Cummins Inc. (CMI) P/E Ratio History
ExpensiveTrading at 35.0x vs 5Y avg 18.7x · 95th percentile · Material premium to history · Data 1992–2026
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P/E Ratio Analysis
As of June 21, 2026, Cummins Inc. (CMI) trades at a price-to-earnings ratio of 35.0x, with a stock price of $716.86 and trailing twelve-month earnings per share of $19.26.
The current P/E is 87% above its 5-year average of 18.7x. Over the past five years, CMI's P/E has ranged from a low of 11.6x to a high of 46.9x, placing the current valuation at the 95th percentile of its historical range.
Compared to the Industrials sector median P/E of 25.6x, CMI trades at a 37% premium to its sector peers. The sector includes 403 companies with P/E ratios ranging from 0.1x to 198.8x.
The PEG ratio of 3.10 (P/E divided by -28% EPS growth) suggests the stock may be expensive relative to its earnings growth. Peter Lynch popularized the rule that a PEG below 1.0 indicates an attractive entry point.
Relative to the broader market, CMI commands a significant premium over the S&P 500 median P/E of 24.4x. Investors should consider the company's growth prospects, competitive position, and earnings quality when evaluating whether the current valuation is justified.
For a comprehensive intrinsic value estimate using discounted cash flow analysis, see our CMI DCF Valuation Calculator →
Note: P/E ratio is just one valuation metric. It does not account for balance sheet strength, cash flow quality, or growth sustainability. Always conduct comprehensive due diligence before making investment decisions.
CMI Cross-Benchmark Valuation
How does the current P/E compare to sector peers and the broader market?
CMI P/E vs Peers
Engines and power generation equipment peers sorted by market cap
| Company | Market Cap | P/E Ratio | PEG Ratio | EPS Growth (1Y) |
|---|---|---|---|---|
| $63B | 26.4 | 2.09 | -43% | |
| $459B | 52.4 | 1.86 | -15% | |
| $159B | 31.9 | 1.95 | -28% | |
| $8B | 11.7Lowest | 1.01 | +271%Best | |
| $13B | 25.5 | - | -59% | |
| $10B | 16.2 | 0.71Best | -12% | |
| $15B | 56.1 | - | -15% | |
| $46B | 40.1 | 1.56 | +13% | |
| $3B | 62.4 | 2.32 | +24% |
Lower P/E can signal a discount or weaker growth expectations; PEG adds growth context.
CMI Historical P/E Data (1992–2026)
Quarterly P/E ratios calculated from closing price and TTM EPS
| Quarter | Period End | Price | TTM EPS | P/E Ratio | vs Avg |
|---|---|---|---|---|---|
| FY2026 Q1 | - | $538.02 | $19.25 | 27.9x | -6% |
| FY2025 Q4 | Dec 31 2025 | $510.45 | $20.50 | 24.9x | -16% |
| FY2025 Q3 | - | $422.37 | $19.25 | 21.9x | -26% |
| FY2025 Q2 | Jun 30 2025 | $327.50 | $21.26 | 15.4x | -48% |
| FY2025 Q1 | Mar 31 2025 | $313.44 | $20.10 | 15.6x | -47% |
| FY2024 Q4 | - | $348.60 | $28.17 | 12.4x | -58% |
| FY2024 Q3 | Sep 30 2024 | $323.79 | $15.07 | 21.5x | -27% |
| FY2024 Q2 | Jun 30 2024 | $276.93 | $13.80 | 20.1x | -32% |
| FY2024 Q1 | Mar 31 2024 | $294.65 | $13.59 | 21.7x | -27% |
| FY2023 Q4 | Dec 31 2023 | $239.57 | $5.11 | 46.9x | +58% |
