Last Price$342.1(0.8%)
Market Cap$47.3B
DCF value
$367.3
Undervalued (DCF value)
7.4%
Discount Rate
7.8%
Long-Term Growth Rate
2.0%
Stock quality
6/10
Good
CMI DCF Model
Free Cash Flow to Firm Model
NOPAT Model
Free Cash Flow to Equity Model
Net Income Model
Millions
Billions
| Dec'20 Actual | Dec'21 Actual | Dec'22 Actual | Dec'23 Actual | Dec'24 Actual | Dec'25 Estimate | Dec'26 Estimate | Dec'27 Estimate | Dec'28 Estimate | Dec'29 Estimate | Dec'30 Estimate | Dec'31 Estimate | Dec'32 Estimate | Dec'33 Estimate | Dec'34 Estimate | Dec'35 Terminal | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
% growth | 19,811.0 (16.0%) | 24,021.0 21.3% | 28,074.0 16.9% | 34,065.0 21.3% | 34,102.0 0.1% | 34,495.3 1.2% | 37,307.6 8.2% | 34,369.2 (7.9%) | 38,523.6 12.1% | 42,625.1 10.6% | 46,548.9 9.2% | 50,163.1 7.8% | 53,335.0 6.3% | 55,938.9 4.9% | 57,863.8 3.4% | 59,021.1 2.0% |
% margin | 1,765.0 8.9% | 2,706.0 11.3% | 2,234.0 8.0% | 1,761.0 5.2% | 3,750.0 11.0% | 3,498.3 10.1% | 3,783.5 10.1% | 3,485.5 10.1% | 3,906.9 10.1% | 4,322.8 10.1% | 4,720.7 10.1% | 5,087.3 10.1% | 5,409.0 10.1% | 5,673.0 10.1% | 5,868.2 10.1% | 5,985.6 10.1% |
NOPAT % effective tax rate | 1,367.2 6.9% | 2,128.6 8.9% | 1,730.0 6.2% | 909.7 2.7% | 3,111.4 9.1% | 2,902.6 8.4% | 3,139.2 8.4% | 2,891.9 8.4% | 3,241.5 8.4% | 3,586.6 8.4% | 3,916.8 8.4% | 4,220.9 8.4% | 4,487.8 8.4% | 4,706.9 8.4% | 4,868.9 8.4% | 4,966.2 8.4% |
% of revenue | 670.0 3.4% | 662.0 2.8% | 784.0 2.8% | 1,024.0 3.0% | 1,065.0 3.1% | 1,025.8 3.0% | 1,109.5 3.0% | 1,022.1 3.0% | 1,145.6 3.0% | 1,267.6 3.0% | 1,384.3 3.0% | 1,491.8 3.0% | 1,586.1 3.0% | 1,663.6 3.0% | 1,720.8 3.0% | 1,755.2 3.0% |
% of revenue | (575.0) (2.9%) | (786.0) (3.3%) | (916.0) (3.3%) | (1,213.0) (3.6%) | (1,208.0) (3.5%) | (1,191.9) (3.5%) | (1,289.1) (3.5%) | (1,187.6) (3.5%) | (1,331.1) (3.5%) | (1,472.8) (3.5%) | (1,608.4) (3.5%) | (1,733.3) (3.5%) | (1,842.9) (3.5%) | (1,932.9) (3.5%) | (1,999.4) (3.5%) | (2,039.4) (3.5%) |
% of revenue | 554.0 2.8% | (365.0) (1.5%) | (1,006.0) (3.6%) | 2,484.0 7.3% | (2,165.0) (6.3%) | (303.6) (0.9%) | (328.3) (0.9%) | (302.5) (0.9%) | (339.0) (0.9%) | (375.1) (0.9%) | (409.6) (0.9%) | (441.4) (0.9%) | (469.4) (0.9%) | (492.3) (0.9%) | (509.2) (0.9%) | (519.4) (0.9%) |
Free Cash Flow to Firm (FCFF) % of revenue | 2,016.2 10.2% | 1,639.6 6.8% | 592.0 2.1% | 3,204.7 9.4% | 803.4 2.4% | 2,432.9 7.1% | 2,631.3 7.1% | 2,424.0 7.1% | 2,717.0 7.1% | 3,006.3 7.1% | 3,283.0 7.1% | 3,537.9 7.1% | 3,761.7 7.1% | 3,945.3 7.1% | 4,081.1 7.1% | 4,162.7 7.1% |
% of FCFF used in calculation | 81.9% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | ||||||
Discount period | 0.50 | 1.50 | 2.50 | 3.50 | 4.50 | 5.50 | 6.50 | 7.50 | 8.50 | 9.50 | ||||||
Discount factor | 0.96 | 0.89 | 0.83 | 0.77 | 0.71 | 0.66 | 0.61 | 0.57 | 0.53 | 0.49 | ||||||
Discounted FCFF (DFCFF) | 1,919.5 | 2,350.7 | 2,008.7 | 2,088.4 | 2,143.4 | 2,171.2 | 2,170.4 | 2,140.5 | 2,082.4 | 1,998.0 |
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CMI DCF Value
DCF Value Calculation
as of Mar 07, 2025
Sum of DFCFF
% share of EV
21.1B
37.5%
Terminal Value (TV)
71.7B
Discounted TV
% share of EV
35.1B
62.5%
2,264.0M
Total Debt
7,602.0M
50.8B
Shares outstanding
138.4M
FX rate
1.0
367.3
7.4% undervalued
Equity Value Bridge
CMI DCF Financials
Revenue
$34.1B -> $57.9B
5.4% CAGR
Operating Income
$3,750.0M -> $5,868.2M
4.6% CAGR
FCFF
$803.4M -> $4,081.1M
17.6% CAGR
CMI DCF sensitivity
DCF value
Long-term Terminal growth rate
1.0%
1.5%
2.0%
2.5%
3.0%
WACC
7.0%
$383.0
$407.0
$436.0
$471.0
$489.0
7.5%
$349.0
$368.0
$391.0
$419.0
$452.0
7.8%
$330.0
$347.0
$367.0
$391.0
$420.0
8.5%
$294.0
$307.0
$322.0
$340.0
$361.0
9.0%
$271.0
$283.0
$295.0
$310.0
$327.0
DCF value, undervalued / overvalued
Long-term Terminal growth rate
1.0%
1.5%
2.0%
2.5%
3.0%
WACC
7.0%
12.0%
19.0%
27.0%
38.0%
43.0%
7.5%
2.0%
8.0%
14.0%
22.0%
32.0%
7.8%
(4.0%)
1.0%
7.0%
14.0%
23.0%
8.5%
(14.0%)
(10.0%)
(6.0%)
(1.0%)
6.0%
9.0%
(21.0%)
(17.0%)
(14.0%)
(9.0%)
(4.0%)
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FAQ
What is Cummins Inc. DCF (discounted cash flow) valuation?
As of Mar 07, 2025, Cummins Inc.'s Discounted Cash Flow (DCF) valuation estimates its share price at $367.3. This suggests it may be undervalued by 7.4% compared to its current price of around $342.1, using a WACC of 7.8% and growth rates of 2.0%.
What is Cummins Inc. WACC?
As of Mar 07, 2025, Cummins Inc.'s Weighted Average Cost of Capital (WACC) is approximately 7.8%.
What is Cummins Inc. Enterprise Value?
As of Mar 07, 2025, Cummins Inc.'s Enterprise Value (EV) is approximately $56.2B. This value reflects the company's total market capitalization plus debt, minus cash and cash equivalents, providing a comprehensive measure of its overall value in the market.