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Signal Ledger valuation · CAT

Caterpillar Inc

What the shares are worth today on our research (management’s own targets for each business): every line valued at the end of FY2030, net debt rolled forward, then discounted back to Jun 30, 2026.

Signal Ledger valuation$409.66−42% vs $704.05
Business value at FY2030
$225B
FY2030 revenue
$99B
FY2030 EPS · P/E
$40.24 · 14×
Discount rate (WACC · equity)
9.67% · 9.87%

Researched Oct 23, 2026 from SEC filing 0000018230-26-000046 · price $704.05 at research time · Valuation methodology

Latest quarter in this research: Q2 2026

Reported Aug 4, 2026 for the quarter to Jun 30, 2026 (company release ↗). This valuation already reflects these results (researched Oct 23, 2026).

Revenue$20.5B
Operating income$4.29B20.9% margin
Net income$3.59B
Diluted EPS$7.77
SegmentRevenuevs a year agoOperating incomeMargin
Power & Energy (external)$6.79B+17%——
Construction Industries (external)$8.26B+35%——
Resource Industries (external)$4.57B+21%——
Other (external)$15M+15%——
Financial Products (net)$0.96B+7%——
  • Sales increased 24%; operating margin 20.9%.
  • External revenue table removes intersegment transfers.
  • Operating profit includes $392M expected tariff recoveries.

What each business is worth

BusinessModelFY2030 revenueValue todayPer share2030 multipleValue from beyond FY2030
Power & EnergyMargin$60B$138B$301.1111.7× EBIT61%
Construction IndustriesMargin$30B$51B$110.987.7× EBIT50%
Resource IndustriesMargin$15B$23B$50.348.4× EBIT53%
OtherMargin$0.3B$0B$0.00—0%
Financial ProductsReturn on equity (residual income)—$10B$22.511.9× P/B29%
Company costsHead-office costs no segment carries, valued as one negative businessCost line—−$26B−$55.54—59%
All businesses$99B$193B$419.98

From 2030 back to today

  1. Enterprise value at end of FY2030$225B
  2. Plus net cash at FY2030$40B
  3. Equity value at FY2030$265B
  4. ÷ (1 + 9.87%)^4.5 years at the cost of equity$173B
  5. + dividends paid on the way, discounted$10B

This reconciliation checks the published Signal Ledger valuation against the net-debt path. The difference is 2.5%, inside our 5% tolerance.

From businesses to one share

  1. All businesses, valued today$193B
  2. − borrowings$11B
  3. − finance leases$0B
  4. + cash and short-term investments$5.9B
  5. ÷ diluted shares0.460B
  6. Signal Ledger valuation$409.66

The financing arm is valued on its own equity, so the borrowings that fund its loans and leases sit inside that value; only the operating businesses' borrowings are deducted here.

Year by year to FY2030

Fiscal yearRevenueEBITDACapexFree cash flowNet debt at year end
FY2026$83B$17B$3.6B$9.4B$1.6B
FY2027$86B$18B$3.7B$11B$6.1B cash
FY2028$90B$20B$3.9B$12B$15B cash
FY2029$94B$22B$4.1B$13B$26B cash
FY2030$99B$25B$4.3B$15B$40B cash

What must be true

  • Power & Energy grows revenue from $37.7B in FY2026 to $60.1B in FY2030 (1.6×).
  • Construction Industries revenue shrinks from $33.8B in FY2026 to $30.5B in FY2030 (-9.8%).
  • Resource Industries holds revenue roughly flat, from $14.9B in FY2026 to $15.2B in FY2030.
  • Other holds revenue roughly flat, from $0.3B in FY2026 to $0.3B in FY2030.
  • Financial Products grows revenue from $4.5B in FY2026 to $4.8B in FY2030 (1.1×).
  • Power & Energy raises its EBIT margin from 19.9% to 23.9%.
  • Construction Industries raises its EBIT margin from 18.7% to 22.7%.
  • Resource Industries raises its EBIT margin from 15.9% to 19.9%.
  • Other holds its EBIT margin at 0.0%.
  • The company spends $19.6B of capital expenditure through FY2030.
  • Net debt peaks at $4.7B in FY2025 and stays financeable.
  • Financial Products keeps earning 16.4% on its equity, against a 9.87% cost of equity.

What the price implies

To reach $704.05 at our discount rate, Caterpillar Inc would need about $193.4B of FY2030 sales (growth of about 22.2% a year from FY2026) with 22.9% GAAP EBIT margin — versus $106.1B and 22.9% GAAP EBIT margin in our research.

