What Is CMI Fair Value?
Cummins (CMI) fair value estimate using multiple valuation models, updated daily.
As of October 14, 2026, Cummins (CMI) has a composite fair value estimate of $518.02 based on four valuation models: DCF (35% weight), Graham Number (25% weight), PEG (25% weight), and DDM (15% weight). The current market price is $529.35, suggesting the stock is fair value by 2.1%.
Data as of October 14, 2026 (today)
Composite Fair Value
Fair Value4 of 4 models$518.02
vs. current price of $529.35(-2.1%)
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 →
$639.36
+20.8%Undervalued
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 →
$287.22
-45.7%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 →
$244.99
-53.7%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.
$601.69
+13.7%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 $529.35 is 20.8% below this estimate
View 10-year cash flow projections
| Year | Projected FCF (Free Cash Flow) | Present Value |
|---|---|---|
| Year 1 | $2.70B | $2.44B |
| Year 2 | $3.27B | $2.67B |
| Year 3 | $3.95B | $2.93B |
| Year 4 | $4.79B | $3.20B |
| Year 5 | $5.79B | $3.51B |
| Year 6 | $7.01B | $3.84B |
| Year 7 | $8.49B | $4.21B |
| Year 8 | $10.28B | $4.60B |
| Year 9 | $12.44B | $5.04B |
| Year 10 | $15.06B | $5.52B |
| Terminal Value | $191.54B | $70.20B |
What Are CMI's Key Financial Metrics?
Earnings & Growth
Current Price
$529.35
EPS (TTM)
$19.57
Forward P/E
15.2
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
$728.66
High
$890.00
Upside
+37.7%
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 $518.02. The stock is currently trading at $529.35, 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 $529.35 is 2.1% above our estimated fair value of $518.02.
What do Wall Street analysts say about CMI?
19 analysts cover Cummins with a consensus rating of "Buy." The average price target is $728.66, ranging from $530.00 to $890.00. This implies 37.7% upside from the current price.