Caterpillar Inc. (CAT) Simple Dividend Discount Model - 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.

Simple Dividend Discount Model

This model is used to estimate the value of companies that have reached maturity and pay stable dividends as a significant percentage of their Free Cashflow to Equity, with little to no high growth chance.

See our GitHub Documentation

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.

Read More

↳ 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

The 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.

Expected Dividend

Expected Dividend

The estimated annual dividend per share for the next year.

Growth In Perpetuity

Growth in Perpetuity

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

Historical Years

Historical Years

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

Forecast Years

Forecast Years

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

Results

LTM dividend 5.74 USD
Next year's expected dividend 5.63 USD
Cost of Equity 10.27%
Expected Growth Rate 4.35%

Historical and Projected Dividends

Monetary values are in USD

amounts of USD except for #

2024 LTM 2025 2026 2027 2028 2029
Dividend per Share 5.42 5.74 5.63 5.87 6.13 6.4 6.68
Dividend Growth Rate 8.4% 5.9% 3.88% 4.35% 4.35% 4.35% 4.35%

amounts of USD except for #

Average LTM 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015
Net Income 5,700 9,939 10,792 10,335 6,705 6,489 2,998 6,093 6,147 754 -67 2,512
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
Return on Equity 34.87% 50.99% 55.36% 65.13% 40.68% 42.33% 20.55% 43.4% 44.88% 5.74% -0.452% 15%
Common Dividends 2,215 2,726 2,638 2,553 2,434 2,328 2,242 2,123 1,940 1,835 1,800 1,747
Payout Ratio -199.6% 27.9% 24.45% 24.7% 36.29% 35.88% 74.77% 34.84% 31.57% 244.1% -2,800% 69.5%
Shares Outstanding 546.4 474.9 486.7 510.6 526.9 544 544.1 561.6 591.4 591.8 584.3 594.3
Reference Market Price 207.1 397.9 362.8 295.7 239.6 206.7 182.0 147.7 127.1 157.6 92.74 67.96
EPS 10.89 20.57 22.17 20.24 12.73 11.93 5.51 10.85 10.39 1.27 -0.11 4.23
Dividend per Share 4.12 5.74 5.42 5.0 4.62 4.28 4.12 3.78 3.28 3.1 3.08 2.94
Dividend Growth Rate 7.54% 5.9% 8.4% 8.22% 7.94% 3.88% 9% 15.24% 5.81% 0.649% 4.76% 13.08%
Dividend Yield 2.33% 1.44% 1.49% 1.69% 1.93% 2.07% 2.26% 2.56% 2.58% 1.97% 3.32% 4.33%
discounting cash flows home logo

Discounting Cash Flows

Are you finding our services helpful? Review us on trustpilot logo Trustpilot
Have a question? Contact us