Sales and margins here cover operating lines only; financial lines stay fixed. These sales figures are not total company revenue.

At the research price of $704.05 (2026-10-23), the price asks more than our assumptions overall. These are operating requirements at that price, not additional valuations or forecasts.

If sales and margins changed together

Each row matches the same research price at our unchanged discount rate, by scaling every operating line's margin by one common factor. Sales cover margin and capacity lines only; other valuation lines stay fixed. Margins are revenue-weighted within each metric, before separately modeled corporate costs and eliminations. The conclusion uses the row at our research margins when sales alone can match the price, otherwise the solved row needing the least sales growth; this is a trade-off between growth and profitability, not a forecast.

FY2030 sales factorFY2030 salesFY2026–30 CAGRRequired FY2030 marginRequirement
1.50×$159.1B16.4%
26.4% GAAP EBIT
Within margin guardrails
1.82×At research margins$193.4B22.2%
22.9% GAAP EBIT
Within margin guardrails
2.00×$212.2B25.1%
21.5% GAAP EBIT
Within margin guardrails
3.00×$318.3B38.4%
16.3% GAAP EBIT
Within margin guardrails

CAGR uses $86.7B of same-scope FY2026 sales from the published model or its sourced research base, over four fiscal years. “Within margin guardrails” checks numeric limits only, not commercial plausibility. Each line and year must stay at or below 50.0% GAAP EBIT and 100% EBITDA, or our research margin where that is higher; capacity EBIT uses the engine's equipment depreciation. Unsolved margins are not extrapolated.

Implied discount rate
6.5%

The WACC that makes model value equal the price, shifting WACC and cost of equity by the same amount. Model: 9.7% WACC · 9.9% cost of equity.

All-business FY2030 sales factor
1.82×

FY2030 revenue would need to reach $193.4B (model: $106.1B) across the margin and capacity businesses. FY1 stays fixed; the sales change ramps to FY2030 and stays at that factor thereafter.

If only one business changed

Businesses with margin or capacity revenue paths, ordered by value today. Revenue and margin are separate alternatives; these requirements are not added together.

Power & Energy

Revenue alone
FY2030 revenue would need to reach $127.6B (model: $60.1B).
Margin alone

FY2030 EBIT margin would need to reach 44.8% (model: 23.9%).

Construction Industries

Revenue alone
FY2030 revenue would need to reach $126.5B (model: $30.5B).
Margin alone

FY2030 EBIT margin would need to reach 74.6% (model: 22.7%).

Resource Industries

Revenue alone
This business alone cannot get there within the search range.
Margin alone

FY2030 EBIT margin would need to reach 118.8% (model: 19.9%).

Other

Revenue alone
This business alone cannot get there within the search range.
Margin alone
This business alone cannot get there within the search range.

Mechanical requirements, not forecasts. The separate sales-only and single-business factors are searched from 0.1× to 6×; an unsolved comparison means this business alone cannot get there within those bounds. Single-business revenue changes apply from FY2 onward; margin changes scale the full EBIT or EBITDA margin path. Mixed groups show revenue-weighted EBIT and EBITDA margins separately. Requirements above 100% are not feasible margins. Joint rows instead search non-negative uniform margin factors only up to the EBIT/EBITDA guardrails; the entire margin path scales, including post-FY2030 convergence. Sales and margins change together only in that table. The rate search runs from the largest terminal growth rate plus 0.5 percentage points to 30% WACC.

The discount rate

Cost of equity
9.87%

r_f 3.87% (5-year average 10-year Treasury yield 3.87% (spot 5.13% on 2026-10-21)) + β 1.20 after Blume adjustment × 5%, rounded to 0.01% (1bp)

WACC
9.67%

methodology §4.5: market-weighted WACC, not rounded

10-year Treasury · model / spot
3.87% · 5.13%

The model uses the recorded 5-year average Treasury yield. The spot yield is shown for context.

