Historical Valuation
Cummins Inc (CMI) is now in the Overvalued zone, suggesting that its current forward PE ratio of 21.75 is considered Overvalued compared with the five-year average of 14.08. The fair price of Cummins Inc (CMI) is between 368.24 to 468.85 according to relative valuation methord. Compared to the current price of 552.09 USD , Cummins Inc is Overvalued By 17.75%.
Relative Value
Fair Zone
368.24-468.85
Current Price：552.09
17.75%
Overvalued
P/E
EV/EBITDA
EV/EBIT
P/S
P/OCF
P/FCF
1Y
3Y
5Y
Trailing
Forward
Cummins Inc (CMI) has a current Price-to-Book (P/B) ratio of 5.97. Compared to its 3-year average P/B ratio of 4.13 , the current P/B ratio is approximately 44.46% higher. Relative to its 5-year average P/B ratio of 4.08, the current P/B ratio is about 46.38% higher. Cummins Inc (CMI) has a Forward Free Cash Flow (FCF) yield of approximately 3.16%. Compared to its 3-year average FCF yield of 3.59%, the current FCF yield is approximately -11.88% lower. Relative to its 5-year average FCF yield of 4.30% , the current FCF yield is about -26.48% lower.
P/B
Median3y
4.13
Median5y
4.08
FCF Yield
Median3y
3.59
Median5y
4.30
Competitors Valuation Multiple
AI Analysis for CMI
The average P/S ratio for CMI competitors is 3.27, providing a benchmark for relative valuation. Cummins Inc Corp (CMI.N) exhibits a P/S ratio of 2.14, which is -34.56% above the industry average. Given its robust revenue growth of -1.64%, this premium appears unsustainable.
Performance Decomposition
AI Analysis for CMI
1Y
3Y
5Y
Market capitalization of CMI increased by 0.00% over the past 1 year. The primary factor behind the change was an decrease in Unknown from 0.00 to 0.00.
The secondary factor is the Unknown, contributed 0.00%to the performance.
Overall, the performance of CMI in the past 1 year is driven by Unknown.
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Frequently Asked Questions
Is CMI currently overvalued or undervalued?
Cummins Inc (CMI) is now in the Overvalued zone, suggesting that its current forward PE ratio of 21.75 is considered Overvalued compared with the five-year average of 14.08. The fair price of Cummins Inc (CMI) is between 368.24 to 468.85 according to relative valuation methord. Compared to the current price of 552.09 USD , Cummins Inc is Overvalued By 17.75% .
What is Cummins Inc (CMI) fair value?
CMI's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average , adjusted by weights. The fair price of Cummins Inc (CMI) is between 368.24 to 468.85 according to relative valuation methord.
How does CMI's valuation metrics compare to the industry average?
The average P/S ratio for CMI's competitors is 3.27, providing a benchmark for relative valuation. Cummins Inc Corp (CMI) exhibits a P/S ratio of 2.14, which is -34.56% above the industry average. Given its robust revenue growth of -1.64%, this premium appears unsustainable.
What is the current P/B ratio for Cummins Inc (CMI) as of Jan 12 2026?
As of Jan 12 2026, Cummins Inc (CMI) has a P/B ratio of 5.97. This indicates that the market values CMI at 5.97 times its book value.
What is the current FCF Yield for Cummins Inc (CMI) as of Jan 12 2026?
As of Jan 12 2026, Cummins Inc (CMI) has a FCF Yield of 3.16%. This means that for every dollar of Cummins Inc’s market capitalization, the company generates 3.16 cents in free cash flow.
What is the current Forward P/E ratio for Cummins Inc (CMI) as of Jan 12 2026?
As of Jan 12 2026, Cummins Inc (CMI) has a Forward P/E ratio of 21.75. This means the market is willing to pay $21.75 for every dollar of Cummins Inc’s expected earnings over the next 12 months.
What is the current Forward P/S ratio for Cummins Inc (CMI) as of Jan 12 2026?
As of Jan 12 2026, Cummins Inc (CMI) has a Forward P/S ratio of 2.14. This means the market is valuing CMI at $2.14 for every dollar of expected revenue over the next 12 months.