PEG Ratio
Updated 126h ago
Sector Performance
70th percentileCAT
1.93x
Sector Median
0.94x
Sector Avg
3.03x
Deep Analysis
The current PEG ratio of 1.93x means that for every 1% of expected earnings growth, investors are paying $1.93 for each dollar of earnings — a higher PEG suggests the stock may be expensive relative to its growth rate.
Compared to sector peers, this 1.93x sits well above the sector median of 0.97x, placing CAT at the 70th percentile among those peers. Trend data are limited: year-over-year change is not available, but quarter-over-quarter the PEG has risen 7.8% from 1.79x to 1.93x. The combination of an above-median level and a rising trend points to increasing valuation risk, as the stock is becoming more expensive relative to growth expectations. This metric directly supports the overall CAUTIOUS verdict — a PEG far above the sector median that is climbing quarter-over-quarter reinforces concerns about overvaluation.
Frequently Asked Questions
What does the PEG Ratio tell investors about CAT?
The PEG ratio adjusts P/E for expected growth. A PEG below 1.0 may signal undervaluation; above 2.0 may suggest the growth story is priced in.
How is the PEG Ratio calculated?
PEG Ratio is calculated as: P/E Ratio / EPS Growth Rate.
Who are CAT's closest peers by PEG Ratio?
The closest peers by PEG Ratio include: NUE (0.06x), VLO (0.06x), NKE (0.05x), NCLH (0.05x), MKTX (0.05x).
The Formula
P/E Ratio / EPS Growth Rate
Why It Matters
The PEG ratio adjusts P/E for expected growth. A PEG below 1.0 may signal undervaluation; above 2.0 may suggest the growth story is priced in.
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1.93x
Sector Median
0.94x
Sector Avg
3.03x
How CAT's PEG Ratio compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.