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 April 2024 (TTM): 20.5
According to Caterpillar's latest financial reports and stock price the company's current price-to-earnings ratio (TTM) is 20.48. At the end of 2022 the company had a P/E ratio of 18.8.
P/E ratio history for Caterpillar from 2001 to 2023
PE ratio at the end of each year
| Year | P/E ratio | Change |
|---|---|---|
| 2022 | 18.8 | 8.68% |
| 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 | -4864.82% |
| 2015 | 16.2 | 5.97% |
| 2014 | 15.3 | -1.06% |
| 2013 | 15.5 | 50.37% |
| 2012 | 10.3 | -13.36% |
| 2011 | 11.9 | -45.87% |
| 2010 | 21.9 | -44.58% |
| 2009 | 39.6 | 416.52% |
| 2008 | 7.66 | -41.39% |
| 2007 | 13.1 | 14.47% |
| 2006 | 11.4 | -16.77% |
| 2005 | 13.7 | -16.17% |
| 2004 | 16.4 | -37.3% |
| 2003 | 26.1 | 32.48% |
| 2002 | 19.7 | -11.37% |
| 2001 | 22.2 |
P/E ratio for similar companies or competitors
| Company | P/E ratio | P/E ratio differencediff. | Country |
|---|---|---|---|
 Cummins
CMI | 14.8 | -27.76% | 🇺🇸 USA |
 Deere & Company DE | 11.6 | -43.31% | 🇺🇸 USA |
 General Electric GE | 18.6 | -9.09% | 🇺🇸 USA |
 Astec Industries
ASTE | 56.4 | 175.19% | 🇺🇸 USA |
 CNH Industrial
CNHI | 6.55 | -68.01% | 🇬🇧 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.