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 40th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. As for the metrics that stood out in our discounted cash flow analysis of Caterpillar Inc, consider:
Its compound free cash flow growth rate, as measured over the past 5.77 years, is -0.04% -- higher than only 22.73% of stocks in our DCF forecasting set.
Caterpillar Inc's weighted average cost of capital (WACC) is 6%; for context, that number is higher than merely 8.88% 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
FISV, GFF, AXE, NOC, and UNP 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.
Dividend increases are the name of the game. We love them, we monitor them, and are constantly watching each stock in our portfolio and watchlist for news about them. Why? The impact of increases on your dividend income streak is real and is pivotal for your journey to financial freedom....
S&P Chief Economist Says $2.1 Trillion More Spending Ought to Do The Trick When is there ever too much government spending? According to S&P chief economist Beth Ann Bovino, it looks like never, because she wants $2.1 trillion more in government spending, despite multitrillion dollar deficits already that only look set to get worse. She […]The post Market Morning: S&P Says More Spending, Hong Kong Ping Pong, Riots, Food Prices Soar appeared first on Market Exclusive.
DOW UPDATE Shares of Raytheon Technologies Corp. and Boeing are trading lower Friday afternoon, propelling the Dow Jones Industrial Average selloff. Shares of Raytheon Technologies Corp. (RTX) and Boeing (BA) are contributing to the index's intraday decline, as the Dow (DJIA) was most recently trading 265 points (1.
DOW UPDATE The Dow Jones Industrial Average is declining Friday morning with shares of Boeing and Raytheon Technologies Corp. seeing the biggest drops for the price-weighted average. Shares of Boeing (BA) and Raytheon Technologies Corp.