Every input, with its source

Show 65 inputs · reported, guidance and rule-based
InputValueBasisWhy
Revenue FY2026Power & Energy$37.7BReportedtarget (methodology §4.2), growth 17.1% s25.q4cdn.com ↗
Revenue FY2030Power & Energy$60.1BGuidancetarget (methodology §4.2), growth 12.4% s25.q4cdn.com ↗
EBIT margin FY2030Power & Energy23.9%Rulelinear path to 23.9% by FY2030 (§4.3 E2: 4.0000 points = 4pp × clamp((CAGR − 1.5%) / 2%, 0, 1); revenue CAGR 13.3% to FY2030; no cited expansion evidence) sec.gov ↗
Maintenance capexPower & Energy3.8%RuleGuided MP&E capex 4-5% of EXTERNAL equipment sales, midpoint 4.5%, translated to gross denominator. Grossing sales must not also gross capital spending. sec.gov ↗
Terminal growthPower & Energy2.0%Rulemethodology §4.2 terminal growth for a mature line Valuation methodology §4.2 · Read methodology ↗
Revenue FY2026Construction Industries$33.8BReportedtarget (methodology §4.2), growth 34.8% s25.q4cdn.com ↗
Revenue FY2030Construction Industries$30.5BGuidancetarget (methodology §4.2), growth -2.5% s25.q4cdn.com ↗
EBIT margin FY2030Construction Industries22.7%Rulelinear path to 22.7% by FY2030 (§4.3 E2: 4.0000 points = 4pp × clamp((CAGR − 1.5%) / 2%, 0, 1); revenue CAGR 4.0% to FY2030; no cited expansion evidence) sec.gov ↗
Maintenance capexConstruction Industries4.4%RuleGuided MP&E capex 4-5% of EXTERNAL equipment sales, midpoint 4.5%, translated to gross denominator. Grossing sales must not also gross capital spending. sec.gov ↗
Terminal growthConstruction Industries2.0%Rulemethodology §4.2 terminal growth for a mature line Valuation methodology §4.2 · Read methodology ↗
Revenue FY2026Resource Industries$14.9BReportedtarget (methodology §4.2), growth 19.6% s25.q4cdn.com ↗
Revenue FY2030Resource Industries$15.2BGuidancetarget (methodology §4.2), growth 0.4% s25.q4cdn.com ↗
EBIT margin FY2030Resource Industries19.9%Rulelinear path to 19.9% by FY2030 (§4.3 E2: 4.0000 points = 4pp × clamp((CAGR − 1.5%) / 2%, 0, 1); revenue CAGR 4.0% to FY2030; no cited expansion evidence) sec.gov ↗
Maintenance capexResource Industries4.4%RuleGuided MP&E capex 4-5% of EXTERNAL equipment sales, midpoint 4.5%, translated to gross denominator. Grossing sales must not also gross capital spending. sec.gov ↗
Terminal growthResource Industries2.0%Rulemethodology §4.2 terminal growth for a mature line Valuation methodology §4.2 · Read methodology ↗
Revenue FY2026Other$0.3BReportedtarget (methodology §4.2), growth -1.2% s25.q4cdn.com ↗
Revenue FY2030Other$0.3BGuidancetarget (methodology §4.2), growth 0.3% s25.q4cdn.com ↗
EBIT margin FY2030Other0.0%Rulelinear path to 0.0% by FY2030 (declining line without a management target holds its latest margin) sec.gov ↗
Maintenance capexOther0.0%ReportedNo duplicate Other investment. sec.gov ↗
Terminal growthOther0.0%Rulemethodology §4.2 terminal growth for a declining line Valuation methodology §4.2 · Read methodology ↗
Common equityFinancial Products$5.2BReportedJune 2026 Financial Products equity $5.225B less $0.067B noncontrolling interests = $5.158B common equity proxy. sec.gov ↗
Return on equity FY2026Financial Products16.4%RuleFY2025 common net profit.733B=pretax.977-tax.243-NCI.001. Two-point average common equity=[(2024 4.246-.075)+(2025 4.841-.066)]/2=4.473B; ROE16.3872%. Sourced two-point approximation, replacing provisional 15% pretax proxy; includes insurance. investors.caterpillar.com ↗ · sec.gov ↗
Return on equity FY2030Financial Products16.4%Rulelatest return held without a management target (methodology §4.6) investors.caterpillar.com ↗ · sec.gov ↗
Payout ratioFinancial Products68.2%ReportedFY2025 subsidiary dividend.500B/common net profit.733B=68.2128%, supplemental cash-flow/income tables. H1FY2026 paid 0; methodology carries last full-year ratio, not future dividend guidance. investors.caterpillar.com ↗
Allocated group debt (2026-06-30)Financial Products$34.5BReportedJune 2026 consolidated face-statement Financial Products external debt: short 5.046+current 8.026+noncurrent 21.384=34.456B. Group 45.146B leaves MP&E10.690B (.035+10.655). Supplemental pre-elimination FP long 22.384 includes 1.000B internal debt; the group 1.293B elimination also includes MP&E.293B and cannot all be assigned to FP. sec.gov ↗
