Cummins Intrinsic Value
CUMMINSIND Valuation Methods Summary
| Method | Type | Intrinsic Value | Range | Upside/Downside | Details |
|---|---|---|---|---|---|
| P/E Based Valuation | earnings | ₹1235.01 | ₹988.01 - ₹1482.01 | -70.0% | EPS: ₹89.80, Sector P/E: 12x |
| Book Value Method | asset | ₹1374.73 | ₹1237.26 - ₹1512.20 | -66.6% | Book Value/Share: ₹1374.73, P/B: 1.0x |
| Revenue Multiple Method | revenue | ₹1921.75 | ₹1729.58 - ₹2113.93 | -53.3% | Revenue/Share: ₹2402.18, P/S: 0.8x |
| EBITDA Multiple Method | earnings | ₹3608.73 | ₹3247.86 - ₹3969.60 | -12.3% | EBITDA: ₹3308.00Cr, EV/EBITDA: 6x |
| Simple DCF (5Y) | dcf | ₹4161.44 | ₹3329.15 - ₹4993.73 | +1.1% | CF Growth: 15.0%, Discount: 15% |
| PEG Ratio Method | growth | ₹1235.01 | ₹1111.51 - ₹1358.51 | -70.0% | EPS Growth: 8.0%, Fair P/E: 6.4x |
| Growth Adjusted P/E | growth | ₹1235.01 | ₹1111.51 - ₹1358.51 | -70.0% | Revenue Growth: 6.0%, Adj P/E: 8.2x |
| ROE Based Valuation | profitability | ₹7237.82 | ₹6514.04 - ₹7961.60 | +75.8% | ROE: 32.9%, P/E Multiple: 16x |
| Graham Defensive Method | conservative | ₹1666.62 | ₹1499.96 - ₹1833.28 | -59.5% | EPS: ₹89.80, BVPS: ₹1374.73 |
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Valuation Comparison Chart
CUMMINSIND Intrinsic Value Analysis
What is the intrinsic value of CUMMINSIND?
Based on our comprehensive analysis using 9 different valuation methods, the estimated intrinsic value of Cummins (CUMMINSIND) is ₹1666.62 (median value). With the current market price of ₹4116.70, this represents a -59.5% variance from our estimated fair value.
The valuation range spans from ₹1235.01 to ₹7237.82, indicating ₹1235.01 - ₹7237.82.
Is CUMMINSIND undervalued or overvalued?
Based on our multi-method analysis, Cummins (CUMMINSIND) appears to be trading above calculated value by approximately 59.5%.
Financial Health Analysis
| Financial Metric | Current Value | Industry Benchmark | Assessment | Impact on Valuation |
|---|---|---|---|---|
| Current Ratio | 20.08 | Industry Standard: 2.0+ | Above 2.0 | Measures short-term liquidity capacity |
| Debt to Equity Ratio | 1.34 | Industry Standard: <0.5 | Above 1.0 | Indicates financial leverage level |
| Return on Equity | 32.9% | Industry Standard: 15%+ | Above 15% | Measures shareholder return efficiency |
| Operating Margin | 21.0% | Industry Standard: 20%+ | Above 20% | Indicates operational efficiency level |
| Asset Turnover Ratio | 1.30x | Industry Standard: 1.0x+ | Above 1.0x | Measures asset utilization efficiency |
Related Pages for Cummins
Additional stock information and data for CUMMINSIND
Cash Flow Quality Analysis
| Period | Operating Cash Flow | Free Cash Flow | Cash Flow Quality | Sustainability Score |
|---|---|---|---|---|
| March 2025 | ₹1,685 Cr | ₹1,395 Cr | Positive Free Cash Flow | 8/10 |
| March 2024 | ₹1,285 Cr | ₹1,161 Cr | Positive Free Cash Flow | 8/10 |
| March 2023 | ₹820 Cr | ₹820 Cr | Positive Free Cash Flow | 8/10 |
| March 2022 | ₹712 Cr | ₹425 Cr | Positive Free Cash Flow | 8/10 |
| March 2021 | ