Cummins Current Valuation
| CMI Stock | USD 660.75 3.82 0.58% |
Cummins trades near a market-range earnings multiple, reflecting the current earnings and balance-sheet profile. The current consensus analyst target for Cummins is $643.36 per share. That implies a trailing P/E of roughly 18.7. As of earlier this week, Enterprise Value Over EBITDA is 14.75 based on the most recent filings. Also, Enterprise Value Multiple has increased to 14.75. Fundamental valuation drivers for Cummins' include:
Above Model Estimate
Today
Current trading conditions suggest that Cummins' price fluctuation is Very Low right now. For valuation purposes, Macroaxis measures Cummins over a 3 months time horizon. Using a longer horizon generally improves the accuracy of the calculation.
Value Estimates Divergence
Cummins is trading at $660.75 versus a model-derived intrinsic value estimate of $442.92 per share, reading as above model estimate. For Cummins, the key valuation inputs are a profit margin of 8.87% and a return on equity of 24%, with an added check on Probability Of Bankruptcy. Like most valuation signals, this one reflects the idea that market price and underlying value can eventually converge.| Historical | Market 660.75 | Intrinsic 442.92 | Target 643.36 | Sentiment 663.78 | Naive 652.24 | DCF 208.34 |
The intrinsic value estimate of Cummins stock captures the present value of expected future earnings and cash generation. The estimate depends on Cummins' margin trajectory, reinvestment rate, and cost of capital.
Both the upside potential and the downside risk of Cummins factor into a balanced assessment. The upside estimate depends on how quickly current margin or earnings headwinds resolve, while the downside reflects what happens if they persist.
Cummins' Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account all liquid assets, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
Enterprise Value | = | Market Cap + Debt | - | Cash |
Current Cummins Current Valuation | 95.33 B |
Current Valuation is one of several ratios used to check whether Cummins trades above or below its intrinsic value estimate. The valuation tool uses Current Valuation with other metrics to build a full view of Cummins' pricing.
Current Valuation Driver Correlations
The correlation structure highlights how Current Valuation relates to Cummins' primary financial indicators. Strong positive values indicate co-directional movement; negative values indicate inverse relationships.
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| Competition |
Cummins Accumulated Other Comprehensive Income
Accumulated Other Comprehensive Income | -2.16 Billion |
Fundamental Drivers Relationships
Enterprise Value stood at 31.72 Billion as of December 31, 2025. Related reported metrics: Enterprise Value Over E B I T D A at 14.75 as of December 31, 2025; Enterprise Value Multiple at 14.75 as of December 31, 2025.
Current Valuation Peer Comparison
Analyzing Cummins' Current Valuation relative to comparable stocks provides a direct measure of competitive positioning. Investors use this approach to identify whether Cummins' Current Valuation is stronger or weaker than comparable stocks.Cummins is currently under evaluation for current valuation among direct rivals.
Important Fundamentals
| Return On Equity | 0.24 | |||
| Return On Asset | 0.0782 | |||
| Profit Margin | 0.0844 | |||
| Operating Margin | 0.11 | |||
| Current Valuation | 95.33 B | |||
| Shares Outstanding | 138.26 M | |||
| Shares Owned By Insiders | 0.29 % | |||
| Shares Owned By Institutions | 88.00 % | |||
| Number Of Shares Shorted | 2.03 M | |||
| Price To Earnings | 18.70 X | |||
| Price To Book | 7.35 X | |||
| Price To Sales | 2.71 X | |||
| Revenue | 33.67 B | |||
| Gross Profit | 8.67 B | |||
| EBITDA | 5.38 B | |||
| Net Income | 2.84 B | |||
| Cash And Equivalents | 2.85 B | |||
| Cash Per Share | 21.02 X | |||
| Total Debt | 8.11 B | |||
| Debt To Equity | 0.91 % | |||
| Current Ratio | 1.37 X | |||
| Book Value Per Share | 89.42 X | |||
| Cash Flow From Operations | 3.62 B | |||
| Short Ratio | 2.65 X | |||
| Earnings Per Share | 20.48 X | |||
| Price To Earnings To Growth | 1.80 X | |||
| Target Price | 643.36 | |||
| Number Of Employees | 67.4 K | |||
| Trailing Beta | 1.14 | |||
| Market Capitalization | 91.35 B | |||
| Total Asset | 33.99 B | |||
| Retained Earnings | 22.62 B | |||
| Working Capital | 7.32 B | |||
| Current Asset | 7.95 B | |||
| Current Liabilities | 3.8 B | |||
| Annual Yield | 0.01 % | |||
| Five Year Return | 2.72 % | |||
| Net Asset | 33.99 B | |||
| Last Dividend Paid | 7.64 |
Financial Metrics, Fundamentals & Methodology
Cummins is best evaluated by comparing cash generation capacity with funding needs and reinvestment demands. Capital allocation strategy influences how much long-term value can be retained for shareholders. Latest reported fundamentals for Cummins include revenue of 33.67 B, positive EPS of 20.48, operating margin of 10.92%, current ratio of 1.37 as of the latest reporting period.
Cummins figures are aggregated from periodic company reporting and market reference feeds and normalized across reporting formats. Accounting-line values follow GAAP or IFRS structures as published in issuer filings.
Editorial review and methodology oversight provided by: Gabriel Shpitalnik, Member of Macroaxis Editorial Board