Allocated finance leasesFinancial Products$0.0BReportedDisclosed financing funding allocation includes finance leases, if any; do not deduct a second lease liability. sec.gov ↗
Allocated group cashFinancial Products$0.8BReportedJune cash: Financial Products.768B; consolidated 6.713 leaves 5.945B MP&E. sec.gov ↗
Terminal growthFinancial Products2.0%Rulemethodology §4.2 terminal growth for a mature line Valuation methodology §4.2 · Read methodology ↗
Share of revenue FY2026Company costs2.2%RuleAnnual cost baseline $1.534B; scales with operating revenue; full reconciliation in research sec.gov ↗
Share of revenue FY2034Company costs2.2%RuleAnnual cost baseline $1.534B; scales with operating revenue; full reconciliation in research sec.gov ↗
WACCDiscount rates9.67%Rulemethodology §4.5: market-weighted WACC, not rounded FRED DGS10 2021-10-20..2026-10-21
Cost of equityDiscount rates9.87%Ruler_f 3.87% (5-year average 10-year Treasury yield 3.87% (spot 5.13% on 2026-10-21)) + β 1.20 after Blume adjustment × 5%, rounded to 0.01% (1bp) 60 monthly returns vs SPY, 2021-09..2026-09 (adjusted closes)
Tax rateDiscount rates23.0%GuidanceLatest global estimated annual effective tax rate 23%, excluding discrete items. sec.gov ↗
Revenue eliminated FY2026Consolidation$8.0BRuleFY2026: Equipment gross-to-external adjustments and finance .773/4.382 internal share removed at modeled mix. Profit .470B is the reported NET Other income/expense methodology bucket, including internal financing effects; not intersegment sales times guessed margin. Other loss 8M in corporate costs. sec.gov ↗
Revenue eliminated FY2027Consolidation$8.7BRuleFY2027: Equipment gross-to-external adjustments and finance .773/4.382 internal share removed at modeled mix. Profit .470B is the reported NET Other income/expense methodology bucket, including internal financing effects; not intersegment sales times guessed margin. Other loss 8M in corporate costs. sec.gov ↗
Revenue eliminated FY2028Consolidation$9.6BRuleFY2028: Equipment gross-to-external adjustments and finance .773/4.382 internal share removed at modeled mix. Profit .470B is the reported NET Other income/expense methodology bucket, including internal financing effects; not intersegment sales times guessed margin. Other loss 8M in corporate costs. sec.gov ↗
Revenue eliminated FY2029Consolidation$10.5BRuleFY2029: Equipment gross-to-external adjustments and finance .773/4.382 internal share removed at modeled mix. Profit .470B is the reported NET Other income/expense methodology bucket, including internal financing effects; not intersegment sales times guessed margin. Other loss 8M in corporate costs. sec.gov ↗
Revenue eliminated FY2030Consolidation$11.5BRuleFY2030: Equipment gross-to-external adjustments and finance .773/4.382 internal share removed at modeled mix. Profit .470B is the reported NET Other income/expense methodology bucket, including internal financing effects; not intersegment sales times guessed margin. Other loss 8M in corporate costs. sec.gov ↗
Revenue eliminated FY2031Consolidation$12.7BRuleFY2031: Equipment gross-to-external adjustments and finance .773/4.382 internal share removed at modeled mix. Profit .470B is the reported NET Other income/expense methodology bucket, including internal financing effects; not intersegment sales times guessed margin. Other loss 8M in corporate costs. sec.gov ↗
Revenue eliminated FY2032Consolidation$13.8BRuleFY2032: Equipment gross-to-external adjustments and finance .773/4.382 internal share removed at modeled mix. Profit .470B is the reported NET Other income/expense methodology bucket, including internal financing effects; not intersegment sales times guessed margin. Other loss 8M in corporate costs. sec.gov ↗
Revenue eliminated FY2033Consolidation$14.7BRuleFY2033: Equipment gross-to-external adjustments and finance .773/4.382 internal share removed at modeled mix. Profit .470B is the reported NET Other income/expense methodology bucket, including internal financing effects; not intersegment sales times guessed margin. Other loss 8M in corporate costs. sec.gov ↗
