Caterpillar Inc.: what the price is pricing in

The price implies cash-flow growth of 16.1% a year; our model expects 11.6%. The gap is too narrow for a position this quarter. Switch lens below to see the same question asked of earnings, growth, sales and book value.

No published rating for Caterpillar Inc.: consolidated figures include Cat Financial, a finance arm whose borrowing funds customer loans, so a single cash-flow value of the group is not meaningful; not rated until we value the parts separately. The readings below run our models backwards for research and show how trading the gap would have done; they are not a valuation or a rating. The valuation page shows the models and their status.

What growth in cash flow is the price paying for?

The price implies cash-flow growth of 16.1% a year; our model expects 11.6%.

Gap too narrow for a position this quarter

What the price implies What our model expects

Quarters with a position118 long, 3 short, since December 31, 2010

Beat the S&P 5007 of 1163.6% of quarters held

Strategy against the index+15.9%cumulative; worst fall -35.5%

$10,000 became$97,152S&P 500 bought and held: $79,905

Over time

The growth in owner earnings (free cash flow after stock-based pay) that would justify the share price in our discounted-cash-flow model, against the growth the model itself assumes from the company's record.

Growth our model assumes Growth the price implies Long quarter Short quarter. Lower panel: the share price at each quarter end, adjusted for later share splits and spin-offs (the table below gives the price as traded).

$10,000 trading the gap vs the S&P 500

StrategyS&P 500, buy and hold Hypothetical, before costs. The strategy holds the S&P 500 and only changes on a signal: it switches into CAT in long quarters and adds a short of CAT in short quarters. The gap between the lines is what the signal added or lost.

Skill or luck?

In plain English: Across 11 quarters with a position, this lens beat the S&P 500 in 7, by +2.8% a quarter on average. That could easily be chance. One company is a small sample: the results across all companies are the better guide.

Positions	Quarters	Beat the S&P 500	Average vs S&P 500, a quarter	Typical (median), a quarter	A year	Confidence (t)	Evidence
Longs	8	62.5%	+3.3%	+5.6%	+11.7%	0.91	No reliable evidence
Shorts	3	66.7%	+1.6%	+14.1%	−9.5%	0.08	Too few quarters
All positions	11	63.6%	+2.8%	+5.8%	+5.5%	0.55	No reliable evidence

Each position is measured against the S&P 500 over the same quarter: a long earns the stock's return minus the index's, a short the index's minus the stock's. "A year" compounds the per-quarter results. Evidence: strong at a t-statistic of 2 or more, some from 1.5; "worse" when the result is that far below zero; one company's history is a small sample, so read these alongside the results across all companies.

Every quarter (64)

