CAT Caterpillar

Dated 05 Mar 2017

Fundamental

Price

Typical P/E ratio: 16

Intrinsic value:

CAT is a construction equipment company. Earning growth rate is estimated to be 25.14%.

  • Determine a future stock price.
    Future stock price = Future EPS x Future P/E Ratio
    Future EPS = Present EPS x (1+ EPS growth rate)^number of years
    = $4.37 x (1 + 25.14%)^5 years
    = $13.34
    Future P/E Ratio is 16.
    Therefore, Future stock price = $13.34 x 16 = $213.44
  • Present Intrinsic Value = Future stock price / (1 + MARR)^number of years
    = $231 / (1 + 15%)^5 years
    = $116

Earnings Date

  1. 26 Jan
  2. 22 Apr
  3. 26 Jul
  4. 25 Oct

Seasonal

Month Apr May Sep Oct Dec Dec
Week 16 18-20 38-39 40-44 51 53
Trend

Technical

Support Resistance Level

$23, $42, $60, $79-80, $97, $116

Logs

2017-03-17

Short Float 4.91%
Forward P/E 21.08
Fundamental nothing.
Technically seems very flat. Not much coming news.
Don’t trade.