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STOCK COMPARISON

Caterpillar vs Paccar: Fair Value & Quality

Both stocks run through our valuation models. Here is how Caterpillar (CAT) and Paccar (PCAR) compare, as of Sep 5, 2026.

As of Sep 5, 2026, Fair Value Calculator sees Paccar as the less overvalued of the two: Caterpillar trades at $800 versus a fair value of $308 (-62%), while Paccar trades at $125 versus $94.80 (-24%).
Caterpillar
CAT · USD · Industrials
-62%
upside to fair value
overvalued
Price$800
Fair Value$308
Quality65/100
Paccar
PCAR · USD · Industrials
-24%
upside to fair value
overvalued
Price$125
Fair Value$94.80
Quality52/100
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Head-to-head numbers

Green value = the better side for that row (for valuation multiples: lower = cheaper).

CaterpillarPaccar
Valuation
40.1×P/E (TTM)27.0×
6.11×P/S (TTM)2.39×
20.27×P/B3.45×
31.1×EV/EBITDA21.2×
2.25×PEG1.28×
−61.5%Fair value upside−23.9%
0.8%Dividend yield1.1%
$6.04Dividend per share$1.32
Profitability
18%Operating margin10%
1.52×EBIT margin trend (5Y)1.17×
51%Return on equity13%
9%Return on assets4%
Growth
22%Revenue growth (YoY)-9%
4.4%Avg. growth/yr (3Y)-0.4%
10.1%Avg. growth/yr (5Y)8.7%
+12.8%Value creation/yr+5.9%
Balance & size
10.9×Interest coverage (EBIT/interest)8.5×
1.44×Debt / equity0.57×
$432BMarket cap$66B
healthyGrowth qualitymixed

Even match: 8 to 8 metric wins.

Dash = not meaningfully computable, for example with negative equity.

Quality in detail

The quality score, broken down into the same factor families as on the stock page, 0 to 100 per family.

Caterpillarof which business quality 62 · market factors 58 Paccarof which business quality 54 · market factors 66
ProfitabilityMargins and returns on capital today
61
39
Quality GrowthAre margins and returns improving?
22
9
CashflowEarnings quality: real cash, not paper profit
68
64
Fin. StrengthBalance sheet, leverage, solvency risk
51
69
InvestmentDisciplined investing over empire-building
72
55
Low VolatilityCalm price path (market factor)
32
68
MomentumPrice trend over the last 3–12 months (market factor)
62
58
52W MomentumDistance to the 52-week high (market factor)
80
77
Net IssuanceBuybacks instead of dilution
100
80

What the models say

How far the median fair value (base case) per model family sits from the current price, in percent. The amount in the currency of the trading venue is shown underneath.

above the price, more than 15% above close to the price, 85% to 115% of the price below the price, more than 15% below

Model familyCaterpillarPrice $800PaccarPrice $125
DCF Models-54%below the price$365-20%below the price$99.49
Earnings-Based-81%below the price$151-67%below the price$41.37
Dividend Discount-86%below the price$111-39%below the price$75.80
Multiples-61%below the price$314-33%below the price$83.51
Asset-Based-96%below the price$31.01-80%below the price$24.52
Growth DCF-59%below the price$326-22%below the price$96.76
Economic Profit-72%below the price$220-63%below the price$46.03
Growth Earnings-55%below the price$361-43%below the price$70.95
Minimum-96%below the price$31.01-80%below the price$24.52
Maximum-54%below the price$365-20%below the price$99.49
Median-67%below the price$267-41%below the price$73.37
Geometric mean-77%below the price$188-51%below the price$61.39

Minimum, maximum, median and geometric mean refer to the family values in this table. Geometric because deviations are ratios: half the price and twice the price average to 100%, not 125%.

Caterpillar: 26 of 26 models see the stock below the current price.

Paccar: 26 of 26 models see the stock below the current price.

Scenario ranges

From our cautious bear case to the optimistic bull case. The white tick is the current price: left of fair value means room to run.

Caterpillar
Bear $192Fair Value $308Bull $403
$800 = current price (white tick)
Paccar
Bear $61.27Fair Value $94.80Bull $119
$125 = current price (white tick)

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Ranked within their sector

Where each stock sits within its sector peer group. Band = middle 50% of peers, tick = median, dot = this stock.

Caterpillar · Industrials

Quality score65 · Top 25%
Fair value upside-62% · bottom 25%

Paccar · Industrials

Quality score52 · below median
Fair value upside-24% · below median

Bottom line

As of Sep 5, 2026, Fair Value Calculator sees Paccar as the less overvalued of the two: Caterpillar trades at $800 versus a fair value of $308 (-62%), while Paccar trades at $125 versus $94.80 (-24%).

Caterpillar has the higher quality score (65/100).

See the full analysis →
Caterpillar · Paccar

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A model-based valuation snapshot from 26 models. Values change with price and fundamentals; the date shown above applies.