From	Price paid	Growth the price implies	Growth our model assumes	Position	CAT	S&P 500
September 30, 2026 (open)	$810.79	16.1%	11.6%	No position	−23.7%	−0.8%
June 30, 2026	$1064.90	22.2%	8.3%	Short	−23.7%	+2.4%
March 31, 2026	$708.46	15.8%	4.3%	Short	+50.6%	+15.1%
December 31, 2025	$572.87	11.0%	2.0%	No position	+24.0%	−4.4%
September 30, 2025	$477.15	10.9%	2.0%	No position	+20.4%	+2.7%
June 30, 2025	$388.21	8.2%	2.0%	No position	+23.4%	+8.1%
March 31, 2025	$329.80	5.6%	2.5%	No position	+18.3%	+10.8%
December 31, 2024	$362.76	4.9%	4.7%	No position	−8.8%	−4.3%
September 30, 2024	$391.12	9.7%	7.8%	No position	−6.9%	+2.5%
June 30, 2024	$333.10	7.4%	12.3%	No position	+17.9%	+5.8%
March 31, 2024	$366.43	8.5%	15.0%	No position	−8.8%	+4.4%
December 31, 2023	$295.67	3.1%	16.4%	Long	+24.5%	+10.4%
September 30, 2023	$273.00	6.9%	15.8%	No position	+8.9%	+11.6%
June 30, 2023	$246.05	7.3%	11.9%	No position	+11.5%	−3.2%
March 31, 2023	$228.84	6.7%	10.0%	No position	+8.1%	+8.7%
December 31, 2022	$239.56	4.4%	7.5%	No position	−4.0%	+7.5%
September 30, 2022	$164.08	5.7%	7.2%	No position	+47.0%	+7.6%
June 30, 2022	$178.76	7.0%	8.2%	No position	−7.6%	−4.9%
March 31, 2022	$222.82	9.5%	7.9%	No position	−19.4%	−16.1%
December 31, 2021	$206.74	4.3%	3.9%	No position	+8.3%	−4.6%
September 30, 2021	$191.97	8.7%	2.0%	No position	+8.3%	+11.1%
June 30, 2021	$217.63	11.8%	4.0%	No position	−11.3%	+0.6%
March 31, 2021	$231.87	15.0%	4.0%	Short	−5.7%	+8.4%
December 31, 2020	$182.02	7.8%	4.0%	No position	+28.1%	+6.3%
September 30, 2020	$149.15	9.8%	4.0%	No position	+22.8%	+12.1%
June 30, 2020	$126.50	5.5%	4.0%	No position	+18.8%	+9.0%
March 31, 2020	$116.04	2.8%	5.0%	No position	+10.0%	+20.2%
December 31, 2019	$147.68	0.1%	7.2%	No position	−20.9%	−19.4%
September 30, 2019	$126.31	3.2%	9.5%	No position	+17.8%	+9.0%
June 30, 2019	$136.29	4.3%	11.1%	No position	−6.6%	+1.8%
March 31, 2019	$135.49	4.9%	9.4%	No position	+1.2%	+4.2%
December 31, 2018	$127.07	-1.3%	10.1%	Long	+7.3%	+13.5%
September 30, 2018	$152.49	7.2%	9.8%	No position	−16.1%	−13.5%
June 30, 2018	$135.67	6.6%	8.2%	No position	+13.1%	+7.7%
March 31, 2018	$147.38	8.6%	5.9%	No position	−7.5%	+3.5%
December 31, 2017	$157.58	4.5%	2.0%	No position	−6.0%	−1.0%
September 30, 2017	$124.71	6.7%	2.0%	No position	+27.1%	+6.8%
June 30, 2017	$107.46	6.0%	4.0%	No position	+16.9%	+4.4%
March 31, 2017	$92.76	4.8%	4.0%	No position	+16.8%	+3.1%
December 31, 2016	$92.74	-2.9%	4.0%	No position	+0.8%	+5.9%
September 30, 2016	$88.77	2.5%	4.0%	No position	+5.4%	+4.0%
June 30, 2016	$75.81	0.2%	4.0%	No position	+18.2%	+3.8%
March 31, 2016	$76.54	-1.1%	4.0%	No position	+0.0%	+2.5%
December 31, 2015	$67.96	-11.9%	2.0%	Long	+14.0%	+1.3%
September 30, 2015	$65.36	-2.1%	2.0%	No position	+5.1%	+7.0%
June 30, 2015	$84.82	1.5%	2.0%	No position	−22.2%	−6.4%
March 31, 2015	$80.03	2.5%	2.0%	No position	+6.9%	+0.2%
December 31, 2014	$91.53	-2.6%	2.0%	No position	−11.8%	+0.9%
September 30, 2014	$99.03	6.1%	2.0%	No position	−6.9%	+4.9%
June 30, 2014	$108.67	7.3%	4.0%	No position	−8.3%	+1.1%
March 31, 2014	$99.37	7.8%	4.0%	No position	+10.0%	+5.2%
December 31, 2013	$90.81	0.2%	4.0%	No position	+10.1%	+1.7%
September 30, 2013	$83.40	8.7%	6.1%	No position	+9.7%	+10.5%
June 30, 2013	$82.49	10.7%	9.5%	No position	+1.8%	+5.2%
March 31, 2013	$86.97	10.4%	12.1%	No position	−4.5%	+2.9%
December 31, 2012	$89.61	1.6%	20.0%	Long	−3.0%	+10.5%
September 30, 2012	$86.04	5.3%	20.0%	Long	+5.4%	−0.4%
June 30, 2012	$84.91	4.2%	13.0%	No position	+2.0%	+6.3%
March 31, 2012	$106.52	4.8%	13.0%	No position	−19.9%	−2.8%
December 31, 2011	$90.60	-3.6%	13.0%	Long	+18.1%	+12.7%
September 30, 2011	$73.84	-0.5%	13.0%	Long	+23.4%	+11.6%
June 30, 2011	$106.46	6.3%	13.0%	No position	−30.4%	−13.8%
March 31, 2011	$111.35	7.4%	20.0%	Long	−4.0%	+0.0%
December 31, 2010	$93.66	-1.2%	2.0%	No position	+19.4%	+5.9%

Price paid: the closing price that day as traded, before any later share split.

What growth in earnings is the price paying for?

The price implies earnings growth of 14.7% a year; our model expects 11.6%.

Gap too narrow for a position this quarter

What the price implies What our model expects

Quarters with a position3021 long, 9 short, since December 31, 2010

Beat the S&P 50012 of 3040.0% of quarters held

Strategy against the index−28.9%cumulative; worst fall -49.2%

$10,000 became$55,953S&P 500 bought and held: $74,243

Over time

The earnings growth the price-to-earnings ratio requires, against the growth our model assumes. Net income is already after interest, so it is valued at the return shareholders require, plus spare cash (none for banks and insurers, whose cash is funded by deposits and policies), with no debt subtracted.

