The PE ratio for Cummins stock stands at 17.86 as of Jul 23, 2025. This is calculated based on the TTM EPS of $20.27 and the stock price of $361.98 per share. An increase of 3.8% has been observed in the PE ratio compared to its average of 17.2 of the last four quarters.
Over the last ten years, the average PE ratio of Cummins has been 16.78. The current 17.86 P/E ratio is 6% higher than the historical average. Looking back at the last ten years, CMI's PE ratio peaked in the Dec 2023 quarter at 46.16, with a price of $239.57 and an EPS of $5.19. The Mar 2020 quarter marked the lowest point at 9.58, with a price of $131.66 and an EPS of $13.74.
Maximum annual increase: 189.59% in 2023
Maximum annual decrease: -73.55% in 2024
Year | PE ratio | PE change | Price | EPS |
---|---|---|---|---|
2024 | 12.21 | -73.55% | $348.6 | $28.55 |
2023 | 46.16 | 189.59% | $239.57 | $5.19 |
2022 | 15.94 | 7.7% | $242.29 | $15.2 |
2021 | 14.8 | -21.36% | $218.14 | $14.74 |
2020 | 18.82 | 52.88% | $227.1 | $12.07 |
2019 | 12.31 | 21.64% | $178.96 | $14.54 |
2018 | 10.12 | -65.68% | $133.64 | $13.2 |
2017 | 29.49 | 77.97% | $176.64 | $5.99 |
2016 | 16.57 | 47.95% | $136.67 | $8.25 |
2015 | 11.2 | -29.78% | $88.01 | $7.86 |
2014 | 15.95 | -10.29% | $144.17 | $9.04 |
2013 | 17.78 | 42.58% | $140.97 | $7.93 |
2012 | 12.47 | 35.69% | $108.35 | $8.69 |
2011 | 9.19 | -55.82% | $88.02 | $9.58 |
2010 | 20.8 | -1.56% | $110.01 | $5.29 |
Year | PE ratio | PE change | Price | EPS |
---|---|---|---|---|
Mar 2025 | 15.46 | 26.62% | $313.44 | $20.27 |
Dec 2024 | 12.21 | -42.68% | $348.6 | $28.55 |
Sep 2024 | 21.3 | 7.14% | $323.79 | $15.2 |
Jun 2024 | 19.88 | -7.49% | $276.93 | $13.93 |
Mar 2024 | 21.49 | -53.44% | $294.65 | $13.71 |
Dec 2023 | 46.16 | 298.96% | $239.57 | $5.19 |
Sep 2023 | 11.57 | -15.3% | $228.46 | $19.75 |
Jun 2023 | 13.66 | 2.02% | $245.16 | $17.95 |
Mar 2023 | 13.39 | -16% | $238.88 | $17.84 |
Dec 2022 | 15.94 | 5.91% | $242.29 | $15.2 |
Sep 2022 | 15.05 | 12.06% | $203.51 | $13.52 |
Jun 2022 | 13.43 | -11.06% | $193.53 | $14.41 |
Mar 2022 | 15.1 | 2.03% | $205.11 | $13.58 |
Dec 2021 | 14.8 | -0.4% | $218.14 | $14.74 |
Oct 2021 | 14.86 | -7.76% | $227.96 | $15.34 |
You can ether set your own Fair P/E multiple or use one of the automatically calculated Fair P/E multiples.
PE Ratio is an attempt to estimate a fair PE ratio of a stock based on its earnings and growth rate.
This formula is a modified version of the classic Graham-Dodd Formula (V= EPS x (8.5+2g)), originally developed by Benjamin Graham, to calculate the fair price of a stock based on its earnings and growth rate.
The formula we have created is an adaptation of this approach, designed to maintain a balance between simplicity and growth sensitivity.
It is calculated using the following formula:
IF g < 5: Fair PE = b
IF g >= 5: Fair PE = m × g
Here’s what each part of the formula means:
g: Growth is calculated as the average of the three-year average EPS growth rate and the one-year EPS growth rate (annually). This approach provides a balanced measure of growth by factoring in both the long-term growth trend and the most recent annual growth performance. If one of the growth metrics is not available, the remaining metric is used to determine growth. The fair P/E value is capped at 100 to prevent distortions caused by extreme EPS growth rates, such as those resulting from large percentage increases from a low base.
m: This is the long term historical median PEG (Price/Earnings to Growth) ratio of the overall market. It serves as a benchmark, adjusting the Fair PE based on typical market conditions.
b: Base PE (static value set to 8). If the company's growth rate is less than 5, the Fair PE is set at a conservative baseline of 8. This is because declining companies generally deserve a lower PE ratio.
Fixed: The Fair PE ratio for all data points is calculated using a single, constant average EPS growth rate, determined based on the most recent period. This means that the same growth rate is applied to all historical data points. Dynamic: The Fair PE ratio for each historical data point is calculated using the trailing average EPS growth rate specific to that point in time. This means that for each data point, the corresponding trailing EPS growth rate is used, ensuring that the Fair PE ratio reflects the growth conditions that were relevant at that specific point in history.
Currently, CMI's PE ratio is higher than its 5 and 10-year averages, but it is lower than its 3-year average.
In comparison to its peers GE and CAT, CMI's PE ratio is lower, but it is higher than PCAR's. Cummins's current PE ratio of 17.86 is lower than the average of its peers, which is 30.06.
Stock name | PE ratio | Market cap |
---|---|---|
PCAR Paccar Inc | 15.23 | $52.85B |
CMI Cummins Inc | 17.98 | $50.21B |
CAT Caterpillar Inc | 20.84 | $202.33B |
BWA Borgwarner Inc | 27.35 | $7.93B |
GE General Electric Co | 37.24 | $285.52B |
RBC RBC Bearings Inc. | 49.67 | $12.13B |
As of Jul 23, 2025, CMI stock has a price to earnings ratio of 17.86.
The average PE ratio for CMI stock over the past 3 years is 18.74.
The average PE ratio for CMI stock over the past 5 years is 17.84.
Over the last ten years, the Dec 2023 quarter recorded the highest quarterly PE ratio at 46.16.
The current PE ratio of CMI is 6% higher than the 10-year historical average.
The P/E ratio is obtained by dividing the latest price of a stock by its trailing twelve months EPS. As of today (Jul 23, 2025), Cummins's share price is $361.98. The company's earnings per share for the trailing twelve months (TTM) ending Mar 2025 is $20.27. Therefore, Cummins's PE ratio for today is 17.86. PE RATIO(17.86) = STOCK PRICE($361.98) / TTM EPS($20.27)
All PE ratio stats are based on quarterly TTM periods, unless otherwise specified.