Caterpillar is a manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. The company principally operates through its three product segments - Construction Industries, Resource Industries and Energy & Transportation - and also provides financing and related services through its Financial Products segment. The company was founded in 1925 and is based in Peoria, Illinois.
CAT Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Caterpillar Inc. To summarize, we found that Caterpillar Inc ranked in the 39th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. In terms of the factors that were most noteworthy in this DCF analysis for CAT, they are:
Its compound free cash flow growth rate, as measured over the past 5.77 years, is -0.04% -- higher than only 22.88% of stocks in our DCF forecasting set.
Caterpillar Inc's weighted average cost of capital (WACC) is 7%; for context, that number is higher than merely 8.55% of tickers in our DCF set.
The company's cost of debt, derived from its interest coverage, tax rate, and market capitalization, is greater than only 0% of stocks in its sector (Industrials).
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
CODA, SWK, AXE, CTAS, and LUV can be thought of as valuation peers to CAT, in the sense that they are in the Industrials sector and have a similar price forecast based on DCF valuation.
It’s not out of the question that the stock index could rise 10%, one analyst argues, because there are both fundamental and technical reasons why the stocks that will make up the pandemic recovery play can lead the way.
DOW UPDATE Dragged down by losses for shares of Chevron and Exxon Mobil, the Dow Jones Industrial Average is falling Thursday morning. The Dow (DJIA) was most recently trading 80 points, or 0.3%, lower, as shares of Chevron (CVX) and Exxon Mobil (XOM) have contributed to the index's intraday decline.
DUBLIN--(BUSINESS WIRE)--The "2020 North American Temporary Cooling Market" report has been added to ResearchAndMarkets.com's offering. This report provides a current look at the temporary cooling market amidst the COVID-19 pandemic. An overview of the cooling equipment rental market in North America (United States and Canada) is provided. The report captures the growth drivers, restraints, market trends, market share by revenue, market share by equipment type, market share by tonnage, market s