CUMMINS INC (CMI)

Engines & Turbines

Latest Price

$550.03

TTM P/E

28.38

Normalized P/E

31.27

Div Yield

1.08%

Book Value

93.03

P/B Ratio

5.91

Valuation metrics

EPS: $20.50

Book value / share: $89.03

Formula: √(22.5 × EPS × BVPS)

Graham Number

$202.65

63% 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

77% 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: 31×

Formula: EPS × P/E

P/E Fair Value

$635.50

+15% upside

85.0% held by institutions

Institution	Shares	Value	Ownership %	Change	Filing Date
BlackRock, Inc.	11.50M	$8.20B	8.33%	-332.3K	2026-06-30
VANGUARD CAPITAL MANAGEMENT LLC	9.01M	$6.43B	6.52%	+34.4K	2026-06-30
VANGUARD PORTFOLIO MANAGEMENT LLC	7.53M	$5.37B	5.46%	+37.0K	2026-06-30
STATE STREET CORP	6.91M	$4.93B	5.00%	+101.2K	2026-06-30
FMR LLC	6.09M	$4.34B	4.41%	+657.6K	2026-06-30
Fisher Asset Management, LLC	3.60M	$2.56B	2.60%	+98.3K	2026-06-30
GEODE CAPITAL MANAGEMENT, LLC	3.23M	$2.29B	2.34%	-516.9K	2026-06-30
MORGAN STANLEY	3.11M	$2.22B	2.25%	+41.4K	2026-06-30
BANK OF AMERICA CORP /DE/	1.97M	$1.41B	1.43%	+217.4K	2026-06-30
NORGES BANK	1.78M	$1.27B	1.29%	+87.8K	2026-06-30