Cummins Valuation
| CUM Stock | EUR 358.10 3.70 1.02% |
At this time, the firm appears to be undervalued. Cummins shows a prevailing Real Value of €399.39 per share. The current price of the firm is €358.1. Our model approximates the value of Cummins from analyzing the firm fundamentals such as Current Valuation of 37.69 B, return on equity of 0.22, and Profit Margin of 0.08 % as well as examining its technical indicators and probability of bankruptcy.
Undervalued
Today
Please note that Cummins' price fluctuation is very steady at this time. Calculation of the real value of Cummins is based on 3 months time horizon. Increasing Cummins' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
The fair value of the Cummins stock is determined by what a typical buyer is willing to pay for full or partial control of Cummins. Since Cummins is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Cummins Stock. However, Cummins' intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 358.1 | Real 399.39 | Hype 361.8 | Naive 352.94 |
The real value of Cummins Stock, also known as its intrinsic value, is the underlying worth of Cummins Company, which is reflected in its stock price. It is based on Cummins' financial performance, growth prospects, management team, or industry conditions. The intrinsic value of Cummins' stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, or news.
Estimating the potential upside or downside of Cummins helps investors to forecast how Cummins stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Cummins more accurately as focusing exclusively on Cummins' fundamentals will not take into account other important factors: Cummins Total Value Analysis
Cummins is currently estimated to have takeover price of 37.69 B with market capitalization of 32.45 B, debt of 4.5 B, and cash on hands of 1.73 B. Please note that takeover price may be misleading and is a subject to mistakes in financial statements. We encourage investors to thoroughly investigate all of the Cummins fundamentals before making investing decisions based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
37.69 B | 32.45 B | 4.5 B | 1.73 B |
Cummins Investor Information
About 86.0% of the company shares are held by institutions such as insurance companies. The book value of Cummins was currently reported as 63.52. The company has Price/Earnings To Growth (PEG) ratio of 1.55. Cummins recorded earning per share (EPS) of 14.11. The entity last dividend was issued on the 23rd of February 2023. Based on the key indicators related to Cummins' liquidity, profitability, solvency, and operating efficiency, Cummins is not in a good financial situation at the moment. It has a very high risk of going through financial straits in January.Cummins Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Cummins has an asset utilization ratio of 92.66 percent. This implies that the Company is making €0.93 for each dollar of assets. An increasing asset utilization means that Cummins is more efficient with each dollar of assets it utilizes for everyday operations.Cummins Ownership Allocation
Cummins holds a total of 141.38 Million outstanding shares. The majority of Cummins outstanding shares are owned by other corporate entities. These outside corporations are usually referred to as non-private investors looking to acquire positions in Cummins to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in Cummins. Please pay attention to any change in the institutional holdings of Cummins as this could imply that something significant has changed or is about to change at the company. Please note that no matter how many assets the company secures, if the real value of the firm is less than the current market value, you may not be able to make money on it.Cummins Profitability Analysis
The company reported the revenue of 28.07 B. Net Income was 2.15 B with profit before overhead, payroll, taxes, and interest of 6.74 B.Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Cummins' worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Cummins and how it compares across the competition.
About Cummins Valuation
The stock valuation mechanism determines Cummins' current worth on a weekly basis. Our valuation model uses a comparative analysis of Cummins. We calculate exposure to Cummins's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Cummins's related companies.Cummins Inc. designs, manufactures, distributes, and services diesel and natural gas engines, and powertrain-related component products worldwide. Cummins Inc. was founded in 1919 and is headquartered in Columbus, Indiana. CUMMINS INC operates under Diversified Industrials classification in Germany and is traded on Frankfurt Stock Exchange. It employs 62600 people.
8 Steps to conduct Cummins' Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Cummins' potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Cummins' valuation analysis, follow these 8 steps:- Gather financial information: Obtain Cummins' financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Cummins' revenue streams: Identify Cummins' primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Cummins' industry and market trends, including the size of the market, growth rate, and competition.
- Establish Cummins' growth potential: Evaluate Cummins' management, business model, and growth potential.
- Determine Cummins' financial performance: Analyze its financial statements to assess its historical performance and future potential.
- Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
- Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Cummins' estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Complementary Tools for Cummins Stock analysis
When running Cummins' price analysis, check to measure Cummins' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Cummins is operating at the current time. Most of Cummins' value examination focuses on studying past and present price action to predict the probability of Cummins' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Cummins' price. Additionally, you may evaluate how the addition of Cummins to your portfolios can decrease your overall portfolio volatility.
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |