Breakup Value of Caterpillar
FY 2005 FY 2004 FY 2003
CATMfg CATFin CATMfg CATFin CATMfg
Revenues 34006 2333 28336 1970 21048
Operating costs
Cost of Goods Sold 24852.95 1705.05
SGA 2985.199 204.8012
R&D 1084 0
Interest expense 0 768 0 524 0
Other operating expense 893.688 61.31195
Total Operating expenses 29815.84 2739.163
Operating Profit 4190.163 -406.163
Interest expense Exc Fin 260 0
Other Income 352.7962 24.20378
PBT 4282.959 -381.959
EBITDA Multiple method for CATMfg
EBIT 4711
D&A 691
EBITDA 5402
EV / EBITDA x (2006E) 11.9
EV for CAT 64283.8 Mn
Debt 6954
Cash 951
Equity Value of CATMfg 58280.8 Mn
Price to Book Value for CATFin
Inv 3253
P/BV x 3
Equity Value of CAT Fin 9759 Mn
% of revenue split
FY 2003 check 2005 2004 2003
CATFin FY 2005 FY 2004 FY 2003 CAT Fin CAT Fin CAT Fin
1759 36339 30306 22807 6.42% 6.50% 7.71%
26558
3190
1084
474
955
377
CAT CAT Man CATFin
EBIT 5277 4711 566
EBIT(1-T) at 29% 3746.67 3345 402
Depreciation 1337 691 646
Capex -2203 -971 -1232
Change in WC -140 -140
FCFF 2924.81 2925
cat man 2005 2006 2007 2008
FCFF 15% 2925 3364 3868 4448
WACC 10%
PV 3058 3197 3342
Sum PV 86478
Less Debt
2009 2010 2011
5116 5883 123540
3494 3653 69735