Revenue eliminated FY2034Consolidation$15.3BRuleFY2034: Equipment gross-to-external adjustments and finance .773/4.382 internal share removed at modeled mix. Profit .470B is the reported NET Other income/expense methodology bucket, including internal financing effects; not intersegment sales times guessed margin. Other loss 8M in corporate costs. sec.gov ↗
Profit eliminated FY2026Consolidation$0.5BRuleFY2026: Equipment gross-to-external adjustments and finance .773/4.382 internal share removed at modeled mix. Profit .470B is the reported NET Other income/expense methodology bucket, including internal financing effects; not intersegment sales times guessed margin. Other loss 8M in corporate costs. sec.gov ↗
Profit eliminated FY2027Consolidation$0.5BRuleFY2027: Equipment gross-to-external adjustments and finance .773/4.382 internal share removed at modeled mix. Profit .470B is the reported NET Other income/expense methodology bucket, including internal financing effects; not intersegment sales times guessed margin. Other loss 8M in corporate costs. sec.gov ↗
Profit eliminated FY2028Consolidation$0.5BRuleFY2028: Equipment gross-to-external adjustments and finance .773/4.382 internal share removed at modeled mix. Profit .470B is the reported NET Other income/expense methodology bucket, including internal financing effects; not intersegment sales times guessed margin. Other loss 8M in corporate costs. sec.gov ↗
Profit eliminated FY2029Consolidation$0.5BRuleFY2029: Equipment gross-to-external adjustments and finance .773/4.382 internal share removed at modeled mix. Profit .470B is the reported NET Other income/expense methodology bucket, including internal financing effects; not intersegment sales times guessed margin. Other loss 8M in corporate costs. sec.gov ↗
Profit eliminated FY2030Consolidation$0.5BRuleFY2030: Equipment gross-to-external adjustments and finance .773/4.382 internal share removed at modeled mix. Profit .470B is the reported NET Other income/expense methodology bucket, including internal financing effects; not intersegment sales times guessed margin. Other loss 8M in corporate costs. sec.gov ↗
Profit eliminated FY2031Consolidation$0.5BRuleFY2031: Equipment gross-to-external adjustments and finance .773/4.382 internal share removed at modeled mix. Profit .470B is the reported NET Other income/expense methodology bucket, including internal financing effects; not intersegment sales times guessed margin. Other loss 8M in corporate costs. sec.gov ↗
Profit eliminated FY2032Consolidation$0.5BRuleFY2032: Equipment gross-to-external adjustments and finance .773/4.382 internal share removed at modeled mix. Profit .470B is the reported NET Other income/expense methodology bucket, including internal financing effects; not intersegment sales times guessed margin. Other loss 8M in corporate costs. sec.gov ↗
Profit eliminated FY2033Consolidation$0.5BRuleFY2033: Equipment gross-to-external adjustments and finance .773/4.382 internal share removed at modeled mix. Profit .470B is the reported NET Other income/expense methodology bucket, including internal financing effects; not intersegment sales times guessed margin. Other loss 8M in corporate costs. sec.gov ↗
Profit eliminated FY2034Consolidation$0.5BRuleFY2034: Equipment gross-to-external adjustments and finance .773/4.382 internal share removed at modeled mix. Profit .470B is the reported NET Other income/expense methodology bucket, including internal financing effects; not intersegment sales times guessed margin. Other loss 8M in corporate costs. sec.gov ↗
fiscalYearHistorical accounting reconciliationFY2025ReportedFull fiscal year ended in 2025; same-period accounting reconciliation. sec.gov ↗ · investors.caterpillar.com ↗
grossRevenueBHistorical accounting reconciliation$74.4BReportedOperating gross 70.062+supplemental finance 4.382=74.444, less equipment 6.082 and finance.773=67.589. Note 23 pretax 14.047 (Other loss moved central), net methodology.470, corporate 1.534 and operating interest.502 bridge to 11.541B. sec.gov ↗ · investors.caterpillar.com ↗
revenueEliminationsBHistorical accounting reconciliation$6.9BReportedOperating gross 70.062+supplemental finance 4.382=74.444, less equipment 6.082 and finance.773=67.589. Note 23 pretax 14.047 (Other loss moved central), net methodology.470, corporate 1.534 and operating interest.502 bridge to 11.541B. sec.gov ↗ · investors.caterpillar.com ↗
