CMI PE Ratio & Valuation, Is CMI Overvalued

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 14.01. The fair price of Cummins Inc (CMI) is between 371.06 to 472.96 according to relative valuation method. Compared to the current price of 558.71 USD , Cummins Inc By Overvalued By 18.13%.

Relative Value

Fair Zone

371.06-472.96

Current Price：558.71

18.13%

Overvalued

P/E

EV/EBITDA

EV/EBIT

P/S

P/OCF

P/FCF

Trailing

Forward

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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 4.15, the current P/B ratio is approximately 44.04% higher. Relative to its 5-year average P/B ratio of 4.07, the current P/B ratio is about 46.91% 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 3.62%, the current FCF yield is approximately -12.71% lower. Relative to its 5-year average FCF yield of 4.24%, the current FCF yield is about -25.49% lower.

Competitors Valuation Multiple

AI Analysis

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 1.05%, this premium appears unsustainable.

P/E

P/S

EV/EBITDA

EV/EBIT

Earnings Growth

Market Cap

Performance Decomposition

AI Analysis

Market capitalization of CMI increased by 0.00% over the past 1 year(s). 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(s) is driven by Unknown.

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Frequently Asked Questions

Is CMI currently overvalued or undervalued?

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 371.06 to 472.96 according to relative valuation method.

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 1.05%, this premium appears unsustainable.

What is the current P/B ratio for Cummins Inc (CMI) as of Mar 11 2026?

As of Mar 11 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 Mar 11 2026?

As of Mar 11 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 Mar 11 2026?

As of Mar 11 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 Mar 11 2026?

As of Mar 11 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.

CMI Valuation