Caterpillar Inc. Message Board
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CAT valuation
Using conservative estimates and projections, I ran a quick discounted cash flow model on CAT stock. My results show the shares to be currently overvalued, relative to the company's future free cash flow generation.
I put a fair value of $114.35 on the stock.-
Ditto!
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If you meant to write "undevalued" then why did you put a sell rating on the stock????
- 2 Replies to lucky.ecv13
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Oops!
I'm sorry.
I need to do a better job of clicking the right check box before clicking the post message button. -
Maybe he works for Sterne Agee who lowered their target on JOYG due to them raising 2012 Estimates and lowered PE.
Yeah thats right they lowered based on Joy increasing its earnings estimates.
Go figure.
http://www.benzinga.com/analyst-ratings/analyst-color/11/09/1896157/update-sterne-agee-lowers-pt-on-joy-global-to-93#ixzz1WiE06YHa
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Yes, you are correct.
Over the last many years, I have made many fair valuation postings, with the intention of providing others with a sort of starting point for doing their own due diligence and to share what I will be potentially buying or selling. -
I mis-typed. I met to write "undervalued".
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Please don't!
- 2 Replies to benwaw58
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Not to worry...
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Hey where's the Ben that likes to listen to all points of view? I happen to agree with his $115 target and I'm just curious how he got there.
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Perhaps you meant undervalued? How about sharing your "conservative estimates"?
- 1 Reply to richoncat
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I'm sorry. I mis-typed. I met to write "undervalued".
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irrelevant!
- 1 Reply to benwaw58
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No, not really. Valuations like these are an important tool to help in deciding whether to buy a stock.
No, discounted cash flow models aren't perfect and they can have flaws. However, if one uses conservative numbers, cash flow models do lend insight into a stock's "true" price -- versus what Mr. Market says the stock is worth.
Also, these types of valuations are not a substitute for proper due diligence reseach.
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Huh? Overvalued at $85, target $114? Great post thanks for your considerable insight. Where is the spam link?
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its currently overvalued at 85 and your price target is 114?
ok, thanks.- 1 Reply to toothtoothtooth
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Upon what are you basing your opinion?
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