Caterpillar Inc. (CAT) Discounted Future Market Cap - 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 Future Market Cap

This model estimates the intrinsic value of a common share by projecting the Future Market Capitalization using the estimated PE Ratio and then discounting it to the Present using an Annual Required Rate of Return.

Interactive Assumptions

Discount Rate

Discount Rate

Discount Rate = 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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↳ Beta

Beta

Beta is a value that measures the price fluctuations (volatility) of a stock with respect to fluctuations in the overall stock market.

↳ Risk Free Rate

Risk-Free Rate

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

↳ Market Premium

Market Premium

Market risk premium represents the excess returns over the risk-free rate that investors expect for taking on the incremental risks connected to the equities market.

Pe Ratio

Price to Earnings (PE) Ratio

Estimated Price to Earnings (PE) Ratio at the end of the projection period.

Future Market Cap = PE Ratio * Projected Net Income

Revenue Growth Rate

Revenue Growth Rate

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

Net Income Margin

Net Income Margin

Net Income expressed as a percentage of Revenue.

Historical Years

Historical Years

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

Projection Years

Projection Years

The number of years for projecting the analysis into the future.

Results

Present Value 178.8 USD
Estimated net income 7.16 Bil. USD
Estimated market capitalization 138.5 Bil. USD
Market capitalization discounted to present 84.93 Bil. USD
Shares Outstanding 474.9 Mil.
Earnings Per Share (EPS) 20.57 USD
Market Price 397.9 USD
Price to Earnings (PE) Ratio 19.01

Historical and forecasted data

Monetary values are in USD

Edit Chart Values 2025 2026 2027 2028 2029

amounts of USD except for #

2024 LTM 2025 2026 2027 2028 2029
Revenue 64,809 63,259 65,900 67,529 69,199 70,909 72,662
Revenue Growth Rate -3.36% -2.39% 1.68% 2.47% 2.47% 2.47% 2.47%
Net Income 10,792 9,939 6,492 6,652 6,817 6,985 7,158

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
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%

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%
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%
Net Income Growth Rate -47.79% -7.9% 4.42% 54.14% 3.33% 116.4% -50.8% -0.878% 715.3% -1,225% -102.7% -32.02%
Stockholders Equity 15,910 18,067 19,491 19,494 15,869 16,484 15,331 14,588 14,039 13,697 13,137 14,809
Equity Growth Rate 1.11% -7.31% -0.015% 22.84% -3.73% 7.52% 5.09% 3.91% 2.5% 4.26% -11.29% -11.57%
Return on Invested Capital (ROIC) 11.84% 20.24% 21.61% 22.29% 13.91% 12.4% 7.88% 12.42% 12.91% 1.6% -0.391% 5.33%
After-tax Operating Income 5,615 9,879 10,502 10,203 6,037 5,418 3,406 6,437 6,490 802 -189.9 2,777
Income Tax Rate 38.35% 20.26% 19.66% 21.31% 23.62% 21.23% 25.18% 22.35% 21.71% 81.8% 138.1% 26.64%
Invested Capital 47,852 48,817 48,603 45,770 43,408 43,692 43,255 51,832 50,291 50,031 48,572 52,100
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