Caterpillar Inc. (CAT) Discounted Free Cash Flow - Perpetuity - Discounting Cash Flows
CAT
Caterpillar Inc.
CAT (NYSE)

Estimated Value

USD

Market Price USD

* Values are not guaranteed, please do your own
research before making investment decisions.

Discounted Free Cash Flow Model

Discounted Free Cash Flow calculates the value of a share based on the company's estimated future Free Cash Flow figures.

See our GitHub Model Documentation

Interactive Assumptions

Discount Rate

Discount Rate

Discount Rate = Equity Weight * Cost of Equity + Debt Weight * Cost of Debt * (1 - Tax Rate)

Calculated using Weighted Average Cost of Capital (WACC) formula. It represents a firm’s average after-tax cost of capital from all sources, including common stock, preferred stock, bonds, and other forms of debt.

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Cost of Equity

Cost of Equity = Risk Free Rate + Beta * Market Premium

The cost of equity is the theoretical rate of return that an equity investment should generate. It is calculated using the CAPM formula.

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Cost of Debt

Cost of Debt = Interest Expense / Total Debt

The cost of debt is the effective rate that a company pays on its debt, such as bonds and loans.

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Equity & Debt Weights

Debt Weight = Total Debt / (Market Capitalization + Total Debt) = 1 - Equity Weight

The Equity Weight represents the proportion of equity-based financing (Market Capitalization), while the Debt Weight represents the proportion of debt-based financing (Total Debt).


Tax Rate

Tax Rate = Income Tax Expense / Income Before Tax

The overall tax rate paid by the company on its earned income.

↳ Beta

Beta

Beta measures the volatility of a stock's price in relation to the overall stock market. A higher beta indicates greater price fluctuations relative to the market.

↳ Risk Free Rate

Risk-Free Rate

The risk-free rate represents the return an investor expects from an absolutely risk-free investment over a specified time period. By default, it is set to the current yield of the U.S. 10-Year Treasury Bond.

↳ Market Premium

Market Premium

The market risk premium represents the additional return over the risk-free rate that investors expect for taking on the risks associated with equities.

Growth In Perpetuity

Growth in Perpetuity

The rate at which the company's free cash flow is assumed to grow indefinitely. By default, this rate equals the yield of the U.S. 10-Year Treasury Bond.

Historical Years

Historical Years

The number of years of historical data used to calculate averages and trends for analysis.

Projection Years

Projection Years

The number of years into the future for which the analysis projects financial performance and metrics.

Revenue Growth Rate

Revenue Growth Rate

The annual growth rate applied to projected revenue, starting from the second projection year onward.

Operating Cash Flow Margin

Operating Cash Flow Margin

Projected Operating Cash Flow = Projected Revenue * Operating Cash Flow Margin

This margin represents the percentage of revenue used to estimate future Operating Cash Flow.

Capital Expenditure Margin

Capital Expenditure Margin

Projected Free Cash Flow = Projected Operating Cash Flow - Projected Revenue * Capital Expenditure Margin

This margin is used to estimate future capital expenditures as a percentage of revenue, which in turn is subtracted from Operating Cash Flow to calculate Free Cash Flow.

Results

Terminal Value 166.7 Bil. USD
Discounted Terminal Value 109.7 Bil. USD
Sum of Discounted Free Cash Flow 27.21 Bil. USD
Enterprise Value 136.9 Bil. USD
Cash and Equivalents 3.56 Bil. USD
Total Debt 38.59 Bil. USD
Equity Value 101.9 Bil. USD
Shares Outstanding 474.9 Mil. USD
Estimated Value per Share 214.5 USD
Yield of the U.S. 10 Year Treasury Note 4.35%
Average Cash from Operating Activities Margin 14.92%
Average Capital Expenditure Margin 5.28%
Cost of Equity 10.27%
Equity Weight 83.4%
Cost of Debt 1.26%
Debt Weight 16.6%
Tax Rate 20.26%

Monetary values are in USD

Edit Chart Values 2025 2026 2027 2028 2029

amounts of USD except for #

2024 2025 2026 2027 2028 2029
Revenue 64,809 65,900 67,529 69,199 70,909 72,662
Revenue Growth Rate -3.36% 1.68% 2.47% 2.47% 2.47% 2.47%
Operating Cash Flow 12,035 9,832 10,075 10,324 10,580 10,841
Operating Cash Flow Margin 18.57% 14.92% 14.92% 14.92% 14.92% 14.92%
Capital Expenditure -3,215 -3,479 -3,565 -3,653 -3,743 -3,836
Capital Expenditure Margin -4.96% -5.28% -5.28% -5.28% -5.28% -5.28%
Free Cash Flow 8,820 6,353 6,510 6,671 6,836 7,005
Free Cash Flow Margin 13.61% 9.64% 9.64% 9.64% 9.64% 9.64%
Compounded Discount Rate
4.03% 13.11% 22.99% 33.77% 45.45%
Discounted Free Cash Flow 8,820 6,108 5,756 5,424 5,111 4,816

amounts of USD except for #

Average LTM 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015
Revenue 53,346 63,259 64,809 67,060 59,427 50,971 41,748 53,800 54,722 45,462 38,537 47,011
Revenue Growth Rate 2.47% -2.39% -3.36% 12.84% 16.59% 22.09% -22.4% -1.69% 20.37% 17.97% -18.03% -14.81%
Cost of Revenue 36,680 40,806 41,485 43,797 41,915 35,968 29,671 37,384 37,719 31,695 28,905 34,133
Gross Profit 16,666 22,453 23,324 23,263 17,512 15,003 12,077 16,416 17,003 13,767 9,632 12,878
Gross Margin 30.75% 35.49% 35.99% 34.69% 29.47% 29.43% 28.93% 30.51% 31.07% 30.28% 24.99% 27.39%
Operating Income 7,548 12,390 13,072 12,966 7,904 6,878 4,553 8,290 8,290 4,406 498 3,785
Operating Margin 13.31% 19.59% 20.17% 19.33% 13.3% 13.49% 10.91% 15.41% 15.15% 9.69% 1.29% 8.05%
Net Income 5,700 9,939 10,792 10,335 6,705 6,489 2,998 6,093 6,147 754 -67 2,512
Net Margin 9.85% 15.71% 16.65% 15.41% 11.28% 12.73% 7.18% 11.33% 11.23% 1.66% -0.174% 5.34%
Cash from Operating Activities 8,085 11,272 12,035 12,885 7,766 7,198 6,327 6,912 6,558 5,702 5,608 6,675
Cash from Operating Activities Margin 14.92% 17.82% 18.57% 19.21% 13.07% 14.12% 15.16% 12.85% 11.98% 12.54% 14.55% 14.2%
Capital Expenditure -2,754 -2,687 -3,215 -3,092 -2,599 -2,472 -2,115 -2,669 -2,916 -2,336 -2,928 -3,261
Free Cash Flow 5,332 8,585 8,820 9,793 5,167 4,726 4,212 4,243 3,642 3,366 2,680 3,414
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Discounting Cash Flows

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