Question 1

What is Caterpillar's P/E ratio?

Accepted Answer

Caterpillar (CAT) P/E ratio is 44.0× as of July 22, 2026. The ratio is calculated by dividing market capitalisation by trailing twelve-month earnings (net income), using USD-normalised financials (IAS 21 exchange-rate translation for non-USD reporters).

Question 2

How is the P/E ratio calculated?

Accepted Answer

P/E = Share Price ÷ Trailing Twelve-Month (TTM) Diluted EPS, or equivalently Market Capitalisation ÷ TTM Net Income. 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/E ratio?

Accepted Answer

The price-to-earnings (P/E) ratio, also called the earnings multiple, measures how much investors pay per dollar of a company's trailing twelve-month (TTM) earnings. It is calculated as share price ÷ TTM diluted EPS (equivalent to market capitalisation ÷ TTM net income). A higher P/E implies the market is pricing in stronger future earnings growth or lower risk; a lower P/E can signal slower expected growth, higher risk, or potential undervaluation.

Question 4

What is a good P/E ratio for Caterpillar?

Accepted Answer

There is no universal "good" P/E. As a rule of thumb, the S&P 500 has historically averaged a P/E in the mid-to-high teens; mature, slow-growth businesses commonly trade in the 10–18× range, while high-growth or asset-light companies often trade at 25–50×+. What matters is the comparison to sector peers and to the company's own historical range. For Caterpillar specifically, the relevant sector benchmark is the current sector median of 27.8×.

Question 5

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

Accepted Answer

Caterpillar's P/E ratio of 44.0× is above its own 5-year average of 18.9× and above the sector median of 27.8×. That places the current reading at the 96th 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/E ratio range?

Accepted Answer

In the available daily series, Caterpillar (CAT) P/E ratio has ranged from a low of 6.7× in 2009 to a high of 598.3× in 2017. The 5-year average is 18.9× and the 5-year median is 16.9×.

Question 7

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

Accepted Answer

Caterpillar (CAT) P/E ratio at the end of 2025 was 30.1×. Annual values reflect the multiple on the last trading day of each calendar year, using the trailing twelve-month earnings figure available at that date.

Question 8

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

Accepted Answer

Valuation multiples move with two inputs: the numerator (market capitalisation, which tracks the share price) and the denominator (earnings). 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	$8.87B	30.1×	+13.8×	Dec 31, 2025
2024	$176B	$10.8B	16.3×	+1.8×	Dec 31, 2024
2023	$149B	$10.3B	14.4×	-4.1×	Dec 31, 2023
2022	$124B	$6.71B	18.5×	+1.3×	Dec 31, 2022
2021	$111B	$6.49B	17.2×	-15.9×	Dec 31, 2021
2020	$99.1B	$3B	33.1×	+19.7×	Dec 31, 2020
2019	$81.3B	$6.09B	13.3×	+1.3×	Dec 31, 2019
2018	$73.9B	$6.15B	12.0×	-112.6×	Dec 31, 2018
2017	$94B	$754M	124.6×	—	Dec 31, 2017
2016	$54.3B	-$67M	—	—	Dec 31, 2016
2015	$39.6B	$2.52B	15.7×	+0.7×	Dec 31, 2015
2014	$55.4B	$3.7B	15.0×	-0.3×	Dec 31, 2014
2013	$57.8B	$3.79B	15.3×	+4.9×	Dec 31, 2013
2012	$58.6B	$5.68B	10.3×	-1.6×	Dec 31, 2012
2011	$58.6B	$4.93B	11.9×	-10.2×	Dec 31, 2011
2010	$59.7B	$2.7B	22.1×	-17.7×	Dec 31, 2010
2009	$35.6B	$895M	39.8×	+32.2×	Dec 31, 2009
2008	$26.9B	$3.56B	7.6×	-5.1×	Dec 31, 2008
2007	$44.8B	$3.54B	12.7×	+1.5×	Dec 31, 2007
2006	$39.5B	$3.54B	11.2×	-2.4×	Dec 31, 2006
2005	$38.8B	$2.85B	13.6×	+5.4×	Dec 31, 2005
2004	$16.7B	$2.04B	8.2×	-17.7×	Dec 31, 2004
2003	$28.4B	$1.1B	25.9×	+6.2×	Dec 31, 2003
2002	$15.7B	$798M	19.7×	—	Dec 31, 2002


Pentair (PNR)	21.1×
Lennox International (LII)	20.6×
Copart (CPRT)	20.4×
Union Pacific (UNP)	19.9×
Allegion (ALLE)	19.7×
Alamo Group (ALG)	19.6×
Andersons (ANDE)	19.0×
Carlisle Companies (CSL)	18.8×
Snap-on (SNA)	18.5×
Brady (BRC)	18.5×
Canadian National Railway (CNI)	18.4×
FedEx (FDX)	18.4×
Pool (POOL)	18.1×
McGrath RentCorp (MGRC)	17.5×
Honeywell International (HON)	17.5×
A. O. Smith (AOS)	17.4×
Textron (TXT)	16.6×
Northrop Grumman (NOC)	16.1×
United Parcel Service (UPS)	15.9×
Delta Air Lines (DAL)	15.5×
ABM Industries (ABM)	15.2×
Masco (MAS)	14.6×
Upwork (UPWK)	12.9×
United Airlines Holdings (UAL)	12.7×
AGCO (AGCO)	10.9×

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

P/E Ratio daily chart for Caterpillar (CAT)

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

About P/E Ratio at Caterpillar (CAT)

Caterpillar P/E Ratio by Year

Caterpillar P/E Ratio 2025: 30.1×

Caterpillar P/E Ratio 2024: 16.3×

Caterpillar P/E Ratio 2023: 14.4×

Caterpillar P/E Ratio 2022: 18.5×

Caterpillar P/E Ratio 2021: 17.2×

Sector peers by P/E Ratio — chart

Sector peers by P/E Ratio — table

Frequently asked questions

Caterpillar (CAT) Key Financials