consolidatedRevenueBHistorical accounting reconciliation$67.6BReportedOperating gross 70.062+supplemental finance 4.382=74.444, less equipment 6.082 and finance.773=67.589. Note 23 pretax 14.047 (Other loss moved central), net methodology.470, corporate 1.534 and operating interest.502 bridge to 11.541B. sec.gov ↗ · investors.caterpillar.com ↗
segmentProfitBHistorical accounting reconciliation$14.0BReportedOperating gross 70.062+supplemental finance 4.382=74.444, less equipment 6.082 and finance.773=67.589. Note 23 pretax 14.047 (Other loss moved central), net methodology.470, corporate 1.534 and operating interest.502 bridge to 11.541B. sec.gov ↗ · investors.caterpillar.com ↗
profitEliminationsBHistorical accounting reconciliation$0.5BReportedOperating gross 70.062+supplemental finance 4.382=74.444, less equipment 6.082 and finance.773=67.589. Note 23 pretax 14.047 (Other loss moved central), net methodology.470, corporate 1.534 and operating interest.502 bridge to 11.541B. sec.gov ↗ · investors.caterpillar.com ↗
corporateCostsBHistorical accounting reconciliation$1.5BReportedOperating gross 70.062+supplemental finance 4.382=74.444, less equipment 6.082 and finance.773=67.589. Note 23 pretax 14.047 (Other loss moved central), net methodology.470, corporate 1.534 and operating interest.502 bridge to 11.541B. sec.gov ↗ · investors.caterpillar.com ↗
operatingInterestBHistorical accounting reconciliation$0.5BReportedOperating gross 70.062+supplemental finance 4.382=74.444, less equipment 6.082 and finance.773=67.589. Note 23 pretax 14.047 (Other loss moved central), net methodology.470, corporate 1.534 and operating interest.502 bridge to 11.541B. sec.gov ↗ · investors.caterpillar.com ↗
consolidatedPretaxBHistorical accounting reconciliation$11.5BReportedOperating gross 70.062+supplemental finance 4.382=74.444, less equipment 6.082 and finance.773=67.589. Note 23 pretax 14.047 (Other loss moved central), net methodology.470, corporate 1.534 and operating interest.502 bridge to 11.541B. sec.gov ↗ · investors.caterpillar.com ↗
Cash and short-term investmentsBalance sheet$6.7BReportedcash, cash equivalents and short-term investments us-gaap:CashAndCashEquivalentsAtCarryingValue · 0000018230-26-000046 (filed 2026-08-05)
BorrowingsBalance sheet$45.1BReportedborrowings due within a year plus long-term borrowings us-gaap:ShortTermBorrowings (disjoint rows on consolidated balance sheet: cat:FinancialProductsMember) + us-gaap:LongTermDebtAndCapitalLeaseObligationsCurrent (disjoint rows on consolidated balance sheet: cat:MachineryPowerEnergyMember, cat:FinancialProductsMember) · 0000018230-26-000046 + us-gaap:LongTermDebtAndCapitalLeaseObligations (disjoint rows on consolidated balance sheet: cat:MachineryPowerEnergyMember, cat:FinancialProductsMember) · 0000018230-26-000046
Finance leasesBalance sheet$0.0BReportedfinance leases not separately tagged; retained inside combined debt, with no additional lease deduction balance sheet 2026-06-30
SharesBalance sheet0.460BReportedshares outstanding as of 2026-06-30 cover page of 10-Q 0000018230-26-000046
Dividends per yearShareholders$2.8BReportedLast four paid dividends: three*$1.51 plus August 2026$1.63=$6.16. June 2026 dividend increase supersedes old rate. × 0.460B shares investors.caterpillar.com ↗

Research notes

  • share-count comparison: 0.4625B quarter 2026-04-01..2026-06-30 · 0000018230-26-000046; point-in-time denominator retained
  • unallocated company costs: $1.5B a year (2.3% of trailing revenue), growing with the lines, valued as one negative business
  • cost of equity 9.87% (β 1.20 after Blume adjustment), WACC 9.7%
  • Financial Products: residual income on $5.2B of common equity, earnings = ROE × equity, payout 68% (methodology §3.7)

Signal Ledger research under one stated scenario — management's targets are delivered — not a forecast that they will be and not investment advice. The research desk (GPT-6.1 (Codex)) gathers filings, guidance and targets; deterministic code applies the samepublished rules to every company and checks the result. Inputs may contain errors; follow the source links before relying on them. Read our valuation methodology →