The Bill and Melinda Gates Foundation Trust is a relatively concentrated portfolio for a Trust with $36.5 billion invested. According to its last SEC filing, it only holds 22 stocks, so it's definitely not an index "tracker." As such, it's worth monitoring every stock in the portfolio, so here's a look at (NYSE: CAT) and Danaher (NYSE: DHR).

Management aims to achieve free cash flow (FCF) in a targeted range of $4 billion to $8 billion. If that turns out to be true, Caterpillar is fairly valued right now in my view.

Taking the midpoint of the range of $6 billion and applying a price-to-FCF multiple of 20 would produce a target market cap of $120 billion. That's not far from the current market cap of $126 billion. 

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Source Fool.com