
Based on GuruFocus' analysis, Caterpillar (MIL:1CAT) is currently considered Significantly Overvalued. The stock's GF Value™ is €352.01, compared to a current price of €863.20 — trading 145.2% above its estimated fair value. The current Margin of Safety % (DCF Earnings Based) is -89.12%. Caterpillar's overall GF Score™ is 56/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Margin of Safety % (DCF Earnings Based) calculated?
Margin of Safety % (DCF Earnings Based) is calculated from a company's financial statements. For Caterpillar (MIL:1CAT), the current Margin of Safety % (DCF Earnings Based) is -89.12% as of Jun. 24, 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 (MIL:1CAT) Overvalued in 2026?

Based on GuruFocus' analysis, Caterpillar stock appears to be overvalued. The current stock price of €863.20 is trading 145.2% above its estimated GF Value™ of €352.01. GuruFocus considers Caterpillar to be Significantly Overvalued.

Key valuation signals for MIL:1CAT:

  • Margin of Safety % (DCF Earnings Based): -89.12%
  • GF Value™: €352.01 vs. price of €863.20 (145.2% above fair value)
  • GF Score™: 56/100 with 6 warning signs

No single metric tells the full story. See the MIL:1CAT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Caterpillar Business Description

Address 5205 N. O\'Connor Boulevard, Suite 100, Irving, TX, USA, 75039
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.
56GF Score

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Margin of Safety % (DCF Earnings Based) is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€863.20
Price
€352.01
GF Value