Growth our model assumes Growth the P/E implies Long quarter Short quarter. Lower panel: the share price at each quarter end, adjusted for later share splits and spin-offs (the table below gives the price as traded).

$10,000 trading the gap vs the S&P 500

Skill or luck?

In plain English: Across 30 quarters with a position, this lens beat the S&P 500 in 12, by −0.1% a quarter on average. That could easily be chance. One company is a small sample: the results across all companies are the better guide.

Positions	Quarters	Beat the S&P 500	Average vs S&P 500, a quarter	Typical (median), a quarter	A year	Confidence (t)	Evidence
Longs	21	33.3%	+0.3%	−2.8%	−1.6%	0.10	No reliable evidence
Shorts	9	55.6%	−1.1%	+5.0%	−10.9%	-0.17	No reliable evidence
All positions	30	40.0%	−0.1%	−1.7%	−4.5%	-0.04	No reliable evidence

Every quarter (62)

From	Price paid	Growth the P/E implies	Growth our model assumes	Position	CAT	S&P 500
September 30, 2026 (open)	$810.79	14.7%	11.6%	No position	−23.7%	−0.8%
June 30, 2026	$1064.90	22.6%	8.3%	Short	−23.7%	+2.4%
March 31, 2026	$708.46	15.9%	4.3%	Short	+50.6%	+15.1%
December 31, 2025	$572.87	11.4%	2.0%	No position	+24.0%	−4.4%
September 30, 2025	$477.15	7.9%	2.0%	No position	+20.4%	+2.7%
June 30, 2025	$388.21	3.7%	2.0%	No position	+23.4%	+8.1%
March 31, 2025	$329.80	-0.7%	2.5%	No position	+18.3%	+10.8%
December 31, 2024	$362.76	1.4%	4.7%	No position	−8.8%	−4.3%
September 30, 2024	$391.12	2.4%	7.8%	No position	−6.9%	+2.5%
June 30, 2024	$333.10	-0.6%	12.3%	Long	+17.9%	+5.8%
March 31, 2024	$366.43	2.7%	15.0%	Long	−8.8%	+4.4%
December 31, 2023	$295.67	1.3%	16.4%	Long	+24.5%	+10.4%
September 30, 2023	$273.00	1.3%	15.8%	Long	+8.9%	+11.6%
June 30, 2023	$246.05	2.4%	11.9%	No position	+11.5%	−3.2%
March 31, 2023	$228.84	2.2%	10.0%	No position	+8.1%	+8.7%
December 31, 2022	$239.56	1.7%	7.5%	No position	−4.0%	+7.5%
September 30, 2022	$164.08	-3.5%	7.2%	Long	+47.0%	+7.6%
June 30, 2022	$178.76	-1.2%	8.2%	No position	−7.6%	−4.9%
March 31, 2022	$222.82	2.6%	7.9%	No position	−19.4%	−16.1%
December 31, 2021	$206.74	5.4%	3.9%	No position	+8.3%	−4.6%
September 30, 2021	$191.97	6.7%	2.0%	No position	+8.3%	+11.1%
June 30, 2021	$217.63	13.4%	4.0%	No position	−11.3%	+0.6%
March 31, 2021	$231.87	17.5%	4.0%	Short	−5.7%	+8.4%
December 31, 2020	$182.02	10.7%	4.0%	No position	+28.1%	+6.3%
September 30, 2020	$149.15	2.9%	4.0%	No position	+22.8%	+12.1%
June 30, 2020	$126.50	-3.9%	4.0%	No position	+18.8%	+9.0%
March 31, 2020	$116.04	-8.0%	5.0%	Long	+10.0%	+20.2%
December 31, 2019	$147.68	-3.0%	7.2%	Long	−20.9%	−19.4%
September 30, 2019	$126.31	-6.1%	9.5%	Long	+17.8%	+9.0%
June 30, 2019	$136.29	-4.7%	11.1%	Long	−6.6%	+1.8%
March 31, 2019	$135.49	-4.1%	9.4%	Long	+1.2%	+4.2%
December 31, 2018	$127.07	3.3%	10.1%	No position	+7.3%	+13.5%
September 30, 2018	$152.49	10.3%	9.8%	No position	−16.1%	−13.5%
June 30, 2018	$135.67	14.4%	8.2%	No position	+13.1%	+7.7%
March 31, 2018	$147.38	36.8%	5.9%	Short	−7.5%	+3.5%
December 31, 2017	$157.58	34.5%	2.0%	Short	−6.0%	−1.0%
September 30, 2017	$124.71	75.0%	2.0%	Short	+27.1%	+6.8%
December 31, 2016	$92.74	21.1%	4.0%	Short	+0.8%	+5.9%
September 30, 2016	$88.77	15.4%	4.0%	Short	+5.4%	+4.0%
June 30, 2016	$75.81	9.3%	4.0%	No position	+18.2%	+3.8%
March 31, 2016	$76.54	0.6%	4.0%	No position	+0.0%	+2.5%
December 31, 2015	$67.96	-6.3%	2.0%	No position	+14.0%	+1.3%
September 30, 2015	$65.36	-9.7%	2.0%	Long	+5.1%	+7.0%
June 30, 2015	$84.82	-5.0%	2.0%	No position	−22.2%	−6.4%
March 31, 2015	$80.03	-4.6%	2.0%	No position	+6.9%	+0.2%
December 31, 2014	$91.53	-2.3%	2.0%	No position	−11.8%	+0.9%
September 30, 2014	$99.03	-0.6%	2.0%	No position	−6.9%	+4.9%
June 30, 2014	$108.67	2.1%	4.0%	No position	−8.3%	+1.1%
March 31, 2014	$99.37	0.7%	4.0%	No position	+10.0%	+5.2%
December 31, 2013	$90.81	0.4%	4.0%	No position	+10.1%	+1.7%
September 30, 2013	$83.40	-4.2%	6.1%	Long	+9.7%	+10.5%
June 30, 2013	$82.49	-6.8%	9.5%	Long	+1.8%	+5.2%
March 31, 2013	$86.97	-8.0%	12.1%	Long	−4.5%	+2.9%
December 31, 2012	$89.61	-9.9%	20.0%	Long	−3.0%	+10.5%
September 30, 2012	$86.04	-8.9%	20.0%	Long	+5.4%	−0.4%
June 30, 2012	$84.91	-6.3%	13.0%	Long	+2.0%	+6.3%
March 31, 2012	$106.52	-1.2%	13.0%	Long	−19.9%	−2.8%
December 31, 2011	$90.60	-2.0%	13.0%	Long	+18.1%	+12.7%
September 30, 2011	$73.84	-7.3%	13.0%	Long	+23.4%	+11.6%
June 30, 2011	$106.46	3.3%	13.0%	No position	−30.4%	−13.8%
March 31, 2011	$111.35	9.8%	20.0%	Long	−4.0%	+0.0%
December 31, 2010	$93.66	12.4%	2.0%	Short	+19.4%	+5.9%

