What Is CMI Fair Value?
Cummins (CMI) fair value estimate using multiple valuation models, updated daily.
As of August 29, 2026, Cummins (CMI) has a composite fair value estimate of $500.06 based on four valuation models: DCF (35% weight), Graham Number (25% weight), PEG (25% weight), and DDM (15% weight). The current market price is $564.85, suggesting the stock is fair value by 11.5%.
Data as of August 29, 2026 (today)
Composite Fair Value
Fair Value4 of 4 models$500.06
vs. current price of $564.85(-11.5%)
How Is CMI Fair Value Calculated?
Four independent models estimate what CMI is worth. Each uses different inputs and assumptions. The composite blends them by weight.
CMI Intrinsic Value
Forward-looking models based on future cash flows
DCF (Discounted Cash Flow)
35% weightEstimates how much cash the company will generate over the next 10 years, then calculates what all that future cash is worth in today's dollars. Includes a 15% safety cushion. Try the standalone DCF calculator →
$606.46
+7.4%Fair Value
Inputs used
DDM (Dividend Discount Model)
15% weightIf a company pays you dividends, this model asks: how much are all those future dividend payments worth today? Only works for stocks that pay dividends. Try the intrinsic value calculator →
$283.45
-49.8%Overvalued
Inputs used
CMI Fair Value
Current fundamentals: earnings, assets, and growth rate
Graham Number (Value Investing)
25% weightCreated by legendary investor Benjamin Graham. It looks at two things: how much the company earns (EPS) and what its assets are worth (Book Value), then calculates the maximum price a careful investor should pay. Try the fair value calculator →
$244.93
-56.6%Overvalued
Inputs used
PEG (Price/Earnings to Growth)
25% weightChecks if you're paying a fair price for the company's growth. A fast-growing company deserves a higher price than a slow one. This model finds the right price based on how fast earnings are growing.
$586.39
+3.8%Fair Value
Inputs used
What If You Change the Assumptions?
Drag the sliders to test different scenarios. Tap the ? buttons to learn what each input means.
Your DCF Fair Value
Current price $564.85 is 7.4% below this estimate
View 10-year cash flow projections
| Year | Projected FCF (Free Cash Flow) | Present Value |
|---|---|---|
| Year 1 | $2.69B | $2.43B |
| Year 2 | $3.24B | $2.65B |
| Year 3 | $3.90B | $2.88B |
| Year 4 | $4.70B | $3.14B |
| Year 5 | $5.67B | $3.42B |
| Year 6 | $6.83B | $3.73B |
| Year 7 | $8.24B | $4.06B |
| Year 8 | $9.93B | $4.42B |
| Year 9 | $11.96B | $4.82B |
| Year 10 | $14.42B | $5.25B |
| Terminal Value | $181.54B | $66.04B |
What Are CMI's Key Financial Metrics?
Earnings & Growth
Current Price
$564.85
EPS (TTM)
$19.26
Forward P/E
16.4
Profit Margin
7.8%
Cash & Balance Sheet
Free Cash Flow
2.2B
EBITDA
5B
Book Value
$93.32
Total Debt
8.3B
What Do Analysts Say About CMI?
Low
$530.00
Average
$757.02
High
$894.00
Upside
+34.0%
CMI Fair Value FAQ
What is the fair value of CMI?
Based on our composite model (DCF 35%, Graham 25%, PEG 25%, DDM 15%), CMI's estimated fair value is $500.06. The stock is currently trading at $564.85, which makes it fair value by our analysis.
How is CMI's fair value calculated?
We use four valuation methods: Discounted Cash Flow (DCF), Graham Number, PEG-based Fair Value, and Dividend Discount Model (for dividend-paying stocks). The composite score weights DCF at 35%, Graham and PEG at 25% each, and DDM at 15%. When a model can't be applied, its weight is redistributed proportionally.
Is CMI overvalued or undervalued?
Based on our analysis, CMI is fair value. The current price of $564.85 is 11.5% above our estimated fair value of $500.06.
What do Wall Street analysts say about CMI?
20 analysts cover Cummins with a consensus rating of "Buy." The average price target is $757.02, ranging from $530.00 to $894.00. This implies 34.0% upside from the current price.