Caterpillar Inc. is the world's largest construction equipment manufacturer with headquarters in Peoria, Illinois. In addition to construction machinery, Caterpillar also manufactures diesel engines, gas engines and industrial gas turbines.
P/E ratio for Caterpillar (CAT)
P/E ratio as of June 2023 (TTM): 17.8
According to Caterpillar's latest financial reports and stock price the company's current price-to-earnings ratio (TTM) is 17.7942. At the end of 2021 the company had a P/E ratio of 17.3.
P/E ratio history for Caterpillar from 2001 to 2022
PE ratio at the end of each year
| Year | P/E ratio | Change |
|---|---|---|
| 2021 | 17.3 | -47.68% |
| 2020 | 33.1 | 142.7% |
| 2019 | 13.6 | 11.18% |
| 2018 | 12.3 | -89.88% |
| 2017 | 121 | -115.68% |
| 2016 | -773 | -4080.16% |
| 2015 | 19.4 | 26.86% |
| 2014 | 15.3 | -1.06% |
| 2013 | 15.5 | 50.37% |
| 2012 | 10.3 |
P/E ratio for similar companies or competitors
| Company | P/E ratio | P/E ratio differencediff. | Country |
|---|---|---|---|
 Cummins
CMI | 12.2 | -31.40% | 🇺🇸 USA |
 Deere & Company DE | 13.7 | -23.04% | 🇺🇸 USA |
 General Electric GE | -258 | -1,550.46% | 🇺🇸 USA |
 Astec Industries
ASTE | 119 | 570.04% | 🇺🇸 USA |
 CNH Industrial
CNHI | 8.47 | -52.42% | 🇬🇧 UK |
How to read a P/E ratio?
The Price/Earnings ratio measures the relationship between a company's stock price and its earnings per share. A low but positive P/E ratio stands for a company that is generating high earnings compared to its current valuation and might be undervalued. A company with a high negative (near 0) P/E ratio stands for a company that is generating heavy losses compared to its current valuation.
Companies with a P/E ratio over 30 or a negative one are generaly seen as "growth stocks" meaning that investors typically expect the company to grow or to become profitable in the future.
Companies with a positive P/E ratio bellow 10 are generally seen as "value stocks" meaning that the company is already very profitable and unlikely to strong growth in the future.