Price paid: the closing price that day as traded, before any later share split.

Is the price-to-earnings ratio cheap or dear for the growth delivered?

Caterpillar Inc. trades on 34.6 times earnings while its earnings per share grew 13.1% a year: a PEG of 2.64.

Gap too narrow for a position this quarter

PEG: under 0.75 cheap for the growth, over 3 expensive

Quarters with a position2317 long, 6 short, since March 31, 2013

Beat the S&P 50012 of 2352.2% of quarters held

Strategy against the index+53.5%cumulative; worst fall -15.7%

$10,000 became$50,283S&P 500 bought and held: $33,802

Over time

The P/E divided by the earnings-per-share growth delivered over three years. Under 0.75 the market pays little for the growth (long); over 3 it pays a lot (short).

EPS growth, 3 years (%) Price-to-earnings ratio (x) Long quarter Short quarter. Lower panel: the share price at each quarter end, adjusted for later share splits and spin-offs (the table below gives the price as traded).

$10,000 trading the gap vs the S&P 500

Skill or luck?

In plain English: Across 23 quarters with a position, this lens beat the S&P 500 in 12, by +2.4% a quarter on average. That could easily be chance. One company is a small sample: the results across all companies are the better guide.

Positions	Quarters	Beat the S&P 500	Average vs S&P 500, a quarter	Typical (median), a quarter	A year	Confidence (t)	Evidence
Longs	17	35.3%	+0.4%	−2.8%	−0.4%	0.15	No reliable evidence
Shorts	6	100.0%	+8.0%	+4.8%	+34.7%	2.10	Too few quarters
All positions	23	52.2%	+2.4%	+0.6%	+7.7%	1.09	No reliable evidence

Every quarter (36)

