CUMMINS INC (CMI)

Engines & Turbines

Latest Price

$634.20

TTM P/E

32.95

Normalized P/E

36.81

Div Yield

0.92%

Book Value

89.31

P/B Ratio

7.10

Valuation metrics

EPS: $20.50

Book value / share: $89.03

Formula: √(22.5 × EPS × BVPS)

Graham Number

$202.65

68% downside

Norm. op. income: $2.7B (median of 7yr)

Tax rate: 23%

Discount rate: 10%

Growth assumption: zero (EPV is a no-growth value)

Earnings Power Value

$128.17

80% downside

Base FCF: $1.5B (median of recent 5yr)

Growth: -13%/yr (median YOY, capped at 25%)

Discount rate: 10%

Terminal growth: 3%

Projection horizon: 10 years

DCF Fair Value

$29.10

95% downside

EPS: $20.50

Target P/E: 37×

Formula: EPS × P/E

P/E Fair Value

$758.50

+20% upside

81.8% held by institutions

Institution	Shares	Value	Ownership %	Change	Filing Date
BlackRock, Inc.	11.84M	$6.37B	8.56%	+33.2K	2026-03-31
VANGUARD CAPITAL MANAGEMENT LLC	8.98M	$4.83B	6.49%	--	2026-03-31
VANGUARD PORTFOLIO MANAGEMENT LLC	7.50M	$4.03B	5.42%	--	2026-03-31
STATE STREET CORP	6.81M	$3.66B	4.92%	+297.8K	2026-03-31
FMR LLC	5.43M	$2.92B	3.93%	-220.9K	2026-03-31
GEODE CAPITAL MANAGEMENT, LLC	3.75M	$2.01B	2.71%	+161.9K	2026-03-31
Fisher Asset Management, LLC	3.50M	$1.88B	2.53%	+86.3K	2026-03-31
MORGAN STANLEY	3.07M	$1.65B	2.22%	-167.8K	2026-03-31
BANK OF AMERICA CORP /DE/	1.76M	$945.0M	1.27%	+121.1K	2026-03-31
NORTHERN TRUST CORP	1.72M	$926.0M	1.25%	+20.5K	2026-03-31