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Caterpillar (Caterpillar) PEG Ratio

: 1.66 (As of Today)
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PE Ratio without NRI / 5-Year EBITDA Growth Rate*

PEG Ratio is defined as the PE Ratio without NRI divided by the growth ratio. The growth rate we use is the 5-Year EBITDA growth rate. As of today, Caterpillar's PE Ratio without NRI is 16.89. Caterpillar's 5-Year EBITDA growth rate is 10.20%. Therefore, Caterpillar's PEG Ratio for today is 1.66.

* The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.


The historical rank and industry rank for Caterpillar's PEG Ratio or its related term are showing as below:

CAT' s PEG Ratio Range Over the Past 10 Years
Min: 0.5   Med: 1.35   Max: 12.91
Current: 1.66


During the past 13 years, Caterpillar's highest PEG Ratio was 12.91. The lowest was 0.50. And the median was 1.35.


CAT's PEG Ratio is ranked worse than
69.79% of 96 companies
in the Farm & Heavy Construction Machinery industry
Industry Median: 0.85 vs CAT: 1.66

Peter Lynch thinks a company with a P/E ratio equal to its growth rate is fairly valued.


Caterpillar PEG Ratio Historical Data

The historical data trend for Caterpillar's PEG 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.

* Premium members only.

Caterpillar Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
PEG Ratio
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.75 1.44 1.12 3.80 1.39

Caterpillar Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
PEG Ratio Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.80 3.43 2.47 1.84 1.39

Competitive Comparison

For the Farm & Heavy Construction Machinery subindustry, Caterpillar's PEG Ratio, along with its competitors' market caps and PEG 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 PEG Ratio Distribution

For the Farm & Heavy Construction Machinery industry and Industrials sector, Caterpillar's PEG Ratio distribution charts can be found below:

* The bar in red indicates where Caterpillar's PEG Ratio falls into.



Caterpillar PEG Ratio Calculation

PEG Ratio is defined as the PE Ratio without NRI divided by the growth ratio. The ratio we use is the 5-Year EBITDA growth rate.

Caterpillar's PEG Ratio for today is calculated as

PEG Ratio=PE Ratio without NRI/5-Year EBITDA Growth Rate*
=16.893917963225/10.20
=1.66

* 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.

* Note: The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.


Caterpillar  (NYSE:CAT) PEG Ratio Explanation

To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the P/E ratio divided by the growth ratio. He thinks a company with a P/E ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a P/E of 20, instead of a company growing 10% a year with a P/E of 10.


Caterpillar PEG Ratio Related Terms

Thank you for viewing the detailed overview of Caterpillar's PEG Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


Caterpillar (Caterpillar) Business Description

Address
5205 N. O'Connor Boulevard, Suite 100, Irving, TX, USA, 75039
Caterpillar is the premier manufacturer of heavy equipment, power solutions, and locomotives. It is currently the world's largest manufacturer of heavy equipment with over 13% market share in 2021. The company is divided into four reportable segments: construction industries, resource industries, energy and transportation, and Caterpillar Financial Services. Its products are available through a dealer network that covers the globe with about 2,700 branches maintained by 160 dealers. Caterpillar Financial Services provides retail financing for machinery and engines to its customers, in addition to wholesale financing for dealers, which increases the likelihood of Caterpillar product sales.
Executives
Anthony D. Fassino officer: Group President 510 LAKE COOK ROAD, SUITE 100, DEERFIELD IL 60015
Cheryl H Johnson officer: Chief Human Resources Officer 40 WESTMINSTER STREET, PROVIDENCE RI 02903
Joseph E Creed officer: Interim CFO 510 LAKE COOK ROAD, SUITE 100, DEERFIELD IL 60015
Denise C Johnson officer: Group President C/O CATERPILLAR, INCORPORATED, 901 WEST WASHINGTON, CV41110, EAST PEORIA IL 61630
Lange Bob De officer: Group President 510 LAKE COOK ROAD, SUITE 100, DEERFIELD IL 60015
Fish James C Jr director 800 CAPITOL STREET 3000, HOUSTON TX 77002
Judith Fran Marks director C/O HUBBELL INCORPORATED, 40 WATERVIEW DRIVE, SHELTON CT 06484
David Maclennan director 14701 CHARLSON ROAD, EDEN PRAIRIE MN 55347
Suzette M Long officer: Int. Executive Vice President 510 LAKE COOK ROAD, SUITE 100, DEERFILED IL 60015
Daniel M Dickinson director THAYER CAPITAL PARTNERS, 1455 PENNSYLVANIA AVENUE NW, STE 350, WASHINGTON DC 20004
William E Schaupp officer: Chief Accounting Officer PPG INDUSTRIES, INC., ONE PPG PLACE, PITTSBURGH PA 15272
Gary Michael Marvel officer: Chief Accounting Officer 510 LAKE COOK ROAD, SUITE 100, DEERFIELD IL 60015
Gerald Johnson director 300 RENAISSANCE CENTER, M/C: 482-C23-A68, DETROIT MI 48265
Ramin Younessi officer: Group President 510 LAKE COOK ROAD, SUITE 100, DEERFIELD IL 60015
William P Ainsworth officer: Group President 510 LAKE COOK ROAD, SUITE 100, DEERFIELD X1 60015

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