Stock Valuation / CAT
Is Caterpillar Inc. (CAT) Overvalued? Fair Value & 5-Year Target
Caterpillar Inc. trades at $772.78 (P/E 33.27). Our reference model estimates a fair value of $531.86 at its recent average P/E of 22.90.
| Current price | $772.78 |
|---|---|
| Current EPS | $23.23 |
| Current P/E | 33.27 |
| Average P/E | 22.90 |
| Fair value (at avg P/E) | $531.86 |
| Upside to fair value | -31.2% |
| Illustrative 5-yr target (25× P/E, 15% growth) | $1,168.10 |
What drives CAT's valuation
Changing either assumption moves the target: a higher P/E multiple or faster EPS growth raises fair value, a lower multiple or slower growth lowers it. The interactive dashboard lets you edit both and re-run the model instantly.
About Caterpillar Inc.
Caterpillar Inc. provides construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives in the United States and internationally. The Construction Industries segment offers asphalt pavers, cold planers, compactors, forestry machines, material handlers, motor graders, pipelayers, road reclaimers, telehandlers, track-type tractors, and track and wheel excavators; backhoe, compact track, skid steer, track-type, and wheel loaders; and related parts and work tools. Its Resource Industries segment provides electric rope and hydraulic shovels, draglines, rotary drills, hard rock vehicles, mining trucks, wheel loaders, off-hig
Frequently asked questions
What is CAT's fair value?
At its recent average P/E of 22.90, Caterpillar Inc. (CAT) has a reference fair value of about $531.86, which is -31.2% versus the current price of $772.78.
Is Caterpillar Inc. (CAT) overvalued or undervalued?
Based on the average-P/E reference model, Caterpillar Inc. looks overvalued relative to fair value by roughly +31.2%. This is a model output, not investment advice — change the P/E and growth assumptions in the dashboard for your own view.
What is a 5-year price target for CAT?
Under an illustrative model of 25× P/E and 15% annual EPS growth, the implied 5-year target is $1,168.10. Adjust both inputs on the interactive page to match your assumptions.
Open the interactive CAT valuation dashboard →
Figures are for informational purposes only and are not investment advice. Data as of 2026-10-14.