Cummins Inc.

BIT:1CMI Stock Report

Market Cap: €70.6b

Cummins Valuation

Is 1CMI undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Future Cash Flow Value

  • Significantly Below Future Cash Flow Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Future Cash Flow Value

What is the Fair Price of 1CMI when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Ultimate guide to DCF valuation for stock investing

Learn how to determine fair value like the best investors in the world.

Below Future Cash Flow Value: 1CMI (€495.4) is trading below our estimate of future cash flow value (€507.12)

Significantly Below Future Cash Flow Value: 1CMI is trading below future cash flow value, but not by a significant amount.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 1CMI?

Key metric: As 1CMI is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 1CMI. This is calculated by dividing 1CMI's market cap by their current earnings.
What is 1CMI's PE Ratio?
PE Ratio29.6x
EarningsUS$2.84b
Market CapUS$83.16b

Price to Earnings Ratio vs Peers

How does 1CMI's PE Ratio compare to its peers?

The above table shows the PE ratio for 1CMI vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average29.8x
FCT Fincantieri
41.6x27.34%€4.9b
IVG Iveco Group
22x42.33%€5.2b
PRY Prysmian
28x11.05%€34.7b
LDO Leonardo
27.3x14.80%€33.5b
1CMI Cummins
29.6x14.77%€83.2b

Price-To-Earnings vs Peers: 1CMI is good value based on its Price-To-Earnings Ratio (29.6x) compared to the peer average (29.8x).

Historical Price to Earnings Ratio

Historical Price to Earnings Ratio compares a stock's price to its earnings over time. Higher ratios indicate that investors are willing to pay more for the stock.

Fetching historical data

Price to Earnings Ratio vs Industry

How does 1CMI's PE Ratio compare vs other companies in the IT Machinery Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No more companies available in this PE range
1CMI 29.6xIndustry Avg. 20.3xNo. of Companies4PE0816243240+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 1CMI is expensive based on its Price-To-Earnings Ratio (29.6x) compared to the European Machinery industry average (20.5x).

Price to Earnings Ratio vs Fair Ratio

What is 1CMI'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.

1CMI PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio29.6x
Fair PE Ratio29.9x

Price-To-Earnings vs Fair Ratio: 1CMI is good value based on its Price-To-Earnings Ratio (29.6x) compared to the estimated Fair Price-To-Earnings Ratio (29.9x).

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 1CMI forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€495.40
€541.44
+9.29%
10.77%€664.07€415.18n/a20
Apr ’27€478.00
€535.24
+11.98%
8.92%€606.97€423.07n/a19
Mar ’27€490.00
€524.59
+7.06%
8.95%€596.92€416.06n/a19
Feb ’27€483.20
€475.69
-1.55%
11.59%€549.63€378.77n/a19
Jan ’27€438.40
€454.42
+3.65%
11.36%€555.38€382.73n/a20
Dec ’26€429.70
€446.16
+3.83%
10.22%€540.96€387.63n/a19
Nov ’26€380.40
€381.99
+0.42%
9.03%€429.45€300.62n/a17
Oct ’26€364.10
€363.14
-0.26%
9.98%€426.93€299.08n/a17
Sep ’26€339.70
€358.56
+5.55%
9.46%€415.86€300.51n/a17
Aug ’26€309.80
€310.19
+0.13%
11.84%€396.84€224.30n/a16
Jul ’26€280.70
€299.59
+6.73%
13.21%€390.17€220.53n/a18
Jun ’26€285.90
€309.12
+8.12%
13.69%€405.86€229.40n/a19
May ’26€254.80
€299.88
+17.69%
14.86%€402.64€210.07n/a19
Apr ’26n/a
€350.34
0%
12.08%€426.37€260.46€478.0019
Mar ’26n/a
€373.91
0%
12.06%€438.66€267.96€490.0019
Feb ’26n/a
€363.63
0%
13.81%€438.43€267.82€483.2019
Jan ’26n/a
€365.79
0%
13.90%€442.24€270.15€438.4019
Dec ’25n/a
€347.91
0%
13.89%€434.70€260.18€429.7019
Nov ’25n/a
€303.95
0%
12.84%€389.77€229.28€380.4018
Oct ’25n/a
€285.75
0%
9.22%€329.38€225.60€364.1018
Sep ’25n/a
€282.68
0%
9.32%€326.13€223.38€339.7018
Aug ’25n/a
€278.85
0%
8.89%€319.71€227.97€309.8019
Jul ’25n/a
€280.67
0%
8.60%€323.02€230.33€280.7020
Jun ’25n/a
€276.30
0%
8.60%€319.44€227.77€285.9020
May ’25n/a
€271.43
0%
9.79%€338.80€225.86€254.8021
Apr ’25n/a
€253.06
0%
8.21%€296.15€218.66n/a20
€519.91
Fair Value
4.7% undervalued intrinsic discount
20
Number of Analysts

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2026/04/16 03:12
End of Day Share Price 2026/04/16 00:00
Earnings2025/12/31
Annual Earnings2025/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Cummins Inc. is covered by 47 analysts. 19 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
John EadeArgus Research Company
Luke JunkBaird
Andrew KaplowitzBarclays