Caterpillar Inc P/B Ratio
Data as of October 02, 2026
P/B Ratio
18.04
Stock Price
$826.35
Book Value/Share
$45.82
Sector
Machinery
How It's Calculated
18.04 = $826.35 ÷ $45.82
What This Means
Caterpillar Inc's P/B ratio of 18.04 is above 6. Asset-light business models and unrecognized intangible assets can make book value a limited denominator; the multiple alone does not determine fair value.
About Caterpillar Inc
Caterpillar Inc (CAT) operates in the Machinery sector, specifically in Machinery. With a market capitalization of about $374.29B, it ranks as a mega-cap stock — one of the largest publicly traded companies.
Shares recently traded near $826.35, within a 52-week range of $470.24 to $1073.46 (-23.0% from the high, +75.7% from the low). Beta of 1.60 suggests the stock has been more volatile than the broader market.
Trailing profit margin is about 14.5%, signaling a solid profit margin for its industry.
Understanding This Metric
The price-to-book ratio compares market price to net asset value per share. For Caterpillar Inc, P/B is especially useful when earnings are volatile or temporarily depressed. In Machinery, asset-heavy business models often anchor closer to book value, while asset-light models may trade far above book.
Sector Comparison
Among Machinery names on our S&P 100 coverage, Caterpillar Inc's P/B ratio of 18.04 can be compared with peers such as DE (6.95). Sector context helps interpretation, but each company's growth profile and balance sheet differ — use multiple metrics before drawing conclusions. View all Machinery stocks.
Key Takeaways
- CAT is grouped in the Machinery sector for peer comparisons.
- Recent beta of 1.60 suggests higher-than-market price sensitivity.
- Trailing profit margin of 14.5% provides context for how much earnings support the headline multiple.
Related Tools & Guides
Explore calculators and guides connected to this metric, or view all metrics for CAT.
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Frequently Asked Questions
What does CAT's price-to-book ratio indicate?
P/B compares share price to book value per share. Caterpillar Inc's P/B of 18.04 reflects how the market prices net assets — especially relevant for asset-heavy Machinery business models.
Is 18.04 above or below book value?
A P/B above 1.0 (18.04) means the market values CAT above accounting book value — often due to brands, growth, or intangible assets.
How does P/B compare within Machinery?
Peer P/B levels in Machinery (e.g. DE (6.95)) provide context; asset-light vs asset-heavy models differ materially.
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