Enterprise Value (EV)
Current Enterprise Value (EV)
Caterpillar Inc., current enterprise value calculation
| Current share price (P) | $388.21 |
| No. shares of common stock outstanding | 471,041,788 |
| US$ in millions | |
| Common equity (market value)1 | 182,863) |
| Add: Noncontrolling interests (per books) | 3) |
| Total equity | 182,866) |
| Add: Short-term borrowings (per books) | 4,393) |
| Add: Long-term debt due within one year (per books) | 6,665) |
| Add: Long-term debt due after one year (per books) | 27,351) |
| Total equity and debt | 221,275) |
| Less: Cash and cash equivalents | 6,889) |
| Enterprise value (EV) | 214,386) |
Based on: 10-K (reporting date: 2024-12-31).
1 Common equity (market value) = Share price × No. shares of common stock outstanding
= 388.21 × 471,041,788
Historical Enterprise Value (EV)
Caterpillar Inc., EV calculation
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 Data adjusted for splits and stock dividends.
2 Closing price as at the filing date of Caterpillar Inc. Annual Report.
3 2024 Calculation
Common equity (market value) = Share price × No. shares of common stock outstanding
= 353.32 × 477,932,024
- Equity Trends
- The common equity measured at market value demonstrated a consistent upward trajectory over the observed five-year period. Beginning at approximately $110.3 billion in 2020, it experienced a slight decrease in 2021 but rebounded significantly thereafter, reaching about $168.9 billion by the end of 2024. This growth suggests increasing investor confidence and possibly enhanced market capitalization.
- Total equity mirrored this pattern closely, starting at $110.4 billion in 2020, dipping marginally in 2021, then progressively rising to $168.9 billion by 2024. The close alignment between common equity (market value) and total equity indicates a steady capital structure with little divergence between accounting and market valuations over time.
- Capital Structure Analysis
- The sum of total equity and debt displayed a stable increase through the time frame, moving from approximately $147.5 billion in 2020 to $207.3 billion by 2024. This upward trend reflects expanded overall financing, which may be driven by growth initiatives or acquisitions. The increase in liabilities and equity together signals the company's expanding scale and potential investment in assets.
- Enterprise Value Development
- The enterprise value (EV), representing the total company valuation including debt and market capitalization, followed a growth trend similar to that of total equity and debt. EV rose from $138.2 billion in 2020 to a peak of $200.4 billion in 2024. This ascent indicates an increasing overall valuation, possibly driven by improved operational performance or market conditions.
- Comparative Observations
- The parallel growth paths of total equity, total equity plus debt, and enterprise value imply balanced expansion in both equity and debt financing. The stronger increases from 2022 onward suggest acceleration in company value and invested capital, possibly reflecting positive market sentiment or successful strategic execution.
- The marginal drop in equity values during 2021 may signal a temporary contraction or market adjustment period, but subsequent sustained growth indicates recovery and expansion.