Caterpillar Inc (CAT)

Current price: $647.39

These defaults work well for most companies. Only adjust them if you have a specific view on this business's risk profile or long-term growth prospects.

Discount Rate

Your required annual return on investmentTerminal Growth Rate

Long-run growth rate beyond projection period (≤ GDP growth)

Graham Number

√(22.5 × EPS × Book Value per Share)

$139.25

78% downside

Earnings Power Value

Normalized after-tax earnings ÷ required return (zero-growth)

$81.97

87% downside

DCF Fair Value

Projected free cash flow discounted to present value + terminal value

$149.22

77% downside

P/E Fair Value

Earnings per share × target P/E multiple

$282.15

56% downside

Target P/E Multiple

Long-run historical average: 34×

Valuation estimates are models, not investment advice. They are highly sensitive to the assumptions chosen and carry significant uncertainty. Past fundamentals do not guarantee future performance.