Caterpillar Stock Looks Expensive: Here Are 3 Reasons It's Still Cheap
Shares of Caterpillar (NYSE: CAT) reached a new intraday high last Wednesday, briefly passing the $200 per share mark. This occurred following a market-beating year for Caterpillar in 2020.
At face value, Caterpillar's stock looks way too expensive. Its P/E ratio is over 32, and its price-to-sales ratio is around 2.5, the highest levels for the company in three years and above the market average for industrial stocks. But Caterpillar has an ace up its sleeve that makes its valuation cheap even at these levels, and worth adding to your portfolio right now.
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Source Fool.com