| FY2023 Q3 | Sep 30 2023 | $228.46 | $19.62 | 11.6x | -61% |
| FY2023 Q2 | Jun 30 2023 | $245.16 | $17.85 | 13.7x | -54% |
| FY2023 Q1 | Mar 31 2023 | $238.88 | $17.74 | 13.5x | -54% |
| FY2022 Q4 | Dec 31 2022 | $242.29 | $15.11 | 16.0x | -46% |
| FY2022 Q3 | Sep 30 2022 | $203.51 | $13.44 | 15.1x | -49% |
| FY2022 Q2 | - | $193.53 | $14.31 | 13.5x | -54% |
| FY2022 Q1 | - | $205.11 | $13.47 | 15.2x | -49% |
| FY2021 Q4 | Dec 31 2021 | $218.14 | $14.62 | 14.9x | -50% |
| FY2021 Q3 | Oct 03 2021 | $227.96 | $15.22 | 15.0x | -49% |
| FY2021 Q2 | Jul 04 2021 | $241.84 | $14.89 | 16.2x | -45% |
| FY2021 Q1 | Apr 04 2021 | $257.72 | $12.65 | 20.4x | -31% |
| FY2020 Q4 | - | $227.10 | $11.99 | 18.9x | -36% |
| FY2020 Q3 | Sep 27 2020 | $208.63 | $10.60 | 19.7x | -33% |
| FY2020 Q2 | Jun 28 2020 | $168.75 | $11.21 | 15.1x | -49% |
| FY2020 Q1 | Mar 29 2020 | $131.66 | $13.62 | 9.7x | -67% |
| FY2019 Q4 | - | $178.96 | $14.41 | 12.4x | -58% |
| FY2019 Q3 | Sep 29 2019 | $161.30 | $16.12 | 10.0x | -66% |
| FY2019 Q2 | Jun 30 2019 | $171.34 | $16.43 | 10.4x | -65% |
| FY2019 Q1 | Mar 31 2019 | $157.87 | $15.48 | 10.2x | -66% |
| FY2018 Q4 | Dec 31 2018 | $133.64 | $13.24 | 10.1x | -66% |
| FY2018 Q3 | Sep 30 2018 | $146.07 | $7.91 | 18.5x | -38% |
| FY2018 Q2 | Jul 01 2018 | $133.00 | $6.34 | 21.0x | -29% |
| FY2018 Q1 | Apr 01 2018 | $162.09 | $5.55 | 29.2x | -1% |
| FY2017 Q4 | Dec 31 2017 | $176.64 | $5.95 | 29.7x | +0% |
| FY2017 Q3 | Oct 01 2017 | $168.03 | $9.85 | 17.1x | -42% |
| FY2017 Q2 | Jul 02 2017 | $162.22 | $8.86 | 18.3x | -38% |
| FY2017 Q1 | Apr 02 2017 | $151.20 | $8.73 | 17.3x | -41% |
| FY2016 Q4 | Dec 31 2016 | $136.67 | $8.24 | 16.6x | -44% |
| FY2016 Q3 | Oct 02 2016 | $128.15 | $6.91 | 18.5x | -37% |
| FY2016 Q2 | Jul 03 2016 | $112.92 | $7.33 | 15.4x | -48% |
| FY2016 Q1 | Apr 03 2016 | $110.12 | $7.55 | 14.6x | -51% |
| FY2015 Q4 | - | $88.01 | $7.82 | 11.3x | -62% |
| FY2015 Q3 | Sep 27 2015 | $110.52 | $9.35 | 11.8x | -60% |
| FY2015 Q2 | Jun 28 2015 | $133.54 | $9.53 | 14.0x | -53% |
| FY2015 Q1 | Mar 29 2015 | $137.46 | $9.34 | 14.7x | -50% |
| FY2014 Q4 | Dec 31 2014 | $144.17 | $9.03 | 16.0x | -46% |
| FY2014 Q3 | Sep 28 2014 | $133.78 | $8.92 | 15.0x | -49% |
| FY2014 Q2 | Jun 29 2014 | $154.65 | $8.50 | 18.2x | -39% |
| FY2014 Q1 | Mar 30 2014 | $146.00 | $8.27 | 17.7x | -40% |
| FY2013 Q4 | - | $140.97 | $7.93 | 17.8x | -40% |
| FY2013 Q3 | Sep 29 2013 | $133.54 | $7.55 | 17.7x | -40% |
| FY2013 Q2 | Jun 30 2013 | $108.46 | $7.51 | 14.4x | -51% |
| FY2013 Q1 | Mar 31 2013 | $115.81 | $7.78 | 14.9x | -50% |
| FY2012 Q4 | Dec 31 2012 | $108.35 | $8.67 | 12.5x | -58% |
| FY2012 Q3 | Sep 30 2012 | $92.21 | $9.55 | 9.7x | -67% |
| FY2012 Q2 | Jul 01 2012 | $96.91 | $10.04 | 9.7x | -67% |
| FY2012 Q1 | Apr 01 2012 | $120.04 | $10.17 | 11.8x | -60% |
| FY2011 Q4 | Dec 31 2011 | $88.02 | $9.54 | 9.2x | -69% |
| FY2011 Q3 | Sep 25 2011 | $86.26 | $8.55 | 10.1x | -66% |
| FY2011 Q2 | Jun 26 2011 | $96.67 | $7.64 | 12.7x | -57% |
| FY2011 Q1 | Mar 27 2011 | $104.54 | $6.29 | 16.6x | -44% |
