Cummins Stock Current Valuation
| CMI Stock | USD 291.36 3.22 1.09% |
Valuation analysis of Cummins helps investors to measure Cummins' intrinsic value by examining its available valuation indicators, including the cash flow records, the balance sheet account changes and income statement patterns. The Cummins' current Enterprise Value Over EBITDA is estimated to increase to 13.54. The Cummins' current Enterprise Value Multiple is estimated to increase to 13.54. Fundamental drivers impacting Cummins' valuation include:
Price Book 4.6147 | Enterprise Value 47.4 B | Enterprise Value Ebitda 14.9776 | Price Sales 1.1989 | Forward PE 16.1031 |
Fairly Valued
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.
Our valuation method for Cummins is useful when determining the fair value of the Cummins stock, which is usually 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 291.36 | Real 288.45 | Target 257.88 | Hype 291.36 | Naive 282.05 |
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, assets, liabilities, 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, news, and other external factors that may influence Cummins' stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
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 Company Current Valuation Analysis
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 the entire liquid asset, 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.
Current Cummins Current Valuation | 47.43 B |
Most of Cummins' fundamental indicators, such as Current Valuation, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Cummins is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
Cummins Current Valuation Driver Correlations
Understanding the fundamental principles of building solid financial models for Cummins is extremely important. It helps to project a fair market value of Cummins Stock properly, considering its historical fundamentals such as Current Valuation. Since Cummins' main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of Cummins' historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of Cummins' interrelated accounts and indicators.
Click cells to compare fundamentals
Cummins Current Valuation Historical Pattern
Today, most investors in Cummins Stock are looking for potential investment opportunities by analyzing not only static indicators but also various Cummins' growth ratios. Consistent increases or drops in fundamental ratios usually indicate a possible pattern that can be successfully translated into profits. However, when comparing two companies, knowing each company's current valuation growth rates may not be enough to decide which company is a better investment. That's why investors frequently use a static breakdown of Cummins current valuation as a starting point in their analysis.
Cummins Current Valuation |
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Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
| Competition |
In accordance with the recently published financial statements, Cummins has a Current Valuation of 47.43 B. This is much higher than that of the Machinery sector and significantly higher than that of the Industrials industry. The current valuation for all United States stocks is 185.28% lower than that of the firm.
Cummins Current Valuation Peer Comparison
Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Cummins' direct or indirect competition against its Current Valuation to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Cummins could also be used in its relative valuation, which is a method of valuing Cummins by comparing valuation metrics of similar companies.Cummins is rated third in current valuation category among related companies.
Cummins ESG Sustainability
Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Cummins' sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Cummins' managers, analysts, and investors.Environment Score | Governance Score | Social Score |
Cummins Fundamentals
| Return On Equity | 0.0835 | |||
| Return On Asset | 0.0692 | |||
| Profit Margin | 0.02 % | |||
| Operating Margin | 0.09 % | |||
| Current Valuation | 47.43 B | |||
| Shares Outstanding | 136.76 M | |||
| Shares Owned By Insiders | 0.40 % | |||
| Shares Owned By Institutions | 89.10 % | |||
| Number Of Shares Shorted | 2.75 M | |||
| Price To Earning | 18.70 X | |||
| Price To Book | 4.61 X | |||
| Price To Sales | 1.20 X | |||
| Revenue | 34.06 B | |||
| Gross Profit | 6.74 B | |||
| EBITDA | 1.76 B | |||
| Net Income | 840 M | |||
| Cash And Equivalents | 2.1 B | |||
| Cash Per Share | 21.02 X | |||
| Total Debt | 7.21 B | |||
| Debt To Equity | 0.91 % | |||
| Current Ratio | 1.37 X | |||
| Book Value Per Share | 62.41 X | |||
| Cash Flow From Operations | 3.97 B | |||
| Short Ratio | 0.41 X | |||
| Earnings Per Share | 5.16 X | |||
| Price To Earnings To Growth | 0.75 X | |||
| Target Price | 293.87 | |||
| Number Of Employees | 75.5 K | |||
| Beta | 1.04 | |||
| Market Capitalization | 40.29 B | |||
| Total Asset | 32.01 B | |||
| Retained Earnings | 17.85 B | |||
| Working Capital | 2.29 B | |||
| Current Asset | 7.95 B | |||
| Current Liabilities | 3.8 B | |||
| Annual Yield | 0.02 % | |||
| Five Year Return | 2.72 % | |||
| Net Asset | 32.01 B | |||
| Last Dividend Paid | 6.5 |
About Cummins Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze Cummins's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Cummins using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Cummins based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Pair Trading with Cummins
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Cummins position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Cummins will appreciate offsetting losses from the drop in the long position's value.Moving together with Cummins Stock
| 0.63 | B | Barnes Group Earnings Call This Week | PairCorr |
| 0.77 | CR | Crane Company Financial Report 8th of May 2024 | PairCorr |
| 0.67 | HI | Hillenbrand Financial Report 13th of May 2024 | PairCorr |
| 0.84 | IR | Ingersoll Rand Financial Report 1st of May 2024 | PairCorr |
Moving against Cummins Stock
| 0.7 | ATS | ATS Corporation | PairCorr |
| 0.48 | RR | Richtech Robotics Class | PairCorr |
The ability to find closely correlated positions to Cummins could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Cummins when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Cummins - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Cummins to buy it.
The correlation of Cummins is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Cummins moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Cummins moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Cummins can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Check out Cummins Piotroski F Score and Cummins Altman Z Score analysis. For more detail on how to invest in Cummins Stock please use our How to Invest in Cummins guide.You can also try the Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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.
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| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |
Is Cummins' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Cummins. If investors know Cummins will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Cummins listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.628 | Dividend Share 6.5 | Earnings Share 5.16 | Revenue Per Share 240.402 | Quarterly Revenue Growth 0.099 |
The market value of Cummins is measured differently than its book value, which is the value of Cummins that is recorded on the company's balance sheet. Investors also form their own opinion of Cummins' value that differs from its market value or its book value, called intrinsic value, which is Cummins' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Cummins' market value can be influenced by many factors that don't directly affect Cummins' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Cummins' value and its price as these two are different measures arrived at by different means. Investors typically determine if Cummins is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Cummins' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.