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Cummins Inc. (CMI) Stock by the Numbers

Friday, September 29, 2023 03:43 PM | InvestorsObserver Analysts

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Cummins Inc. (CMI) Stock by the Numbers

Cummins Inc. (CMI) receives a strong valuation score of 91 from InvestorsObserver analysis. Our proprietary scoring system considers the overall health of the company by looking at the stock's price, earnings, and growth rate to determine if it represents a good value. CMI holds a better value than 91% of stocks at its current price. Investors who are focused on long-term growth through buy-and-hold investing will find the Valuation Rank especially relevant when allocating their assets.

Valuation Rank - 91
CMI gets a 91 Valuation Rank today. Find out what this means to you and get the rest of the rankings on CMI!

Metrics Analysis

CMI has a trailing twelve month Price to Earnings (PE) ratio of 12.86 which places it around the histroical average of roughly 15. CMI is currently trading at a average value due to investors paying around what the stock is worth in relation to its earnings. CMI's trailing-12-month earnings per share (EPS) of 17.86 does justify its share price in the market. Trailing PE ratios do not factor in the company's projected growth rate, thus, some firms will have high PE ratios caused by high growth recruiting more investors even if the underlying company has produced low earnings so far.
CMI's 12-month-forward PE to Growth (PEG) ratio of 1.13 is considered a roughly average value as the market is valuing CMI right in line with its projected earnings growth. CMI's PEG comes from its forward price to earnings ratio being divided by its growth rate. A PEG ratio of 1 represents a perfect correlation between earnings growth and share price. Due to their incorporation of more fundamentals of a company's overall health and focusing on the future rather than the past, PEG ratios are one of the most used valuation metrics by analysts today.


CMI's valuation metrics are adequate at its current price due to a fairly valued PEG ratio despite strong growth. CMI's PE and PEG are around the market average resulting in a average valuation score. Click Here to get the full Report on Cummins Inc. (CMI) stock.

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