Caterpillar Stock Market Value

CAT Stock  USD 366.43  1.78  0.49%   
Caterpillar's market value is the price at which a share of Caterpillar trades on a public exchange. It measures the collective expectations of Caterpillar investors about its performance. Caterpillar is selling for under 366.43 as of the 29th of March 2024; that is 0.49 percent increase since the beginning of the trading day. The stock's last reported lowest price was 363.53.
With this module, you can estimate the performance of a buy and hold strategy of Caterpillar and determine expected loss or profit from investing in Caterpillar over a given investment horizon. Check out Caterpillar Correlation, Caterpillar Volatility and Caterpillar Alpha and Beta module to complement your research on Caterpillar.
For more information on how to buy Caterpillar Stock please use our How to Invest in Caterpillar guide.
Symbol

Caterpillar Price To Book Ratio

Is Caterpillar's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Caterpillar. If investors know Caterpillar will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Caterpillar listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.893
Dividend Share
5.1
Earnings Share
20.13
Revenue Per Share
131.336
Quarterly Revenue Growth
0.029
The market value of Caterpillar is measured differently than its book value, which is the value of Caterpillar that is recorded on the company's balance sheet. Investors also form their own opinion of Caterpillar's value that differs from its market value or its book value, called intrinsic value, which is Caterpillar's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Caterpillar's market value can be influenced by many factors that don't directly affect Caterpillar's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Caterpillar's value and its price as these two are different measures arrived at by different means. Investors typically determine if Caterpillar is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Caterpillar's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Caterpillar 'What if' Analysis

In the world of financial modeling, what-if analysis is part of sensitivity analysis performed to test how changes in assumptions impact individual outputs in a model. When applied to Caterpillar's stock what-if analysis refers to the analyzing how the change in your past investing horizon will affect the profitability against the current market value of Caterpillar.
0.00
04/09/2022
No Change 0.00  0.0 
In 1 year 11 months and 21 days
03/29/2024
0.00
If you would invest  0.00  in Caterpillar on April 9, 2022 and sell it all today you would earn a total of 0.00 from holding Caterpillar or generate 0.0% return on investment in Caterpillar over 720 days. Caterpillar is related to or competes with Hyster Yale, Lion Electric, Titan International, and Wabash National. Caterpillar Inc. manufactures and sells construction and mining equipment, diesel and natural gas engines, and industria... More

Caterpillar Upside/Downside Indicators

Understanding different market momentum indicators often help investors to time their next move. Potential upside and downside technical ratios enable traders to measure Caterpillar's stock current market value against overall market sentiment and can be a good tool during both bulling and bearish trends. Here we outline some of the essential indicators to assess Caterpillar upside and downside potential and time the market with a certain degree of confidence.

Caterpillar Market Risk Indicators

Today, many novice investors tend to focus exclusively on investment returns with little concern for Caterpillar's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Caterpillar's standard deviation. In reality, there are many statistical measures that can use Caterpillar historical prices to predict the future Caterpillar's volatility.
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Caterpillar's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Hype
Prediction
LowEstimatedHigh
329.79368.91370.27
Details
Intrinsic
Valuation
LowRealHigh
341.09342.45403.07
Details
Naive
Forecast
LowNextHigh
365.21366.57367.92
Details
31 Analysts
Consensus
LowTargetHigh
259.30284.95316.29
Details
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Caterpillar. Your research has to be compared to or analyzed against Caterpillar's peers to derive any actionable benefits. When done correctly, Caterpillar's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in Caterpillar.

Caterpillar Backtested Returns

Caterpillar appears to be very steady, given 3 months investment horizon. Caterpillar secures Sharpe Ratio (or Efficiency) of 0.28, which signifies that the company had a 0.28% return per unit of risk over the last 3 months. We have found twenty-eight technical indicators for Caterpillar, which you can use to evaluate the volatility of the firm. Please makes use of Caterpillar's Mean Deviation of 1.02, downside deviation of 1.57, and Risk Adjusted Performance of 0.1594 to double-check if our risk estimates are consistent with your expectations. On a scale of 0 to 100, Caterpillar holds a performance score of 22. The firm shows a Beta (market volatility) of 1.68, which signifies a somewhat significant risk relative to the market. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Caterpillar will likely underperform. Please check Caterpillar's value at risk, as well as the relationship between the skewness and day median price , to make a quick decision on whether Caterpillar's price patterns will revert.

