Value Sense
CMI
Cummins Inc. (CMI)
Last Price$342.1(0.8%)
Market Cap$47.3B
LTM EPS
$28.34
EPS growth
(22.0%)
Ben Graham Fair Value
($862.4)
Overvalued (Ben Graham formula)
(352.1%)
Stock quality
6/10
Good
CMI
is 64.0% undervalued
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CMI Ben Graham Fair Value

Ben Graham Fair Value
Ben Graham Revised Fair Value

Ben Graham Fair Value Assumptions

as of Mar 10, 2025
EPS
$28.34
P/E Base for no-growth company
8.5x
EPS growth
(22.0%)
Average Yield of AAA Corporate Bonds
4.4%
Current Yield of AAA Corporate Bonds
5.1%
Last share price
$342.1
Ben Graham Fair Value (local)
($862.4)
Ben Graham Fair Value
($862.4)
352.1% overvalued

Ben Graham Fair Value Calculation

EPS
$28.34
x
(
P/E base for no-growth
8.5x
+
2
x
EPS growth
(22.0%)
)
x
Average AAA
Bond Yield
4.4%
/
Current AAA Bond Yield
5.1%
=
Ben Graham Fair Value
($862.4)

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CMI EPS growth & Dividend Yield

Annual
Quarterly
LTM
Industry Median
5Y Historical Average
Benchmark
EPS growth
Dividend Yield

CMI vs Peer Set: Ben Graham Fair Value Comparison

Ben Graham Fair Value
Ben Graham Revised Fair Value

GENERAL

BEN GRAHAM FAIR VALUE

FINANCIALS

Company name

Undervaluation / Overvaluation

Revenue growth

EPS growth

Net Income margin

Cummins Inc. logo
Cummins Inc.CMI
(352.1%)
0.1%
446.6%
11.6%
Median Peer Set
5.2%
15.7%
14.1%
Emerson Electric Co. logo
Emerson Electric Co.EMR
375.7%
15.3%
(85.1%)
11.3%
Ingersoll Rand Inc. logo
Ingersoll Rand Inc.IR
196.1%
5.2%
8.3%
11.6%
Eaton Corporation plc logo
Eaton Corporation plcETN
118.5%
11.8%
30.4%
13.9%
Roper Technologies, Inc. logo
Roper Technologies, Inc.ROP
76.9%
13.9%
11.5%
22.0%
AMETEK, Inc. logo
AMETEK, Inc.AME
49.2%
5.2%
4.4%
19.8%
Parker-Hannifin Corporation logo
Parker-Hannifin CorporationPH
(19.9%)
4.5%
36.4%
14.3%
Rockwell Automation, Inc. logo
Rockwell Automation, Inc.ROK
(35.4%)
(8.8%)
(25.2%)
11.5%
Howmet Aerospace Inc. logo
Howmet Aerospace Inc.HWM
(35.9%)
11.9%
53.5%
15.5%
Otis Worldwide Corporation logo
Otis Worldwide CorporationOTIS
(69.5%)
0.4%
19.9%
11.5%
Illinois Tool Works Inc. logo
Illinois Tool Works Inc.ITW
(141.0%)
(1.3%)
20.6%
21.9%

Explore more intrinsic value tools hub for CMI

Peter Lynch Fair Value
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FAQ

What is Cummins Inc.'s fair value according to the Ben Graham formula?

As of Dec 31, 2024, Cummins Inc.'s fair value using the Ben Graham formula is ($862.4) per share. This is calculated using Ben Graham formula, where EPS is $28.3 and BVPS (Book Value Per Share) is $82.2. The current price of $342.1 suggests Cummins Inc. may be overvalued by this conservative metric.

What is Cummins Inc. earnings per share (EPS)?

Cummins Inc. earnings per share (EPS) for the twelve months ending Dec 31, 2024, was $28.3, a (22.0%) growth year-over-year.

What is Cummins Inc.'s margin of safety based on the Ben Graham analysis?

Cummins Inc.'s margin of safety is negative 352.1%, calculated as (Graham Number - Current Price) / Current Price. A negative margin of safety suggests the stock doesn't provide the level of safety Graham typically sought in his investments.