| FY2010 Q4 | Dec 31 2010 | $110.01 | $5.29 | 20.8x | -30% |
| FY2010 Q3 | Sep 26 2010 | $90.86 | $4.80 | 18.9x | -36% |
| FY2010 Q2 | Jun 27 2010 | $72.59 | $3.84 | 18.9x | -36% |
| FY2010 Q1 | Mar 28 2010 | $62.36 | $2.87 | 21.7x | -27% |
| FY2009 Q4 | - | $45.86 | $2.16 | 21.3x | -28% |
| FY2009 Q3 | Sep 27 2009 | $44.11 | $1.02 | 43.4x | +47% |
| FY2009 Q2 | Jun 28 2009 | $34.90 | $1.71 | 20.5x | -31% |
| FY2009 Q1 | Mar 29 2009 | $26.24 | $2.92 | 9.0x | -70% |
| FY2008 Q4 | Dec 31 2008 | $26.73 | $3.85 | 6.9x | -77% |
| FY2008 Q3 | Sep 28 2008 | $46.03 | $4.63 | 9.9x | -66% |
| FY2008 Q2 | Jun 29 2008 | $64.34 | $4.38 | 14.7x | -50% |
| FY2008 Q1 | Mar 30 2008 | $47.52 | $3.95 | 12.0x | -59% |
| FY2007 Q4 | Dec 31 2007 | $63.69 | $3.69 | 17.3x | -42% |
| FY2007 Q3 | Sep 30 2007 | $63.95 | $3.63 | 17.6x | -40% |
| FY2007 Q2 | Jun 30 2007 | $50.61 | $3.55 | 14.3x | -52% |
| FY2007 Q1 | Apr 01 2007 | $36.18 | $3.59 | 10.1x | -66% |
| FY2006 Q4 | Dec 31 2006 | $29.54 | $3.54 | 8.3x | -72% |
| FY2006 Q3 | Oct 01 2006 | $29.81 | $3.42 | 8.7x | -71% |
| FY2006 Q2 | Jun 30 2006 | $30.56 | $3.31 | 9.2x | -69% |
| FY2006 Q1 | Apr 02 2006 | $26.28 | $2.92 | 9.0x | -70% |
| FY2005 Q4 | Dec 31 2005 | $22.43 | $2.74 | 8.2x | -72% |
| FY2005 Q3 | Sep 25 2005 | $22.44 | $2.62 | 8.6x | -71% |
| FY2005 Q2 | Jun 26 2005 | $18.08 | $2.49 | 7.3x | -75% |
| FY2005 Q1 | Mar 27 2005 | $18.22 | $2.22 | 8.2x | -72% |
| FY2004 Q4 | Dec 31 2004 | $20.95 | $1.91 | 11.0x | -63% |
| FY2004 Q3 | Sep 26 2004 | $17.93 | $1.44 | 12.5x | -58% |
| FY2004 Q2 | Jun 27 2004 | $15.87 | $0.99 | 16.0x | -46% |
| FY2004 Q1 | Mar 28 2004 | $14.08 | $0.64 | 22.2x | -25% |
| FY2003 Q4 | Dec 31 2003 | $12.24 | $0.24 | 50.0x | +69% |
| FY2003 Q3 | Sep 28 2003 | $11.37 | $0.40 | 28.8x | -3% |
| FY2003 Q2 | Jun 29 2003 | $8.97 | $0.48 | 18.5x | -38% |
| FY2003 Q1 | Mar 30 2003 | $6.15 | $0.48 | 12.8x | -57% |
| FY2002 Q4 | - | $7.03 | $0.53 | 13.2x | -55% |
| FY2002 Q3 | Sep 29 2002 | $6.01 | $0.17 | 35.2x | +19% |
| FY2000 Q4 | Dec 31 2000 | $9.48 | $0.04 | 237.0x | +701% |
| FY2000 Q3 | Sep 24 2000 | $7.81 | $0.99 | 7.9x | -73% |
| FY2000 Q2 | Jun 25 2000 | $7.48 | $1.17 | 6.4x | -78% |
| FY2000 Q1 | Mar 26 2000 | $9.53 | $1.14 | 8.4x | -72% |
| FY1999 Q4 | Dec 31 1999 | $12.08 | $1.03 | 11.7x | -60% |
| FY1999 Q3 | Sep 26 1999 | $12.36 | $1.06 | 11.7x | -61% |
| FY1999 Q2 | Jun 27 1999 | $14.48 | $0.01 | 1448.0x | +4793% |
| FY1998 Q3 | Sep 27 1998 | $7.84 | $0.09 | 92.2x | +212% |
| FY1998 Q2 | Jun 28 1998 | $12.91 | $1.15 | 11.3x | -62% |
| FY1998 Q1 | Mar 29 1998 | $13.73 | $1.15 | 12.0x | -59% |
| FY1997 Q4 | Dec 31 1997 | $14.77 | $1.37 | 10.8x | -64% |
| FY1997 Q3 | Sep 28 1997 | $19.42 | $1.23 | 15.8x | -47% |
| FY1997 Q2 | Jun 29 1997 | $17.78 | $1.04 | 17.1x | -42% |
| FY1997 Q1 | Mar 30 1997 | $12.94 | $0.97 | 13.3x | -55% |
| FY1996 Q4 | - | $11.50 | $1.00 | 11.5x | -61% |
| FY1996 Q3 | Sep 29 1996 | $9.84 | $0.99 | 9.9x | -66% |
| FY1996 Q2 | Jun 30 1996 | $10.09 | $1.11 | 9.1x | -69% |
| FY1996 Q1 | Mar 31 1996 | $10.09 | $1.26 | 8.0x | -73% |