From	Price paid	Price-to-earnings ratio (x)	EPS growth, 3 years (%)	Position	CAT	S&P 500
September 30, 2026 (open)	$810.79	34.6x	13.1%	No position	−23.7%	−0.8%
June 30, 2026	$1064.90	52.6x	14.1%	Short	−23.7%	+2.4%
March 31, 2026	$708.46	37.5x	14.2%	No position	+50.6%	+15.1%
December 31, 2025	$572.87	29.1x	12.3%	No position	+24.0%	−4.4%
September 30, 2025	$477.15	23.8x	16.3%	No position	+20.4%	+2.7%
June 30, 2025	$388.21	18.6x	19.9%	No position	+23.4%	+8.1%
March 31, 2025	$329.80	14.8x	23.1%	Long	+18.3%	+10.8%
December 31, 2024	$362.76	16.5x	32.1%	Long	−8.8%	−4.3%
September 30, 2024	$391.12	17.4x	40.1%	Long	−6.9%	+2.5%
June 30, 2024	$333.10	14.7x	52.4%	Long	+17.9%	+5.8%
March 31, 2024	$366.43	18.0x	54.4%	Long	−8.8%	+4.4%
December 31, 2023	$295.67	16.6x	43.0%	Long	+24.5%	+10.4%
September 30, 2023	$273.00	16.8x	28.9%	Long	+8.9%	+11.6%
June 30, 2023	$246.05	18.0x	12.7%	No position	+11.5%	−3.2%
March 31, 2023	$228.84	17.8x	5.6%	Short	+8.1%	+8.7%
December 31, 2022	$239.56	17.1x	9.4%	No position	−4.0%	+7.5%
September 30, 2022	$164.08	13.0x	5.2%	No position	+47.0%	+7.6%
June 30, 2022	$178.76	14.8x	3.5%	Short	−7.6%	−4.9%
March 31, 2022	$222.82	18.6x	4.9%	Short	−19.4%	−16.1%
December 31, 2021	$206.74	22.0x	14.2%	No position	+8.3%	−4.6%
September 30, 2021	$191.97	24.1x	15.5%	No position	+8.3%	+11.1%
June 30, 2021	$217.63	34.9x	19.3%	No position	−11.3%	+0.6%
March 31, 2021	$231.87	42.7x	63.2%	Long	−5.7%	+8.4%
December 31, 2020	$182.02	30.0x	59.2%	Long	+28.1%	+6.3%
September 30, 2020	$149.15	19.6x	246.1%	Long	+22.8%	+12.1%
December 31, 2019	$147.68	13.7x	83.0%	Long	−20.9%	−19.4%
September 30, 2019	$126.31	11.5x	70.1%	Long	+17.8%	+9.0%
June 30, 2019	$136.29	12.4x	60.8%	Long	−6.6%	+1.8%
March 31, 2019	$135.49	12.9x	34.9%	Long	+1.2%	+4.2%
December 31, 2018	$127.07	20.0x	4.3%	Short	+7.3%	+13.5%
June 30, 2014	$108.67	18.1x	1.5%	Short	−8.3%	+1.1%
March 31, 2014	$99.37	17.0x	11.5%	No position	+10.0%	+5.2%
December 31, 2013	$90.81	17.0x	20.0%	No position	+10.1%	+1.7%
September 30, 2013	$83.40	13.1x	37.3%	Long	+9.7%	+10.5%
June 30, 2013	$82.49	11.1x	56.2%	Long	+1.8%	+5.2%
March 31, 2013	$86.97	10.3x	81.0%	Long	−4.5%	+2.9%

Price paid: the closing price that day as traded, before any later share split.

What profit margin is the price paying for?

The price implies an owner-earnings margin of 19.0%; the company has kept 14.8%.

Gap too narrow for a position this quarter

What the price implies What the company delivered

Quarters with a position135 long, 8 short, since December 31, 2010

Beat the S&P 5008 of 1361.5% of quarters held

Strategy against the index−22.4%cumulative; worst fall -67.8%

$10,000 became$63,416S&P 500 bought and held: $79,905

Over time

The owner-earnings margin (free cash flow after stock pay, as a share of revenue) the price requires at our model's growth, against the margin the company has delivered over three years.

Margin delivered Margin the price implies Long quarter Short quarter. Lower panel: the share price at each quarter end, adjusted for later share splits and spin-offs (the table below gives the price as traded).

$10,000 trading the gap vs the S&P 500

Skill or luck?

In plain English: Across 13 quarters with a position, this lens beat the S&P 500 in 8, by −0.2% a quarter on average. That could easily be chance. One company is a small sample: the results across all companies are the better guide.

Positions	Quarters	Beat the S&P 500	Average vs S&P 500, a quarter	Typical (median), a quarter	A year	Confidence (t)	Evidence
Longs	5	80.0%	+8.0%	+11.8%	+34.9%	2.38	Too few quarters
Shorts	8	50.0%	−5.2%	−6.2%	−27.0%	-0.67	No reliable evidence
All positions	13	61.5%	−0.2%	+5.4%	−7.5%	-0.03	No reliable evidence

Every quarter (64)

