Should you buy Caterpillar stock? (NYSE:CAT). Let's see how it does in our automated value investing analysis system.
Based on historical returns, we believe that Caterpillar can grow its free cash at a rate of about 4%. That's positive!
(Caterpillar stock price per share)
||CAT Fair Price
(based on intrinsic value)
||CAT Safety Price (based on a variable margin of safety)||$98.10|
||PE Ratio versus Sector||704% higher than other Industrial Goods stocks|
|PE Ratio versus Industry||499% higher than other Farm & Construction Equipment stocks|
|Free Cash Flow Jitter||121%|
We believe that Caterpillar may be worth examining further. It's making money, which is a very positive sign. Is it on sale?
Caterpillar looks overpriced right now. If you're looking for a bargain in the stock market, you should probably look elsewhere for a great deal. This might still be a great stock to own—but it's not on sale right now.
Does Caterpillar have a coherent story? Does it have a plan to continue to make money? Is it worth your time? Only you can decide where to go from here. Our investment guide helps you ask the right questions, including how to buy stocks. Use these research links for more information.
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