| FY1995 Q4 | Dec 31 1995 | $9.25 | $1.37 | 6.8x | -77% |
| FY1995 Q3 | Oct 01 1995 | $9.63 | $1.53 | 6.3x | -79% |
| FY1995 Q2 | Jul 02 1995 | $10.91 | $1.62 | 6.7x | -77% |
| FY1995 Q1 | Apr 02 1995 | $11.19 | $1.60 | 7.0x | -76% |
| FY1994 Q4 | Dec 31 1994 | $11.31 | $1.53 | 7.4x | -75% |
| FY1994 Q3 | Oct 02 1994 | $9.84 | $1.45 | 6.8x | -77% |
| FY1994 Q2 | Jul 03 1994 | $10.81 | $1.36 | 7.9x | -73% |
| FY1994 Q1 | Apr 03 1994 | $12.31 | $1.29 | 9.5x | -68% |
| FY1993 Q4 | Dec 31 1993 | $13.44 | $1.23 | 10.9x | -63% |
| FY1992 Q3 | Sep 30 1992 | $8.25 | $0.36 | 23.2x | -22% |
| FY1992 Q2 | - | $8.56 | $0.13 | 68.3x | +131% |
Average P/E for displayed period: 29.6x
Full Stock Analysis
Deep dive into CMI consensus models and risk factors.
Intrinsic Valuation
DCF models, multiple analysis, and analyst estimates.
Historical Returns
34+ years return with dividends reinvested.
DCA Calculator
See how regular investing compounds over time.
Peer Comparison
Compare growth, multiples, and margins vs sector.
CMI — Frequently Asked Questions
Quick answers to the most common questions about buying CMI stock.
What is CMI's P/E ratio?
Cummins Inc. (CMI) trailing twelve-month P/E ratio is 35.0x, based on TTM diluted EPS of $19.26. The 5-year average P/E is 18.7x and the historical range spans 11.6x to 46.9x.
Is CMI stock overvalued or undervalued?
CMI trades at 35.0x P/E, above its 5-year average of 18.7x. The 95th percentile ranking within the 11.6x–46.9x historical range indicates a premium to historical valuation.
Is CMI stock expensive?
Yes, CMI is expensive relative to its own history. The current P/E of 35.0x is above the 5-year average of 18.7x and also above the Industrials sector median of 25.6x. The stock sits at the 95th percentile of its 5-year valuation range.
What is CMI's historical P/E range?
Over the past 5 years, CMI's P/E ratio has ranged from 11.6x to 46.9x, with a median of 15.6x and an average of 18.7x. The current P/E of 35.0x places the stock at the 95th percentile of this range. Full historical data spans 1992–2026.
How does CMI's P/E compare to the S&P 500?
CMI trades at 35.0x P/E versus the S&P 500 median of 24.4x. The 43% premium to the market typically reflects higher expected earnings growth or quality.
How does CMI's valuation compare to Industrials peers?
Cummins Inc. P/E of 35.0x compares to the Industrials sector median of 25.6x. The premium reflects expected growth above peers or stronger fundamentals. See the peer comparison table on this page for ticker-by-ticker P/E and PEG.
What is CMI's PEG ratio?
CMI PEG ratio is 3.10, based on a P/E of 35.0x and EPS growth of -27.7%. A PEG above 2.0 indicates a premium valuation relative to earnings growth — typically considered expensive.
What is CMI's earnings yield?
CMI earnings yield is 2.86%, the inverse of its 35.0x P/E ratio. Earnings yield represents the percentage of each dollar invested that the company earns. It can be compared directly to bond yields to assess relative attractiveness of stocks versus fixed income.