Cummins Inc.

WBAG:CMI Stock Report

Market Cap: €49.0b

Cummins Valuation

Is CMI undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of CMI when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: CMI (€354.3) is trading below our estimate of fair value (€722.04)

Significantly Below Fair Value: CMI is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for CMI?

Key metric: As CMI is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for CMI. This is calculated by dividing CMI's market cap by their current earnings.
What is CMI's PE Ratio?
PE Ratio24.7x
EarningsUS$2.10b
Market CapUS$51.77b

Price to Earnings Ratio vs Peers

How does CMI's PE Ratio compare to its peers?

The above table shows the PE ratio for CMI vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average14.8x
PAL Palfinger
6.3x-0.3%€678.0m
ROS Rosenbauer International
31.9x62.6%€236.6m
ANDR Andritz
10.5x5.2%€5.3b
VOLV B AB Volvo
10.6x1.0%SEK 548.3b
CMI Cummins
24.7x7.6%€51.8b

Price-To-Earnings vs Peers: CMI is expensive based on its Price-To-Earnings Ratio (24.7x) compared to the peer average (14.8x).

Price to Earnings Ratio vs Industry

How does CMI's PE Ratio compare vs other companies in the European Machinery Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
CMI 24.7xIndustry Avg. 17.4xNo. of Companies29PE01020304050+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: CMI is expensive based on its Price-To-Earnings Ratio (24.7x) compared to the European Machinery industry average (17.4x).

Price to Earnings Ratio vs Fair Ratio

What is CMI's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

CMI PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio24.7x
Fair PE Ratio15.5x

Price-To-Earnings vs Fair Ratio: CMI is expensive based on its Price-To-Earnings Ratio (24.7x) compared to the estimated Fair Price-To-Earnings Ratio (15.5x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst CMI forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€354.30
€346.71
-2.1%
13.4%€436.45€261.22n/a19
Nov ’25€304.20
€303.95
-0.08%
12.8%€389.77€229.28n/a18
Oct ’25€293.60
€285.75
-2.7%
9.2%€329.38€225.60n/a18
Sep ’25€279.00
€282.68
+1.3%
9.3%€326.13€223.38n/a18
Aug ’25€284.50
€278.85
-2.0%
8.9%€319.71€227.97n/a19
Jul ’25€254.00
€280.67
+10.5%
8.6%€323.02€230.33n/a20
Jun ’25€254.20
€276.30
+8.7%
8.6%€319.44€227.77n/a20
May ’25€266.70
€270.74
+1.5%
9.8%€337.93€225.29n/a21
Apr ’25€272.50
€253.06
-7.1%
8.2%€296.15€218.66n/a20
Mar ’25€248.80
€245.98
-1.1%
7.4%€280.86€219.04n/a19
Feb ’25€220.20
€237.24
+7.7%
8.4%€279.25€206.75n/a19
Jan ’25€217.60
€232.15
+6.7%
7.7%€275.21€209.19n/a18
Dec ’24€207.20
€235.02
+13.4%
8.3%€279.22€198.46n/a18
Nov ’24€205.40
€241.94
+17.8%
7.6%€274.57€204.51€304.2017
Oct ’24€217.50
€245.65
+12.9%
7.7%€276.05€205.61€293.6017
Sep ’24€217.00
€239.29
+10.3%
8.1%€266.71€198.66€279.0018
Aug ’24€239.20
€232.93
-2.6%
8.9%€262.16€195.26€284.5018
Jul ’24€224.40
€233.76
+4.2%
7.9%€266.83€198.74€254.0018
Jun ’24€192.70
€239.21
+24.1%
8.7%€279.77€202.11€254.2020
May ’24€205.80
€236.26
+14.8%
9.0%€275.79€196.02€266.7020
Apr ’24€218.60
€245.99
+12.5%
9.2%€286.49€203.62€272.5019
Mar ’24€232.30
€245.99
+5.9%
9.2%€286.49€203.62€248.8019
Feb ’24€228.00
€238.29
+4.5%
9.0%€279.89€198.94€220.2019
Jan ’24€226.25
€243.58
+7.7%
9.3%€286.40€203.49€217.6019
Dec ’23€237.35
€247.91
+4.4%
10.2%€294.42€202.42€207.2019
Nov ’23€249.90
€252.90
+1.2%
11.4%€311.07€194.48€205.4019

Analyst Forecast: Target price is lower than the current share price.

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