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Cummins (Cummins) GF Value

: $300.03 (As of Today)
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The GF Value represents the current intrinsic value of a stock derived from our exclusive method. The GF Value Line on our summary page gives an overview of the fair value that the stock should be traded at. It is calculated based on three factors:

  1. Historical multiples (PE Ratio, PS Ratio, PB Ratio and Price-to-Free-Cash-Flow) that the stock has traded at.
  2. GuruFocus adjustment factor based on the company’s past returns and growth.
  3. Future estimates of the business performance.

We believe the GF Value Line is the fair value that the stock should be traded at. The stock price will most likely fluctuate around the GF Value Line. If the stock price is significantly above the GF Value Line, it is overvalued and its future return is likely to be poor. On the other hand, if it is significantly below the GF Value Line, its future return will likely be higher.

Please note, "Possible Value Trap, Think Twice" is for the companies that look very undervalued, but either in the long term trend of business decline, or in financial distress.

As of today (2024-04-19), Cummins's share price is $291.42. Cummins's GF Value is $300.03. Therefore, Cummins's Price-to-GF-Value for today is 0.97.

Based on the relationship between the current stock price and the GF Value, GuruFocus believes Cummins is Fairly Valued.


Cummins  (NYSE:CMI) GF Value Explanation

Based on the relationship between the current stock price and the GF Value, GuruFocus provides the following 6 evaluations:

Posssible Evaluations All-in-One Screener Examples (2)
Possible Value Trap, Think Twice (1)Predictable Companies that possibly be Value Traps
Significantly OvervaluedPredictable Companies which are Significantly Overvalued
Modestly OvervaluedPredictable Companies which are Modestly Overvalued
Fairly ValuedPredictable High Quality Companies which are Fairly Valued
Modestly Undervalued (3)Predictable High Quality Companies which are Modestly Undervalued
Significantly Undervalued (3)Predictable High Quality Companies which are Significantly Undervalued

(1) "Possible Value Trap, Think Twice" is for the companies that look very undervalued, but either in the long term trend of business decline, or in financial distress.

(2) These are some simple examples. You can access our GF Valuation filter under All-in-One Screener’s Fundamental tab, and Price-to-GF-Value filter under Valuation Ratio tab and set your own criteria.

(3) There is only a sufficient margin of safety when the stock is undervalued.

Cummins's Price-to-GF-Value for today is calculated as

Price-to-GF-Value=Share Price/GF Value
=291.42/300.03
=0.97

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Cummins GF Value Related Terms

Thank you for viewing the detailed overview of Cummins's GF Value provided by GuruFocus.com. Please click on the following links to see related term pages.


Cummins (Cummins) Business Description

Traded in Other Exchanges
Address
500 Jackson Street, Box 3005, Columbus, IN, USA, 47202-3005
Cummins is the top manufacturer of diesel engines used in commercial trucks, off-highway equipment, and railroad locomotives, in addition to standby and prime power generators. The company also sells powertrain components, which include transmissions, turbochargers, aftertreatment systems, and fuel systems. Cummins is in the unique position of competing with its primary customers, heavy-duty truck manufacturers, who make and aggressively market their own engines. Despite robust competition across all its segments and increasing government regulation of carbon emissions, Cummins has maintained its leadership position in the industry.
Executives
Jennifer Rumsey officer: Chief Technical Officer 500 JACKSON STREET, COLUMBUS IN 47201
Daniel William Fisher director 2526 SPRUCE MEADOWS DRIVE, BROOMFIELD CO 80023
Jonathan David Wood officer: Vice President & CTO 500 JACKSON STREET, COLUMBUS IN 47201
Sharon R Barner officer: VP - General Counsel 500 JACKSON STREET, COLUMBUS IN 47201
Georgia R Nelson director C/O TOWER AUTOMOTIVE INC, 27175 HAGGERTY ROAD, NOVI MI 48377-3626
Di Leo Allen Bruno V director INTERNATIONAL BUSINESS MACHINES CORP., C/O SEC'Y'S OFFICE, ONE NEW ORCHARD ROAD, ARMONK NY 10504
Franklin R Changdiaz director 500 JACKSON ST., M/C 60701, COLUMBUS IN 47201
Tony Satterthwaite officer: President - Distribution 1400 73RD AVENUE NE, MINNEAPOLIS MN 55432
Norman Thomas Linebarger officer: President-Power Gen.
Tracy A Embree officer: VP & Pres. - Components Group 500 JACKSON STREET, COLUMBUS IN 47201
Mahesh Narang officer: VP & President - Components 500 JACKSON STREET, COLUMBUS IN 47201
Mark Andrew Smith officer: VP - Operations Finance 500 JACKSON STREET, COLUMBUS IN 47201
Marvin Boakye officer: VP - Chief Human Resources Off PO BOX 99900, LOUISVILLE KY 40269
Srikanth Padmanabhan officer: President - Engine Busines 500 JACKSON STREET, COLUMBUS IN 47201
Jennifer Mary Bush officer: VP & Pres. - Power Systems CENTURY ALUMINUM COMPANY, 1 S. WACKER DRIVE, SUITE 1000, CHICAGO IL 60606