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CaterpillarXSWX:CAT +0.58%81 3-Year Share Buyback Ratio is 3.40 as of Mar. 2026, which is 162% above its 10-year median of 1.30. GuruFocus rates XSWX:CAT with a GF Score™ of 81/100 and a GF Value™ of CHF346.10. The stock has 1 warning sign investors should review. Among 114 Farm & Heavy Construction Machinery companies, Caterpillar ranks better than 92.11% on this metric.
Shares Outstanding (EOP) are shares that have been authorized, issued, and purchased by investors and are held by them.
3-Year Share Buyback Ratio measures the average annual proportion of a company's outstanding shares repurchased over the past three years. It is calculated as the annualized percentage change in shares outstanding from three years ago to the current year. A positive ratio may indicate share buybacks over the period, while a zero or negative ratio may reflect no repurchases or potential share issuance. Caterpillar's current 3-Year Share Buyback Ratio was 3.40%.
The historical rank and industry rank for Caterpillar's 3-Year Share Buyback Ratio or its related term are showing as below:
XSWX:CAT'
s 3-Year Share Buyback Ratio Range Over the Past 10 Years
Min: -2.5 Med: 1.3 Max: 3.8
Current: 3.4
During the past 13 years, Caterpillar's highest 3-Year Share Buyback Ratio was 3.80%. The lowest was -2.50%. And the median was 1.30%.
XSWX:CAT's 3-Year Share Buyback Ratio is ranked better than 92.11% of 114
companies
in the Farm & Heavy Construction Machinery industry
Industry Median: -0.2
vs XSWX:CAT: 3.40
Caterpillar (XSWX:CAT) 3-Year Share Buyback Ratio Explanation
A negative number means the company might be issuing new shares. A positive number indicates that the company is buying back shares.
Be Aware
Investors usually like share buybacks. But as pointed by Warren Buffett, only if a company buys back shares at the prices below the stock's intrinsic value, it rewards remaining shareholders. If a company buys its overvalued stocks back, it destroys shareholder value.
Caterpillar 3-Year Share Buyback Ratio Related Terms
XSWX:CAT vs DE, PCAR, CNH: 3-Year Share Buyback Ratio Comparison
For the Farm & Heavy Construction Machinery subindustry, Caterpillar's 3-Year Share Buyback Ratio, along with its competitors' market caps and 3-Year Share Buyback 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 3-Year Share Buyback Ratio vs Farm & Heavy Construction Machinery Industry
For the Farm & Heavy Construction Machinery industry and Industrials sector, Caterpillar's 3-Year Share Buyback Ratio distribution charts can be found below:
* The bar in red indicates where Caterpillar's 3-Year Share Buyback Ratio falls into.
Caterpillar 3-Year Share Buyback Ratio Calculation
This is the annualized percentage change in shares outstanding from three years ago to the current year. The annualized percentage change is calculated with expontential compound based on the latest four years of annual data on Shares Outstanding (EOP).
Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the average dividends per share growth rate.
What does a 3-Year Share Buyback Ratio of 3.40 mean?
Caterpillar (XSWX:CAT) has a 3-Year Share Buyback Ratio of 3.40 as of Mar. 2026. The 3-Year Share Buyback Ratio measures the average annual proportion of a company's outstanding shares repurchased over the past three years. It is calculated as the annualized percentage change in shares outstanding from three years ago to the current year. View historical data for Caterpillar and its competitors. This is 162% above median its historical median of 1.30. According to the industry distribution chart, Caterpillar ranks #9 out of 114 companies in the Farm & Heavy Construction Machinery industry, placing it in the top 7.9%.
Is Caterpillar's 3-Year Share Buyback Ratio too high?
Caterpillar's current 3-Year Share Buyback Ratio of 3.40 is 162% above median its 10-year median of 1.30. Based on the distribution chart, Caterpillar ranks #9 out of 114 companies in the Farm & Heavy Construction Machinery industry, which is in the top quartile — a strong position 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 3-Year Share Buyback Ratio compare to DE and PCAR?
According to the Farm & Heavy Construction Machinery industry distribution chart, Caterpillar ranks #9 out of 114 companies for 3-Year Share Buyback Ratio. This places Caterpillar in the top 8% of its industry — outperforming the majority of peers. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year Share Buyback Ratio for a Farm & Heavy Construction Machinery company?
A good 3-Year Share Buyback Ratio depends on the Farm & Heavy Construction Machinery industry context. However, 3-Year Share Buyback Ratio 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 3-Year Share Buyback Ratio mean?
A high 3-Year Share Buyback Ratio can signal that a stock is expensive relative to its fundamentals. The 3-Year Share Buyback Ratio measures the average annual proportion of a company's outstanding shares repurchased over the past three years. It is calculated as the annualized percentage change in shares outstanding from three years ago to the current year. View historical data for Caterpillar and its competitors. Caterpillar's current 3-Year Share Buyback Ratio is 3.40, which is 162% above median its own 10-year median of 1.30. 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 3-Year Share Buyback Ratio of 3.40. The stock's GF Value™ is CHF346.10, compared to a current price of CHF733.30 — trading 111.9% above its estimated fair value. The current 3-Year Share Buyback Ratio is 3.40, which is 162% above median its 10-year median of 1.30. Caterpillar's overall GF Score™ is 81/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year Share Buyback Ratio calculated?
3-Year Share Buyback Ratio is calculated from a company's financial statements. For Caterpillar (XSWX:CAT), the current 3-Year Share Buyback Ratio is 3.40 as of Mar. 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 CHF733.30 is trading 111.9% above its estimated GF Value™ of CHF346.10.
Key valuation signals for XSWX:CAT:
3-Year Share Buyback Ratio: 3.40 (162% above median its 10-year median of 1.30)
GF Value™: CHF346.10 vs. price of CHF733.30 (111.9% above fair value)
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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