Question 1

What is Caterpillar's P/B ratio?

Accepted Answer

Caterpillar (CAT) P/B ratio is 22.2× as of July 22, 2026. The ratio is calculated by dividing market capitalisation by book value of equity, using USD-normalised financials (IAS 21 exchange-rate translation for non-USD reporters).

Question 2

How is the P/B ratio calculated?

Accepted Answer

P/B = Market Capitalisation ÷ Book Value of Equity (most recent quarterly shareholders' equity), or equivalently Share Price ÷ Book Value Per Share. 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/B ratio?

Accepted Answer

The price-to-book (P/B) ratio compares a company's market capitalisation to its book value of equity (total shareholders' equity) on the most recent quarterly balance sheet. It is calculated as market cap ÷ book value of equity (equivalent to share price ÷ book value per share). A P/B below 1× implies the market values the business below its accounting net worth; values well above 1× reflect intangible assets, brand value, or a high return on equity.

Question 4

What is a good P/B ratio for Caterpillar?

Accepted Answer

A "good" P/B depends on the business model. Banks, insurers, and other capital-heavy financials typically trade near 1×; asset-light technology and consumer-brand companies can sustainably trade at 5×+ because much of their value is intangible. P/B is most informative when paired with return on equity (ROE). For Caterpillar specifically, the relevant sector benchmark is the current sector median of 4.6×.

Question 5

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

Accepted Answer

Caterpillar's P/B ratio of 22.2× is above its own 5-year average of 8.6× and above the sector median of 4.6×. That places the current reading at the 97th 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/B ratio range?

Accepted Answer

In the available daily series, Caterpillar (CAT) P/B ratio has ranged from a low of 2.1× in 2002 to a high of 26.6× in 2026. The 5-year average is 8.6× and the 5-year median is 7.7×.

Question 7

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

Accepted Answer

Caterpillar (CAT) P/B ratio at the end of 2025 was 12.5×. Annual values reflect the multiple on the last trading day of each calendar year, using the trailing twelve-month book value figure available at that date.

Question 8

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

Accepted Answer

Valuation multiples move with two inputs: the numerator (market capitalisation, which tracks the share price) and the denominator (book value). 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	$267B	$21.3B	12.5×	+3.5×	Dec 31, 2025
2024	$176B	$19.5B	9.0×	+1.4×	Dec 31, 2024
2023	$149B	$19.5B	7.7×	-0.2×	Dec 31, 2023
2022	$124B	$15.9B	7.8×	+1.1×	Dec 31, 2022
2021	$111B	$16.5B	6.8×	+0.3×	Dec 31, 2021
2020	$99.1B	$15.3B	6.5×	+0.9×	Dec 31, 2020
2019	$81.3B	$14.6B	5.6×	+0.3×	Dec 31, 2019
2018	$73.9B	$14B	5.3×	-1.6×	Dec 31, 2018
2017	$94B	$13.7B	6.9×	+2.7×	Dec 31, 2017
2016	$54.3B	$13.1B	4.1×	+1.5×	Dec 31, 2016
2015	$39.6B	$14.8B	2.7×	-0.6×	Dec 31, 2015
2014	$55.4B	$16.7B	3.3×	+0.5×	Dec 31, 2014
2013	$57.8B	$20.8B	2.8×	-0.6×	Dec 31, 2013
2012	$58.6B	$17.5B	3.3×	-1.2×	Dec 31, 2012
2011	$58.6B	$12.9B	4.6×	-1.0×	Dec 31, 2011
2010	$59.7B	$10.8B	5.5×	+1.4×	Dec 31, 2010
2009	$35.6B	$8.74B	4.1×	-0.3×	Dec 31, 2009
2008	$26.9B	$6.09B	4.4×	-0.6×	Dec 31, 2008
2007	$44.8B	$8.88B	5.0×	-0.7×	Dec 31, 2007
2006	$39.5B	$6.86B	5.8×	+1.2×	Dec 31, 2006
2005	$38.8B	$8.43B	4.6×	+2.4×	Dec 31, 2005
2004	$16.7B	$7.47B	2.2×	-2.4×	Dec 31, 2004
2003	$28.4B	$6.08B	4.7×	+1.8×	Dec 31, 2003
2002	$15.7B	$5.47B	2.9×	—	Dec 31, 2002


Thomson Reuters (TRI)	3.3×
Snap-on (SNA)	3.2×
Ingersoll Rand (IR)	3.1×
PACCAR (PCAR)	3.1×
Franklin Electric Co. (FELE)	3.0×
Huntington Ingalls Industries (HII)	2.9×
Brady (BRC)	2.9×
Delta Air Lines (DAL)	2.8×
United Airlines Holdings (UAL)	2.7×
Xylem (XYL)	2.6×
FedEx (FDX)	2.6×
Upwork (UPWK)	2.5×
McGrath RentCorp (MGRC)	2.2×
Tennant (TNC)	2.2×
Serve Robotics (SERV)	2.0×
AGCO (AGCO)	2.0×
Textron (TXT)	1.9×
Andersons (ANDE)	1.9×
Archer Aviation (ACHR)	1.9×
Alamo Group (ALG)	1.7×
Matthews International (MATW)	1.6×
Redwire (RDW)	1.5×
Amentum Holdings (AMTM)	1.4×
ABM Industries (ABM)	1.4×
Stanley Black & Decker (SWK)	1.2×

P/B Ratio for Caterpillar (CAT) 2002-2026

P/B Ratio daily chart for Caterpillar (CAT)

Historical P/B Ratio for Caterpillar (CAT) from 2002 to 2025

About P/B Ratio at Caterpillar (CAT)

Caterpillar P/B Ratio by Year

Caterpillar P/B Ratio 2025: 12.5×

Caterpillar P/B Ratio 2024: 9.0×

Caterpillar P/B Ratio 2023: 7.7×

Caterpillar P/B Ratio 2022: 7.8×

Caterpillar P/B Ratio 2021: 6.8×

Sector peers by P/B Ratio — chart

Sector peers by P/B Ratio — table

Frequently asked questions

Caterpillar (CAT) Key Financials