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STOCK COMPARISON

Caterpillar vs Volvo AB: Fair Value & Quality

Both stocks run through our valuation models. Here is how Caterpillar (CAT) and Volvo AB (VLVLY) compare, as of Sep 22, 2026.

As of Sep 22, 2026, Fair Value Calculator sees Volvo AB as the less overvalued of the two: Caterpillar trades at $809 versus a fair value of $308 (-62%), while Volvo AB trades at $33.83 versus $26.68 (-21%).
Caterpillar
CAT · USD · Industrials
-62%
upside to fair value
overvalued
Price$809
Fair Value$308
Quality65/100
Volvo AB
VLVLY · USD · Industrials
-21%
upside to fair value
overvalued
Price$33.83
Fair Value$26.68
Quality56/100
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Head-to-head numbers

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

CaterpillarVolvo AB
Valuation
40.8×P/E (TTM)20.2×
6.11×P/S (TTM)1.47×
20.27×P/B4.06×
31.1×EV/EBITDA14.7×
2.25×PEG1.35×
−61.9%Fair value upside−21.1%
0.7%Dividend yield2.8%
$6.04Dividend per share—
Profitability
18%Operating margin0%
1.52×EBIT margin trend (5Y)1.17×
51%Return on equity17%
9%Return on assets4%
Growth
22%Revenue growth (YoY)-9%
4.4%Avg. growth/yr (3Y)0.4%
10.1%Avg. growth/yr (5Y)7.2%
+12.7%Value creation/yr+3.8%
Balance & size
10.9×Interest coverage (EBIT/interest)25.0×
1.44×Debt / equity0.77×
$432BMarket cap$76B
healthyGrowth qualitymixed

Volvo AB leads: 7 to 9 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 Volvo ABof which business quality 52 · market factors 59
ProfitabilityMargins and returns on capital today
61
47
Quality GrowthAre margins and returns improving?
22
26
CashflowEarnings quality: real cash, not paper profit
68
41
Fin. StrengthBalance sheet, leverage, solvency risk
51
44
InvestmentDisciplined investing over empire-building
72
90
Low VolatilityCalm price path (market factor)
32
64
MomentumPrice trend over the last 3–12 months (market factor)
62
55
52W MomentumDistance to the 52-week high (market factor)
81
62
Net IssuanceShare count: buybacks or dilution?
100
82

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 $809Volvo ABPrice $33.83
DCF Models-55%below the price$365+756%above the price$289
Earnings-Based-81%below the price$151+283%above the price$130
Dividend Discount-86%below the price$111+782%above the price$298
Multiples-61%below the price$314+841%above the price$318
Asset-Based-96%below the price$31.01+74%above the price$58.79
Growth DCF-60%below the price$326+557%above the price$222
Economic Profit-73%below the price$220+346%above the price$151
Growth Earnings-55%below the price$361+833%above the price$315
Minimum-96%below the price$31.01+74%above the price$58.79
Maximum-55%below the price$365+841%above the price$318
Median-67%below the price$267+657%above the price$256
Geometric mean-77%below the price$188+481%above the price$196

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.

Volvo AB: 0 of 26 models see the stock below the current price.

Scenario ranges

From our cautious bear scenario to the optimistic bull scenario. The white tick is the current price (value above it), the green tick the fair value (value below it): if the price sits left of the fair value, there is room to rise.

Caterpillar
Price $809
Fair Value $308
Bear $192Bull $426
Volvo AB
Price $33.83
Fair Value $26.68
Bear $15.04Bull $41.46

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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%

Volvo AB · Industrials

Quality score56 · above median
Fair value upside-21% · below median

Bottom line

As of Sep 22, 2026, Fair Value Calculator sees Volvo AB as the less overvalued of the two: Caterpillar trades at $809 versus a fair value of $308 (-62%), while Volvo AB trades at $33.83 versus $26.68 (-21%).

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

See the full analysis →
Caterpillar · Volvo AB

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