From	Price paid	Margin the price implies	Margin delivered	Position	CAT	S&P 500
September 30, 2026 (open)	$810.79	19.0%	14.8%	No position	−23.7%	−0.8%
June 30, 2026	$1064.90	31.6%	14.7%	Short	−23.7%	+2.4%
March 31, 2026	$708.46	28.2%	14.8%	Short	+50.6%	+15.1%
December 31, 2025	$572.87	24.7%	14.8%	Short	+24.0%	−4.4%
September 30, 2025	$477.15	24.3%	14.6%	Short	+20.4%	+2.7%
June 30, 2025	$388.21	20.6%	14.5%	Short	+23.4%	+8.1%
March 31, 2025	$329.80	17.0%	14.2%	No position	+18.3%	+10.8%
December 31, 2024	$362.76	13.7%	13.5%	No position	−8.8%	−4.3%
September 30, 2024	$391.12	14.3%	12.9%	No position	−6.9%	+2.5%
June 30, 2024	$333.10	9.7%	12.8%	No position	+17.9%	+5.8%
March 31, 2024	$366.43	9.1%	13.1%	No position	−8.8%	+4.4%
December 31, 2023	$295.67	6.0%	12.6%	Long	+24.5%	+10.4%
September 30, 2023	$273.00	7.2%	11.8%	No position	+8.9%	+11.6%
June 30, 2023	$246.05	8.7%	11.2%	No position	+11.5%	−3.2%
March 31, 2023	$228.84	9.5%	11.4%	No position	+8.1%	+8.7%
December 31, 2022	$239.56	9.6%	11.5%	No position	−4.0%	+7.5%
September 30, 2022	$164.08	9.7%	10.5%	No position	+47.0%	+7.6%
June 30, 2022	$178.76	10.1%	10.8%	No position	−7.6%	−4.9%
March 31, 2022	$222.82	12.4%	11.4%	No position	−19.4%	−16.1%
December 31, 2021	$206.74	12.2%	11.9%	No position	+8.3%	−4.6%
September 30, 2021	$191.97	16.9%	11.5%	Short	+8.3%	+11.1%
June 30, 2021	$217.63	17.7%	11.4%	Short	−11.3%	+0.6%
March 31, 2021	$231.87	19.6%	10.6%	Short	−5.7%	+8.4%
December 31, 2020	$182.02	11.7%	9.4%	No position	+28.1%	+6.3%
September 30, 2020	$149.15	12.6%	9.0%	No position	+22.8%	+12.1%
June 30, 2020	$126.50	10.4%	9.6%	No position	+18.8%	+9.0%
March 31, 2020	$116.04	8.8%	10.0%	No position	+10.0%	+20.2%
December 31, 2019	$147.68	6.5%	9.7%	No position	−20.9%	−19.4%
September 30, 2019	$126.31	7.2%	10.2%	No position	+17.8%	+9.0%
June 30, 2019	$136.29	7.0%	10.3%	No position	−6.6%	+1.8%
March 31, 2019	$135.49	7.8%	10.1%	No position	+1.2%	+4.2%
December 31, 2018	$127.07	5.3%	10.1%	No position	+7.3%	+13.5%
September 30, 2018	$152.49	8.9%	10.4%	No position	−16.1%	−13.5%
June 30, 2018	$135.67	9.6%	10.5%	No position	+13.1%	+7.7%
March 31, 2018	$147.38	12.3%	10.6%	No position	−7.5%	+3.5%
December 31, 2017	$157.58	13.2%	11.4%	No position	−6.0%	−1.0%
September 30, 2017	$124.71	15.3%	11.7%	No position	+27.1%	+6.8%
June 30, 2017	$107.46	12.7%	11.3%	No position	+16.9%	+4.4%
March 31, 2017	$92.76	11.6%	11.1%	No position	+16.8%	+3.1%
December 31, 2016	$92.74	7.4%	11.1%	No position	+0.8%	+5.9%
September 30, 2016	$88.77	10.8%	11.8%	No position	+5.4%	+4.0%
June 30, 2016	$75.81	9.5%	11.9%	No position	+18.2%	+3.8%
March 31, 2016	$76.54	8.9%	11.9%	No position	+0.0%	+2.5%
December 31, 2015	$67.96	5.0%	11.2%	Long	+14.0%	+1.3%
September 30, 2015	$65.36	8.2%	10.4%	No position	+5.1%	+7.0%
June 30, 2015	$84.82	9.3%	9.6%	No position	−22.2%	−6.4%
March 31, 2015	$80.03	8.9%	8.7%	No position	+6.9%	+0.2%
December 31, 2014	$91.53	6.1%	8.0%	No position	−11.8%	+0.9%
September 30, 2014	$99.03	9.9%	7.9%	No position	−6.9%	+4.9%
June 30, 2014	$108.67	9.6%	8.0%	No position	−8.3%	+1.1%
March 31, 2014	$99.37	9.1%	7.3%	No position	+10.0%	+5.2%
December 31, 2013	$90.81	5.8%	7.2%	No position	+10.1%	+1.7%
September 30, 2013	$83.40	7.2%	6.2%	No position	+9.7%	+10.5%
June 30, 2013	$82.49	5.7%	5.3%	No position	+1.8%	+5.2%
March 31, 2013	$86.97	4.9%	5.4%	No position	−4.5%	+2.9%
December 31, 2012	$89.61	2.1%	5.8%	No position	−3.0%	+10.5%
September 30, 2012	$86.04	3.0%	6.8%	No position	+5.4%	−0.4%
June 30, 2012	$84.91	4.7%	7.7%	No position	+2.0%	+6.3%
March 31, 2012	$106.52	5.7%	9.0%	No position	−19.9%	−2.8%
December 31, 2011	$90.60	3.7%	9.4%	Long	+18.1%	+12.7%
September 30, 2011	$73.84	4.4%	9.4%	Long	+23.4%	+11.6%
June 30, 2011	$106.46	6.6%	9.6%	No position	−30.4%	−13.8%
March 31, 2011	$111.35	5.2%	10.4%	Long	−4.0%	+0.0%
December 31, 2010	$93.66	9.4%	11.3%	No position	+19.4%	+5.9%