Auto-correlation

    
  0.32  

Below average predictability

Caterpillar has below average predictability. Overlapping area represents the amount of predictability between Caterpillar time series from 9th of April 2022 to 4th of April 2023 and 4th of April 2023 to 29th of March 2024. The more autocorrelation exist between current time interval and its lagged values, the more accurately you can make projection about the future pattern of Caterpillar price movement. The serial correlation of 0.32 indicates that nearly 32.0% of current Caterpillar price fluctuation can be explain by its past prices.
Correlation Coefficient0.32
Spearman Rank Test0.47
Residual Average0.0
Price Variance1529.47

Caterpillar lagged returns against current returns

Autocorrelation, which is Caterpillar stock's lagged correlation, explains the relationship between observations of its time series of returns over different periods of time. The observations are said to be independent if autocorrelation is zero. Autocorrelation is calculated as a function of mean and variance and can have practical application in predicting Caterpillar's stock expected returns. We can calculate the autocorrelation of Caterpillar returns to help us make a trade decision. For example, suppose you find that Caterpillar has exhibited high autocorrelation historically, and you observe that the stock is moving up for the past few days. In that case, you can expect the price movement to match the lagging time series.
   Current and Lagged Values   
       Timeline  

Caterpillar regressed lagged prices vs. current prices

Serial correlation can be approximated by using the Durbin-Watson (DW) test. The correlation can be either positive or negative. If Caterpillar stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Caterpillar stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Caterpillar stock over time.
   Current vs Lagged Prices   
       Timeline  

Caterpillar Lagged Returns

When evaluating Caterpillar's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Caterpillar stock have on its future price. Caterpillar autocorrelation represents the degree of similarity between a given time horizon and a lagged version of the same horizon over the previous time interval. In other words, Caterpillar autocorrelation shows the relationship between Caterpillar stock current value and its past values and can show if there is a momentum factor associated with investing in Caterpillar.
   Regressed Prices   
       Timeline  

Caterpillar Investors Sentiment

The influence of Caterpillar's investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in Caterpillar. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock market does not have solid backing from leading economists and market statisticians.
Investor biases related to Caterpillar's public news can be used to forecast risks associated with an investment in Caterpillar. The trend in average sentiment can be used to explain how an investor holding Caterpillar can time the market purely based on public headlines and social activities around Caterpillar. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Caterpillar's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Caterpillar's and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average Caterpillar's news discussions. The higher the estimated score, the more favorable is the investor's outlook on Caterpillar.

Caterpillar Implied Volatility

    
  21.4  
Caterpillar's implied volatility exposes the market's sentiment of Caterpillar stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Caterpillar's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Caterpillar stock will not fluctuate a lot when Caterpillar's options are near their expiration.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Caterpillar in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Caterpillar's short interest history, or implied volatility extrapolated from Caterpillar options trading.

Pair Trading with Caterpillar

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Caterpillar position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Caterpillar will appreciate offsetting losses from the drop in the long position's value.

Moving against Caterpillar Stock

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The ability to find closely correlated positions to Caterpillar could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Caterpillar when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Caterpillar - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Caterpillar to buy it.
The correlation of Caterpillar is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Caterpillar moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Caterpillar moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Caterpillar can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching
When determining whether Caterpillar is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Caterpillar Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Caterpillar Stock. Highlighted below are key reports to facilitate an investment decision about Caterpillar Stock:
Check out Caterpillar Correlation, Caterpillar Volatility and Caterpillar Alpha and Beta module to complement your research on Caterpillar.
For more information on how to buy Caterpillar Stock please use our How to Invest in Caterpillar guide.
Note that the Caterpillar information on this page should be used as a complementary analysis to other Caterpillar's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.

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When running Caterpillar's price analysis, check to measure Caterpillar's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Caterpillar is operating at the current time. Most of Caterpillar's value examination focuses on studying past and present price action to predict the probability of Caterpillar's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Caterpillar's price. Additionally, you may evaluate how the addition of Caterpillar to your portfolios can decrease your overall portfolio volatility.
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Caterpillar technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.
A focus of Caterpillar technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of Caterpillar trading pattern rather than external drivers such as economic, fundamental, or social events. It is believed that price action tends to repeat itself due to investors' collective, patterned behavior. Hence technical analysis focuses on identifiable price trends and conditions. More Info...