Caterpillar Inc.Opportunity Rank #188(CAT) Intrinsic Value & DCF Analysis (2026)
Current Price
$895.69
Last updated: May 08, 2026
Price vs Intrinsic Value
Fundamental Score
Weighted across 6 signals
Narrative Score
No change vs previous
Trend Score
As of 2026-05-08
The intrinsic value of Caterpillar Inc. (CAT) is estimated at $252.89 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $895.69, the stock appears overvalued relative to its projected cash flow fundamentals. This estimate assumes a 1.63% long-term growth rate and a 10.25% discount rate, reflecting expected future free cash flow and cost of capital.
The intrinsic value of Caterpillar Inc. (CAT) is estimated at $252.89 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $895.69, the stock appears overvalued relative to its projected cash flow fundamentals. This estimate assumes a 1.63% long-term growth rate and a 10.25% discount rate, reflecting expected future free cash flow and cost of capital.Valuation Details
Capital Efficiency
The company is earning below its required return. This may indicate inefficient use of capital or excess cash that isn't being reinvested.
Fundamental Details
Narrative Details
Trend Details
Investment Coach
- Price moving to at least a mid-teens discount to fair value
- Sustained improvement in ROIC versus WACC spread
- Meaningful shifts in the narrative score direction
Free Cash Flow (in millions)
How Intrinziq Estimates Fair Value
Intrinziq estimates Caterpillar Inc.'s intrinsic value using a discounted cash flow (DCF) model based on free cash flow trends and a market-based discount rate. The model projects future cash flows over ten years and discounts them using a market return assumption to estimate fair value.
Caterpillar Inc.Industrials
Caterpillar Inc. manufactures and sells construction and mining equipment, diesel and natural gas engines, and industrial gas turbines worldwide. Its Construction Industries segment offers asphalt pavers, backhoe loaders, compactors, cold planers, compact track and multi-terrain loaders, excavators, motorgraders, pipelayers, road reclaimers, site prep tractors, skid steer loaders, telehandlers, and utility vehicles; mini, small, medium, and large excavators; compact, small, and medium wheel loaders; track-type tractors and loaders; and wheel excavators. The Resource Industries segment provides electric rope shovels, draglines, hydraulic shovels, rotary drills, hard rock vehicles, track-type tractors, mining trucks, longwall miners, wheel loaders, off-highway trucks, articulated trucks, wheel tractor scrapers, wheel dozers, fleet management, landfill compactors, soil compactors, machinery components, autonomous ready vehicles and solutions, select work tools, and safety services and mining performance solutions. The Energy & Transportation segment offers reciprocating engines, generator sets, integrated systems and solutions, turbines and turbine-related services, remanufactured reciprocating engines and components, centrifugal gas compressors, diesel-electric locomotives and components, and other rail-related products and services for marine, oil and gas, industrial, and electric power generation sectors. The company's Financial Products segment provides operating and finance leases, installment sale contracts, working capital loans, and wholesale financing plans; and insurance and risk management products for vehicles, power generation facilities, and marine vessels. The All Other operating segment manufactures filters and fluids, undercarriage, ground engaging tools, etc. The company was formerly known as Caterpillar Tractor Co. and changed its name to Caterpillar Inc. in 1986. The company was founded in 1925 and is headquartered in Deerfield, Illinois.