Cummins Inc.

NYSE:CMI Stock Report

Market Cap: US$49.3b

Cummins Valuation

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

Valuation Score

4/6

Valuation Score 4/6

  • 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.

Discounted Cash Flow
Simply Wall St
US$715.26
Fair Value
50.2% undervalued intrinsic discount
19
Number of Analysts

Below Fair Value: CMI ($356.25) is trading below our estimate of fair value ($715.26)

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 Ratio23.3x
EarningsUS$2.10b
Market CapUS$49.34b

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 Average19.6x
PCAR PACCAR
14x2.2%US$59.0b
WAB Westinghouse Air Brake Technologies
33.7x16.6%US$36.1b
CAT Caterpillar
16.6x3.3%US$181.0b
ALSN Allison Transmission Holdings
14x4.7%US$10.3b
CMI Cummins
23.3x6.3%US$49.3b

Price-To-Earnings vs Peers: CMI is expensive based on its Price-To-Earnings Ratio (23.3x) compared to the peer average (19.6x).

Price to Earnings Ratio vs Industry

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

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
AIRJ AirJoule Technologies
2xn/aUS$452.33m
CVGI Commercial Vehicle Group
2.4x-37.8%US$70.52m
FATH Fathom Digital Manufacturing
2.6xn/aUS$35.24m
No more companies available in this PE range
CMI 23.3xIndustry Avg. 23.5xNo. of Companies10PE01632486480+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: CMI is good value based on its Price-To-Earnings Ratio (23.3x) compared to the US Machinery industry average (23.5x).

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 Ratio23.3x
Fair PE Ratio25.3x

Price-To-Earnings vs Fair Ratio: CMI is good value based on its Price-To-Earnings Ratio (23.3x) compared to the estimated Fair Price-To-Earnings Ratio (25.3x).

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
CurrentUS$356.25
US$381.53
+7.1%
13.8%US$460.00US$281.00n/a19
Jan ’26US$348.60
US$380.48
+9.1%
13.9%US$460.00US$281.00n/a19
Dec ’25US$375.04
US$368.16
-1.8%
13.9%US$460.00US$275.32n/a19
Nov ’25US$328.51
US$331.43
+0.9%
12.8%US$425.00US$250.00n/a18
Oct ’25US$326.28
US$316.65
-3.0%
9.2%US$365.00US$250.00n/a18
Sep ’25US$312.85
US$316.38
+1.1%
9.3%US$365.00US$250.00n/a18
Aug ’25US$306.09
US$300.91
-1.7%
8.9%US$345.00US$246.00n/a19
Jul ’25US$272.29
US$299.76
+10.1%
8.6%US$345.00US$246.00n/a20
Jun ’25US$281.73
US$298.41
+5.9%
8.6%US$345.00US$246.00n/a20
May ’25US$283.87
US$288.42
+1.6%
9.8%US$360.00US$240.00n/a21
Apr ’25US$294.53
US$274.30
-6.9%
8.2%US$321.00US$237.00n/a20
Mar ’25US$270.26
US$266.15
-1.5%
7.4%US$303.90US$237.00n/a19
Feb ’25US$242.97
US$258.17
+6.3%
8.4%US$303.90US$225.00US$356.2519
Jan ’25US$239.57
US$256.35
+7.0%
7.7%US$303.90US$231.00US$348.6018
Dec ’24US$226.31
US$255.79
+13.0%
8.3%US$303.90US$216.00US$375.0418
Nov ’24US$218.05
US$255.54
+17.2%
7.6%US$290.00US$216.00US$328.5117
Oct ’24US$228.46
US$258.07
+13.0%
7.7%US$290.00US$216.00US$326.2817
Sep ’24US$236.64
US$260.18
+9.9%
8.1%US$290.00US$216.00US$312.8518
Aug ’24US$264.99
US$257.67
-2.8%
8.9%US$290.00US$216.00US$306.0918
Jul ’24US$245.16
US$254.06
+3.6%
7.9%US$290.00US$216.00US$272.2918
Jun ’24US$206.86
US$255.65
+23.6%
8.7%US$299.00US$216.00US$281.7320
May ’24US$234.58
US$260.35
+11.0%
9.0%US$303.90US$216.00US$283.8720
Apr ’24US$238.88
US$260.94
+9.2%
9.2%US$303.90US$216.00US$294.5319
Mar ’24US$249.21
US$260.94
+4.7%
9.2%US$303.90US$216.00US$270.2619
Feb ’24US$250.91
US$258.73
+3.1%
9.0%US$303.90US$216.00US$242.9719
Analyst Price Target
Consensus Narrative from 19 Analysts
US$381.53
Fair Value
6.6% undervalued intrinsic discount
19
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 Analysis2025/01/31 05:34
End of Day Share Price 2025/01/31 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

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 here.

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 .

Analyst Sources

Cummins Inc. is covered by 59 analysts. 20 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
Rorrie MarsAtlantic Equities LLP
Kristine KubackiAvondale Partners