What Is CMI Fair Value?
Cummins (CMI) fair value estimate using multiple valuation models, updated daily.
As of July 16, 2026, Cummins (CMI) has a composite fair value estimate of $466.31 based on four valuation models: DCF (35% weight), Graham Number (25% weight), PEG (25% weight), and DDM (15% weight). The current market price is $666.13, suggesting the stock is overvalued by 30.0%.
Data as of July 16, 2026 (today)
Composite Fair Value
Overvalued4 of 4 models$466.31
vs. current price of $666.13(-30.0%)
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 →
$540.62
-18.8%Overvalued
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 →
$295.06
-55.7%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 →
$239.10
-64.1%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.
$558.68
-16.1%Overvalued
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 $666.13 is 18.8% above this estimate
View 10-year cash flow projections
| Year | Projected FCF (Free Cash Flow) | Present Value |
|---|---|---|
| Year 1 | $2.55B | $2.31B |
| Year 2 | $3.05B | $2.50B |
| Year 3 | $3.66B | $2.70B |
| Year 4 | $4.37B | $2.92B |
| Year 5 | $5.24B | $3.16B |
| Year 6 | $6.27B | $3.42B |
| Year 7 | $7.50B | $3.70B |
| Year 8 | $8.97B | $4.00B |
| Year 9 | $10.74B | $4.33B |
| Year 10 | $12.85B | $4.68B |
| Terminal Value | $162.21B | $59.10B |
What Are CMI's Key Financial Metrics?
Earnings & Growth
Current Price
$666.13
EPS (TTM)
$18.98
Forward P/E
19.6
Profit Margin
7.9%
Cash & Balance Sheet
Free Cash Flow
1.7B
EBITDA
5B
Book Value
$89.51
Total Debt
8.2B
What Do Analysts Say About CMI?
Low
$520.00
Average
$754.39
High
$901.00
Upside
+13.2%
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 $466.31. The stock is currently trading at $666.13, which makes it overvalued 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 overvalued. The current price of $666.13 is 30.0% above our estimated fair value of $466.31.
What do Wall Street analysts say about CMI?
19 analysts cover Cummins with a consensus rating of "Buy." The average price target is $754.39, ranging from $520.00 to $901.00. This implies 13.2% upside from the current price.