Caterpillar (XSWX:CAT) GF Value Rank: 1 (As of Jul. 05, 2026) — 80% Below Median


XSWX:CAT Caterpillar Inc XSWX:CAT
81 GF Score
Price CHF784.40
GF Value CHF341.22
! 6 Warning Signs
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What is Caterpillar GF Value Rank?

Caterpillar XSWX:CAT +0.20% 81 GF Value Rank is 1 as of Jul. 05, 2026, which is 80% below its 10-year median of 5.00. GuruFocus rates XSWX:CAT with a GF Score™ of 81/100 and a GF Value™ of CHF341.22. The stock has 6 warning signs investors should review.

Caterpillar has the GF Value Rank of 1.

GF Value Rank evaluates the exclusive GuruFocus valuation and performance of a stock, rated on a scale from 1 to 10. It is determined by the price-to-GF-Value (P/GF Value) ratio, a proprietary metric calculated based on historical multiples along with an adjustment factor based on a company's past returns and growth and future estimates of the business' performance.

GuruFocus found that for valuation, we cannot simply give stocks a better GF Value rank simply because they have a lower P/GF Value ratio. Backtesting shows that over the long term, the two worst-performing groups are the most expensive group (with the highest P/GF Value ratio) and the least expensive group (with the lowest P/GF Value ratio).

We can understand why the most expensive group underperforms. We were initially puzzled by the underperformance of the least expensive group, but we realized there is a reason why some stocks are super cheap. If they look too undervalued, it is often because the businesses behind them are poor quality. The market realized this and gave them low valuations. In a way, the market is efficient.

After multiple backtesting analyses, we granted the stocks in third-cheapest percentile the highest GF Value rank, as they have performed the best over a full market cycle. Stock performance is actually not as sensitive to valuation as it is to growth and profitability. On average, the companies in the 20%-50% valuation groups have similar performances. Therefore, we should avoid the most expensive and the least expensive stocks. We can be more tolerant of valuation.

A higher score indicates a stock with a relatively low valuation and substantial potential for outperformance. Conversely, a lower score often reflects stocks that are either highly overvalued or deeply undervalued, both of which tend to underperform.

Please click GF Score to see more details on the GF Score's 5 Key Aspects of Analysis.

Caterpillar GF Value Rank Related Terms

XSWX:CAT vs DE, PCAR, CNH: GF Value Rank Comparison

For the Farm & Heavy Construction Machinery subindustry, Caterpillar's GF Value Rank, along with its competitors' market caps and GF Value Rank 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 GF Value Rank vs Farm & Heavy Construction Machinery Industry

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

* The bar in red indicates where Caterpillar's GF Value Rank falls into.


XSWX:CAT
81GF Score
Caterpillar Inc XSWX:CAT
GF Value Rank is just one metric. See GF Score™, valuation, warning signs, and more.
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Frequently Asked Questions Learn more about GF Value Rank →
What does a GF Value Rank of 1 mean?
Caterpillar (XSWX:CAT) has a GF Value Rank of 1 as of Jul. 05, 2026. GF Value Rank is given based on historical multiples along with past returns, growth and future estimates of the business' performance. View historical data on Caterpillar and its competitors. This is 80% below median its historical median of 5.00. Over the past decade, Caterpillar's GF Value Rank has ranged from 1.00 to 10.00.
Is Caterpillar's GF Value Rank too high?
Caterpillar's current GF Value Rank of 1 is 80% below median its 10-year median of 5.00. Over the past 10 years, this metric has ranged from a low of 1.00 to a high of 10.00. Overall, Caterpillar has a GF Score™ of 81/100, reflecting its overall financial health beyond just this single metric.
How does Caterpillar's GF Value Rank compare to DE and PCAR?
Caterpillar's GF Value Rank of 1 can be compared against companies in the Farm & Heavy Construction Machinery industry. Historically, Caterpillar's own GF Value Rank has ranged from 1.00 to 10.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good GF Value Rank for a Farm & Heavy Construction Machinery company?
A good GF Value Rank depends on the Farm & Heavy Construction Machinery industry context. However, GF Value Rank 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 GF Value Rank mean?
A high GF Value Rank can signal that a stock is expensive relative to its fundamentals. GF Value Rank is given based on historical multiples along with past returns, growth and future estimates of the business' performance. View historical data on Caterpillar and its competitors. Caterpillar's current GF Value Rank is 1, which is 80% below median its own 10-year median of 5.00. 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 GF Value Rank of 1. 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 GF Value Rank is 1, which is 80% below median its 10-year median of 5.00. 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 GF Value Rank calculated?
GF Value Rank is calculated from a company's financial statements. For Caterpillar (XSWX:CAT), the current GF Value Rank is 1 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:

  • GF Value Rank: 1 (80% below median its 10-year median of 5.00)
  • GF Value™: CHF341.22 vs. price of CHF784.40 (129.9% above fair value)
  • GF Score™: 81/100 with 6 warning signs

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 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.
81GF Score

Get the complete analysis for XSWX:CAT

GF Value Rank is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

CHF784.40
Price
CHF341.22
GF Value