Cummins Inc (0I58) fair value: what the stock is really worth
As of Oct 2, 2026: fair value of Cummins Inc $283, price $529, upside -46.6%, quality 59 out of 100. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
- Fair value above price? No
- Good quality? Yes
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Cummins Inc
0I58 · LSEStretched ValuationStrong overvaluation with only moderate quality.
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Price vs Fair Value
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 24, 2026.
How to read this chart
60‑month range $104.49 – $727.31 · fair‑value band $182.05 – $405.83 · the $529.26 price screens above the $282.84 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Sep 24, 2026.
Company profile
Cummins Inc. offers various power solutions worldwide. The company operates through five segments: Engine, Distribution, Components, Power Systems, and Accelera. It offers diesel and natural gas-powered engines; and drivetrain systems, including axles, drivelines, brakes, and suspension systems; and on- and off-highway, and other products.
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Cummins Inc. offers various power solutions worldwide. The company operates through five segments: Engine, Distribution, Components, Power Systems, and Accelera. It offers diesel and natural gas-powered engines; and drivetrain systems, including axles, drivelines, brakes, and suspension systems; and on- and off-highway, and other products. The company also provides aftertreatment technology and solutions comprising custom engineering systems and integrated controls, oxidation catalysts, particulate filters, and selective catalytic reduction systems, as well as engineered components, including dosers; turbochargers, fuel systems, and valvetrain technologies; electronic control modules, sensors, and supporting software; and automated manual transmissions, and automatic transmissions for internal combustion engines. In addition, it sells and offers support services power generation systems, high-horsepower engines, and heavy-duty and medium-duty engines; offers application engineering services, custom-designed assemblies, and in-shop and field-based repair services; and retail and wholesale aftermarket parts. Further, the company offers standby and prime power generators, controls, paralleling systems, and transfer switches; turnkey solutions for distributed generation and energy management applications using natural gas, diesel, battery energy storage systems, and newer alternative sustainable fuels; diesel and natural gas high-speed, high-horsepower engines; and A/C generator/alternator products. Additionally, it provides electrified power systems, including batteries, fuel cells, and electric powertrain technologies. It sells its products to original equipment manufacturers, distributors, dealers, and other customers. The company was formerly known as Cummins Engine Company and changed its name to Cummins Inc. in 2001. Cummins Inc. was founded in 1919 and is headquartered in Columbus, Indiana.
Stock analysis
Cummins Inc (0I58) currently trades at $529.26, while our model-based Fair Value estimate is $282.84, 46.6% below the price, so the stock looks overvalued today.
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Valuation
Bull case: the Multiples group reads highest at a median of $320.01 per share, and 0 of the 25 models we run sit above the $529.26 price.
Bear case: the Asset-Based group reads lowest at $51.71, and 25 of the 25 models stay below the price. Evidence for this calculation is high.
Scenario range: $182.05 (bear) to $405.83 (bull), the price of $529.26 sits above it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 59/100 (solid quality), in the Industrials sector.
Mixed Growth: Revenue is growing, but margins or cash flow do not fully confirm the trend.
Cummins Inc reported revenue of $33.7B in FY2025 versus $24.0B in FY2021, a compound +8.8%/yr. Reported net income was $2.8B in FY2025, compounding +7.5%/yr from FY2021.
Key figures
Market cap $73.4B · P/E ratio 0.5 · P/S ratio 0.04 · EPS (TTM) $13.46 · Dividend yield 1.5% · Net margin 8.4% · Return on equity 22.0% · Return on assets (EBIT) 10.3%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 52 out of 100 (low confidence).
What moves the price
The share trades about 27% below its 52-week high and 32% above its 52-week low, currently below its 200-day average.
For context, the median of 10 Industrials peers we cover trades at −24% fair-value upside, at −47%, 0I58 screens richer than that median.
Fair Value models
All 25 models by family
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Set up alert →Quality Score breakdown
Of which business quality 57 · Market factors (momentum, volatility) 47
Revenue & earnings trend
Growth Forecast
0I58 screens overvalued: fair value 47% below the price. Compare with General Electric Company →
Compare Cummins Inc with another stock
Price, fair value, quality and upside side by side.
Context: sector, industry, market
- P/E, EV/EBITDA and margins by industry (reference tables)
- Undervalued stocks: UK Stocks
- Valuation of the UK market
Values & ESG
Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.
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