Price paid: the closing price that day as traded, before any later share split.

What return on equity is the price paying for?

The price implies a return on equity of 118.5%; the company earned 57.0%.

Market more optimistic than our model: short this quarter

What the price implies What the company delivered

Quarters with a position3711 long, 26 short, since December 31, 2010

Beat the S&P 50018 of 3748.6% of quarters held

Strategy against the index−73.7%cumulative; worst fall -80.3%

$10,000 became$17,044S&P 500 bought and held: $59,778

Over time

The return on equity that justifies the price-to-book ratio, (P/B)(r − g) + g with an 8.5% required return and 2.5% long-run growth, against the return the company delivered last year.

Return on equity delivered Return on equity the price implies Long quarter Short quarter. Lower panel: the share price at each quarter end, adjusted for later share splits and spin-offs (the table below gives the price as traded).

$10,000 trading the gap vs the S&P 500

Skill or luck?

In plain English: Across 37 quarters with a position, this lens beat the S&P 500 in 18, by −2.4% a quarter on average. That could easily be chance. One company is a small sample: the results across all companies are the better guide.

Positions	Quarters	Beat the S&P 500	Average vs S&P 500, a quarter	Typical (median), a quarter	A year	Confidence (t)	Evidence
Longs	11	45.5%	+1.5%	−3.4%	+2.2%	0.33	No reliable evidence
Shorts	26	50.0%	−4.1%	−0.4%	−19.3%	-1.45	No reliable evidence
All positions	37	48.6%	−2.4%	−1.4%	−13.4%	-1.00	No reliable evidence

Every quarter (60)

