Is Cummins Inc. (CMI) Undervalued?
Based on the current stock price of $519.12 and a P/E ratio of 26.88,Cummins Inc. has a PEG ratio of 65.57.
The Short Answer:
Most analysts consider a PEG ratio below 1.0 to be undervalued. With a ratio of 65.57, CMI appears to be potentially overvalued relative to its growth rate of 0.41%.
Based on a PEG ratio of 13.79 (adjusted for dividends).
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How we analyzed CMI
We calculated the PEG (Price/Earnings-to-Growth) ratio by taking the Price-to-Earnings Ratio of 26.88and dividing it by the annual growth rate of 0.41%.
PEG = 26.88 (P/E) ÷ 0.41 (Growth) = 65.57
Frequently Asked Questions about CMI
What is the current PEG Ratio for Cummins Inc. (CMI)?+
The current PEG Ratio for Cummins Inc. is 65.57. A PEG ratio below 1.0 generally suggests the stock may be undervalued relative to its growth.
Is CMI stock undervalued right now?+
Based on the PEG ratio of 65.57, Cummins Inc. appears to be potentially overvalued. Investors typically look for a PEG ratio below 1.0 to find undervalued growth stocks.
What is the PEGY Ratio for CMI?+
The PEGY ratio for Cummins Inc. is 13.79. This metric accounts for dividend yield (1.54%), providing a more complete valuation picture.