Value Sense
CAT
Caterpillar Inc. (CAT)
Last Price$350.32.7%
Market Cap$169.6B
WACC
7.7%
Cost of Equity
9.4%
Cost of Debt
0.2%
Debt to Equity
22.6%
Beta
0.8
Stock quality
7/10
Great
CAT
is 33.0% overvalued
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CAT WACC

Recent WACC calculation

as of Mar 07, 2025
Cost of Equity
% share of Total Capital
9.4%
81.5%
Risk-free rate
4.3%
Beta
1.1
Equity Risk Premium
4.6%
Country risk premium
0.0%
Cost of Debt (after-tax)
% share of Total Capital
0.2%
18.5%
Average Cost of Debt
0.3%
Effective Tax Rate
14.3%
WACC
7.7%

WACC dynamics

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CAT Cost of Equity

Recent Cost of Equity calculation

as of Mar 07, 2025
Risk-free rate
4.3%
Beta
1.1
Equity risk premium
4.6%
Country risk premium
0.0%
Cost of Equity
9.4%

Cost of Equity dynamics

CAT vs Peer Set: Discount Rate Comparison

WACC
Cost of Equity

General

Discount rate

financials

Company name

Revenue growth

EPS growth

Net Income margin

Caterpillar Inc. logo
Caterpillar Inc.CAT
7.7%
(3.4%)
9.5%
16.7%
Median Peer Set
8.4%
(3.6%)
(8.2%)
8.1%
REV Group, Inc. logo
REV Group, Inc.REVG
10.5%
(9.8%)
513.0%
10.8%
AGCO Corporation logo
AGCO CorporationAGCO
10.2%
13.9%
31.4%
8.1%
Terex Corporation logo
Terex CorporationTEX
9.6%
(0.5%)
(34.7%)
6.5%
Alamo Group Inc. logo
Alamo Group Inc.ALG
9.3%
(3.6%)
(15.1%)
7.1%
Deere & Company logo
Deere & CompanyDE
8.4%
(26.9%)
(26.1%)
15.9%
PACCAR Inc logo
PACCAR IncPCAR
8.4%
(10.1%)
(9.8%)
13.2%
Oshkosh Corporation logo
Oshkosh CorporationOSK
8.1%
16.5%
245.3%
6.2%
Lindsay Corporation logo
Lindsay CorporationLNN
7.0%
(9.9%)
(8.2%)
10.9%
Columbus McKinnon Corporation logo
Columbus McKinnon CorporationCMCO
5.5%
8.3%
(4.1%)
4.6%

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FAQ

What is Caterpillar Inc.'s discount rate as of Mar 07, 2025?

As of Mar 07, 2025, Caterpillar Inc.'s discount rate is 7.67%. This rate is determined based on the weighted average cost of capital (WACC) and the cost of equity, factoring in Caterpillar Inc.'s capital structure and risk profile.

What is Caterpillar Inc.'s weighted average cost of capital (WACC)?

Caterpillar Inc.'s WACC as of Mar 07, 2025, is 7.67%. This value is calculated by blending the cost of debt and cost of equity, reflecting the company’s overall cost of financing its operations.

What is Caterpillar Inc.'s cost of equity?

Caterpillar Inc.'s cost of equity is 9.4%, as of Mar 07, 2025. This is the return that shareholders expect based on the stock's risk level and market conditions, used to calculate the discount rate for valuing future cash flows.