Cummins Inc. (CMI) Valuation
Historical valuation analysis based on 1280 data points (2021-09-13 to 2026-10-16)
Cummins is a leading manufacturer of diesel and other engines used in heavy- and medium-duty commercial trucks, off-highway equipment, and locomotives, in addition to prime power and standby genera...
Cummins Inc. (CMI) currently trades at a P/E ratio of 26.94 (historical range: 10.97–37.78, median: 17.59), placing it at the 86th percentile — expensive relative to its history, P/S ratio of 2.11 (range: 0.92–2.98, 85th percentile — expensive relative to its history), EV/EBITDA of 19.91 (range: 9.08–31.92, 66th percentile).
Over the historical period (2021-09-13 to 2026-10-16), Cummins Inc.'s P/E ratio has expanded by 66% over the observed period (from an average of 14.6 to 24.1).
Cummins Inc. trades well above its own historical valuation range across most metrics.
Historical Valuation Metrics
| Metric | Current | Median | %ile | Assessment |
|---|---|---|---|---|
| P/E Ratio | 26.94 | 17.59 | 86th | expensive relative to its history |
| P/S Ratio | 2.11 | 1.32 | 85th | expensive relative to its history |
| EV/EBITDA | 19.91 | 14.32 | 66th | above its historical average |
| FCF Yield | 4.60% | 3.49% | 70th | below its historical average |
Cummins Inc. (CMI) Valuation & P/E History
Cummins Inc. (CMI) is a US-listed stock operating in the Industrials sector, specifically the Engines & Turbines industry currently trading at $530.00 with a market capitalization of $73.0 billion. This page provides historical valuation analysis for CMI based on 1280 data points covering 2021-09-13 to 2026-10-16. The P/E ratio of 26.94 is above the historical median of 17.59, placing CMI at the 86th percentile of its valuation range. The P/S ratio of 2.11 compares to a median of 1.32.
CMI Valuation Metrics & Historical Range
The valuation table above shows Cummins Inc.'s current and historical valuation multiples, including P/E ratio, P/S ratio, EV/EBITDA, FCF yield, and dividend yield. Each metric is compared to its own historical range to determine whether CMI is currently trading above or below its typical valuation levels.
- P/E ratio: Price-to-earnings measures how much investors pay per dollar of earnings. A P/E above the historical median suggests CMI is expensively valued; below the median suggests it is cheap.
- P/S ratio: Price-to-sales is useful for companies with volatile or negative earnings. Lower P/S relative to history may indicate value.
- EV/EBITDA: Enterprise value to EBITDA adjusts for debt and cash, providing a capital-structure-neutral valuation measure for Cummins Inc..
- FCF yield: Free cash flow yield shows the cash return relative to market price. Higher yields may indicate undervaluation.
Is CMI Overvalued or Undervalued?
Cummins Inc. trades well above its own historical valuation range across most metrics. The overall valuation percentile of 79 combines P/E, P/S, and EV/EBITDA percentiles into a single measure of how expensive CMI is relative to its own history. A percentile below 25 suggests the stock may be undervalued, while a percentile above 75 suggests it may be overvalued.
However, valuation is only one factor in investment decisions. A stock can remain "overvalued" for years if growth accelerates, or "undervalued" if the business deteriorates. Always combine valuation analysis with financial statement analysis and the full CMI analysis page for a complete picture.
Valuation data is computed from historical price and fundamental data via Polygon.io and Finnhub.CMI trades on NYSE/NASDAQ. This page is for informational purposes only and is not financial advice.