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 15.67. Caterpillar's 5-Year EBITDA growth rate is 18.30%. Therefore, Caterpillar's PEG Ratio for today is 0.86.
* 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: 0.53 Med: 1.35 Max: 14.28
Current: 0.86
During the past 13 years, Caterpillar's highest PEG Ratio was 14.28. The lowest was 0.53. And the median was 1.35.
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
Dec12
Dec13
Dec14
Dec15
Dec16
Dec17
Dec18
Dec19
Dec20
Dec21
PEG Ratio
-
13.03
0.80
1.73
1.02
Caterpillar Quarterly Data
Sep17
Dec17
Mar18
Jun18
Sep18
Dec18
Mar19
Jun19
Sep19
Dec19
Mar20
Jun20
Sep20
Dec20
Mar21
Jun21
Sep21
Dec21
Mar22
Jun22
PEG Ratio
1.46
1.15
1.02
1.32
1.37
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
* 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 is an iconic 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 over 2,000 branches maintained by 168 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.
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