Question 1

What is Caterpillar's P/FCF ratio?

Accepted Answer

Caterpillar (CAT) P/FCF ratio is 36.8× as of June 5, 2026. The ratio is calculated by dividing market capitalisation by trailing twelve-month free cash flow, using USD-normalised financials (IAS 21 exchange-rate translation for non-USD reporters).

Question 2

How is the P/FCF ratio calculated?

Accepted Answer

P/FCF = Market Capitalisation ÷ Trailing Twelve-Month (TTM) Free Cash Flow, where Free Cash Flow = Operating Cash Flow − Capital Expenditures. All inputs are sourced from audited GAAP/IFRS filings and translated to USD using period-end exchange rates so the multiple is comparable across companies and currencies.

Question 3

What is the P/FCF ratio?

Accepted Answer

The price-to-free-cash-flow (P/FCF) ratio compares a company's market capitalisation to its trailing twelve-month (TTM) free cash flow. It is calculated as market cap ÷ TTM free cash flow, where free cash flow = operating cash flow − capital expenditures. Because FCF cannot be inflated by non-cash accounting items, P/FCF is often considered a cleaner measure of "earnings-power valuation" than P/E — especially for capital-intensive businesses where depreciation diverges from real cash outflows.

Question 4

What is a good P/FCF ratio for Caterpillar?

Accepted Answer

Mature companies that consistently convert profit into cash often trade at 15–25× P/FCF; capital-intensive businesses with lumpy capex typically trade lower. Compare against sector peers and against the company's own multi-year average — single-year P/FCF can be distorted by working-capital swings. For Caterpillar specifically, the relevant sector benchmark is the current sector median of 24.3×.

Question 5

Is Caterpillar's P/FCF ratio high or low?

Accepted Answer

Caterpillar's P/FCF ratio of 36.8× is above its own 5-year average of 22.2× and above the sector median of 24.3×. That places the current reading at the 95th percentile of its 10-year history. A higher multiple usually reflects stronger expected growth, lower perceived risk, or higher returns on capital; a lower multiple reflects the opposite.

Question 6

What is Caterpillar's historical P/FCF ratio range?

Accepted Answer

In the available daily series, Caterpillar (CAT) P/FCF ratio has ranged from a low of 5.5× in 2002 to a high of 944.3× in 2001. The 5-year average is 22.2× and the 5-year median is 20.5×.

Question 7

What was Caterpillar's P/FCF ratio in 2025?

Accepted Answer

Caterpillar (CAT) P/FCF ratio at the end of 2025 was 26.0×. Annual values reflect the multiple on the last trading day of each calendar year, using the trailing twelve-month free cash flow figure available at that date.

Question 8

Why does Caterpillar's P/FCF ratio change over time?

Accepted Answer

Valuation multiples move with two inputs: the numerator (market capitalisation, which tracks the share price) and the denominator (free cash flow). Share-price changes — driven by interest rates, earnings expectations, risk appetite, and broader market sentiment — typically dominate short-term moves, while changes in the underlying fundamental drive the longer-term trend. As a result, the ratio can rise during stock-price rallies even if the business itself has not become more valuable, and fall during sell-offs even when fundamentals are improving.


