Stocks
CAT Price Nears $820, but GuruFocus Says It's 78.2% Overvalued
Caterpillar Inc (NYSE: CAT) has been put under scrutiny by GuruFocus' GF Value metric, which suggests that the company is significantly overvalued at its current price of $818.57.
The firm's intrinsic value estimate stands at $459.42, indicating a 78.2% premium in the market price, according to the GF Value™ metric.
This valuation concern is further underscored by CAT's trailing twelve months (TTM) price-to-earnings (P/E) ratio of 35.22x, which more than doubles its 5-year median P/E of 17.37x.
The company's GF Score™ aggregates multiple dimensions of financial health and reflects a fundamentally strong business with notable strengths in growth and profitability but weaknesses in valuation.