IMO share price is significantly undervalued vs intrinsic...

IMO share price is significantly undervalued vs intrinsic value.

Based on my analysis (caveating that I own shares in CAT and the below is based on my own calculations so please complete your own research prior to making any investment decisions):

• CAT's top-line revenue increased 6% in FY20 and has grown at an average of circa ¬19% in the past 3 years.
• Free cash flow to equity was approximately $14.8m in FY20 (including approx. $22m in operating cash flow, $13m capex, and $5.8m net debt issued).
• Applying the FCFE Gordon Growth valuation model shows an intrinsic value range of $2.80/share to $4.20/share, assuming long term growth rates of 7% to 8% to FCFE.
• This assumes a 10% required return on equity.
• This implies a range of potential upside to intrinsic value of approx. 64% to 150% based on the current market price.

Not to mention the company is now free cash flow positive, has very little debt on the balance sheet, is a price maker with high barriers to entry and a durable competitive advantage, and can benefit from operating leverage as revenue continues to grow. This is a great long term hold in my opinion.

IMO DYOR.