2025	$267.24B	$10.27B	26.0×	+6.1×	Dec 31, 2025
2024	$175.65B	$8.82B	19.9×	+4.7×	Dec 31, 2024
2023	$149.14B	$9.79B	15.2×	-8.8×	Dec 31, 2023
2022	$123.95B	$5.17B	24.0×	+0.4×	Dec 31, 2022
2021	$111.37B	$4.73B	23.6×	+0.0×	Dec 31, 2021
2020	$99.11B	$4.21B	23.5×	+4.4×	Dec 31, 2020
2019	$81.27B	$4.24B	19.2×	-1.1×	Dec 31, 2019
2018	$73.88B	$3.64B	20.3×	-7.6×	Dec 31, 2018
2017	$93.98B	$3.37B	27.9×	+7.7×	Dec 31, 2017
2016	$54.33B	$2.69B	20.2×	+8.6×	Dec 31, 2016
2015	$39.57B	$3.41B	11.6×	-0.3×	Dec 31, 2015
2014	$55.45B	$4.68B	11.9×	+1.8×	Dec 31, 2014
2013	$57.85B	$5.75B	10.1×	-474.6×	Dec 31, 2013
2012	$58.64B	$121.00M	484.6×	+465.6×	Dec 31, 2012
2011	$58.63B	$3.09B	19.0×	-5.6×	Dec 31, 2011
2010	$59.68B	$2.42B	24.6×	+15.8×	Dec 31, 2010
2009	$35.59B	$4.03B	8.8×	-25.4×	Dec 31, 2009
2008	$26.90B	$786.00M	34.2×	+25.1×	Dec 31, 2008
2007	$44.81B	$4.89B	9.2×	-3.5×	Dec 31, 2007
2006	$39.49B	$3.12B	12.6×	-43.0×	Dec 31, 2006
2005	$38.83B	$698.00M	55.6×	—	Dec 31, 2005
2004	$16.67B	−$12.72B	—	—	Dec 31, 2004
2003	$28.44B	$301.00M	94.5×	+68.0×	Dec 31, 2003
2002	$15.74B	$593.00M	26.5×	-917.7×	Dec 31, 2002
2001	$17.94B	$19.00M	944.3×	—	Dec 31, 2001


Alamo Group (ALG)	18.0×
Otis Worldwide (OTIS)	17.9×
Fortive (FTV)	17.9×
Allegion (ALLE)	17.8×
Snap-on (SNA)	17.6×
FedEx (FDX)	17.3×
Norfolk Southern (NSC)	16.9×
Gorman-Rupp (GRC)	16.2×
Automatic Data Processing (ADP)	15.8×
Paychex (PAYX)	15.6×
AGCO (AGCO)	15.4×
General Dynamics (GD)	15.3×
Carlisle Companies (CSL)	14.7×
Amentum Holdings (AMTM)	14.7×
Stanley Black & Decker (SWK)	14.4×
A. O. Smith (AOS)	14.2×
Huntington Ingalls Industries (HII)	14.1×
McGrath RentCorp (MGRC)	13.9×
Pool (POOL)	12.2×
Delta Air Lines (DAL)	11.1×
Builders FirstSource (BLDR)	10.5×
United Airlines Holdings (UAL)	9.4×
Gartner (IT)	8.8×
ABM Industries (ABM)	7.2×
Versant Media Group, Inc. Class A (VSNT)	2.7×

P/FCF Ratio for Caterpillar (CAT)

P/FCF Ratio daily chart for Caterpillar (CAT)

Historical P/FCF Ratio for Caterpillar (CAT) from 2001 to 2025

About P/FCF Ratio at Caterpillar (CAT)

Caterpillar P/FCF Ratio by Year

Caterpillar P/FCF Ratio 2025: 26.0×

Caterpillar P/FCF Ratio 2024: 19.9×

Caterpillar P/FCF Ratio 2023: 15.2×

Caterpillar P/FCF Ratio 2022: 24.0×

Caterpillar P/FCF Ratio 2021: 23.6×

Sector peers by P/FCF Ratio — chart

Sector peers by P/FCF Ratio — table

Frequently asked questions

Caterpillar (CAT) Key Financials

P/FCF Ratio daily chart for Caterpillar (CAT)

Historical P/FCF Ratio for Caterpillar (CAT) from 2001 to 2025

About P/FCF Ratio at Caterpillar (CAT)

Caterpillar P/FCF Ratio by Year

Caterpillar P/FCF Ratio 2025: 26.0×

Caterpillar P/FCF Ratio 2024: 19.9×

Caterpillar P/FCF Ratio 2023: 15.2×

Caterpillar P/FCF Ratio 2022: 24.0×

Caterpillar P/FCF Ratio 2021: 23.6×

Sector peers by P/FCF Ratio — chart

Sector peers by P/FCF Ratio — table

Frequently asked questions

+What is Caterpillar's P/FCF ratio?

+How is the P/FCF ratio calculated?

+What is the P/FCF ratio?

+What is a good P/FCF ratio for Caterpillar?

+Is Caterpillar's P/FCF ratio high or low?

+What is Caterpillar's historical P/FCF ratio range?

+What was Caterpillar's P/FCF ratio in 2025?

+Why does Caterpillar's P/FCF ratio change over time?

Caterpillar (CAT) Key Financials