From	Price paid	Return on equity the price implies	Return on equity delivered	Position	CAT	S&P 500
September 30, 2026 (open)	$810.79	118.5%	57.0%	Short	−23.7%	−0.8%
June 30, 2026	$1064.90	162.0%	51.4%	Short	−23.7%	+2.4%
March 31, 2026	$708.46	96.2%	43.5%	Short	+50.6%	+15.1%
December 31, 2025	$572.87	80.8%	46.3%	Short	+24.0%	−4.4%
September 30, 2025	$477.15	74.8%	52.7%	Short	+20.4%	+2.7%
June 30, 2025	$388.21	64.0%	55.7%	Short	+23.4%	+8.1%
March 31, 2025	$329.80	51.7%	55.4%	No position	+18.3%	+10.8%
December 31, 2024	$362.76	57.1%	53.5%	No position	−8.8%	−4.3%
September 30, 2024	$391.12	69.5%	62.2%	Short	−6.9%	+2.5%
June 30, 2024	$333.10	58.8%	62.8%	No position	+17.9%	+5.8%
March 31, 2024	$366.43	59.7%	58.4%	No position	−8.8%	+4.4%
December 31, 2023	$295.67	46.8%	50.5%	No position	+24.5%	+10.4%
September 30, 2023	$273.00	48.7%	49.1%	No position	+8.9%	+11.6%
June 30, 2023	$246.05	44.7%	40.3%	No position	+11.5%	−3.2%
March 31, 2023	$228.84	47.6%	41.4%	Short	+8.1%	+8.7%
December 31, 2022	$239.56	51.0%	45.6%	Short	−4.0%	+7.5%
September 30, 2022	$164.08	35.9%	41.4%	Long	+47.0%	+7.6%
June 30, 2022	$178.76	36.3%	38.5%	No position	−7.6%	−4.9%
March 31, 2022	$222.82	46.5%	40.7%	Short	−19.4%	−16.1%
December 31, 2021	$206.74	43.2%	32.5%	Short	+8.3%	−4.6%
September 30, 2021	$191.97	40.2%	28.6%	Short	+8.3%	+11.1%
June 30, 2021	$217.63	45.8%	22.3%	Short	−11.3%	+0.6%
March 31, 2021	$231.87	52.5%	20.0%	Short	−5.7%	+8.4%
December 31, 2020	$182.02	42.3%	22.1%	Short	+28.1%	+6.3%
September 30, 2020	$149.15	37.9%	28.9%	Short	+22.8%	+12.1%
June 30, 2020	$126.50	31.9%	35.7%	No position	+18.8%	+9.0%
December 31, 2019	$147.68	35.7%	39.1%	No position	−20.9%	−19.4%
September 30, 2019	$126.31	31.7%	42.1%	Long	+17.8%	+9.0%
June 30, 2019	$136.29	33.1%	41.4%	Long	−6.6%	+1.8%
December 31, 2018	$127.07	31.3%	24.1%	Short	+7.3%	+13.5%
September 30, 2018	$152.49	39.5%	21.6%	Short	−16.1%	−13.5%
June 30, 2018	$135.67	34.9%	15.4%	Short	+13.1%	+7.7%
December 31, 2017	$157.58	38.6%	5.6%	Short	−6.0%	−1.0%
September 30, 2017	$124.71	34.1%	0.7%	Short	+27.1%	+6.8%
June 30, 2017	$107.46	30.5%	-1.0%	Short	+16.9%	+4.4%
December 31, 2016	$92.74	23.4%	6.4%	Short	+0.8%	+5.9%
September 30, 2016	$88.77	23.0%	7.9%	Short	+5.4%	+4.0%
June 30, 2016	$75.81	19.5%	9.4%	Short	+18.2%	+3.8%
March 31, 2016	$76.54	20.6%	15.8%	No position	+0.0%	+2.5%
December 31, 2015	$67.96	17.7%	19.3%	No position	+14.0%	+1.3%
September 30, 2015	$65.36	16.5%	20.1%	No position	+5.1%	+7.0%
June 30, 2015	$84.82	20.8%	21.5%	No position	−22.2%	−6.4%
March 31, 2015	$80.03	20.1%	19.6%	No position	+6.9%	+0.2%
December 31, 2014	$91.53	20.6%	21.3%	No position	−11.8%	+0.9%
September 30, 2014	$99.03	20.6%	20.1%	No position	−6.9%	+4.9%
June 30, 2014	$108.67	23.0%	19.8%	No position	−8.3%	+1.1%
March 31, 2014	$99.37	21.0%	19.7%	No position	+10.0%	+5.2%
December 31, 2013	$90.81	22.0%	19.3%	No position	+10.1%	+1.7%
September 30, 2013	$83.40	21.3%	25.2%	No position	+9.7%	+10.5%
June 30, 2013	$82.49	20.6%	29.9%	Long	+1.8%	+5.2%
March 31, 2013	$86.97	22.4%	37.2%	Long	−4.5%	+2.9%
December 31, 2012	$89.61	22.6%	40.6%	Long	−3.0%	+10.5%
September 30, 2012	$86.04	24.1%	40.6%	Long	+5.4%	−0.4%
June 30, 2012	$84.91	25.2%	38.2%	Long	+2.0%	+6.3%
March 31, 2012	$106.52	35.4%	41.4%	Long	−19.9%	−2.8%
December 31, 2011	$90.60	28.0%	36.1%	Long	+18.1%	+12.7%
September 30, 2011	$73.84	24.5%	35.2%	Long	+23.4%	+11.6%
June 30, 2011	$106.46	36.0%	34.0%	No position	−30.4%	−13.8%
March 31, 2011	$111.35	43.1%	27.4%	Short	−4.0%	+0.0%
December 31, 2010	$93.66	39.6%	21.9%	Short	+19.4%	+5.9%

Price paid: the closing price that day as traded, before any later share split.

How the test works

At each quarter end since March 2010 we rebuild the models from Caterpillar Inc.'s quarters ending at least 90 days earlier (and no more than 200 days before that), using the figures as later filed, including any restatement, and value them at that day's close, adjusted for later share splits and spin-offs so that price and share count are on the same basis. A wide enough gap is a long or a short for one quarter (growth 10 points; margin and return on equity 5 points; a PEG under 0.75 or over 3), measured on total return against the S&P 500. The rules were set before the test. No trading or borrowing costs; today's list of companies. Not investment advice. All companies and the results across them.

Compare with peers

Head to head: CAT vs CMI CAT vs PCAR CAT vs WAB

More: Construction Machinery & Heavy Transportation Equipment stocks compared, Industrials sector, rankings of US companies

Figures from Caterpillar Inc.'s SEC filings (10-K and 10-Q), retrieved October 20, 2026. How we read and check them: methodology and data sources. Not investment advice. Back to Caterpillar Inc.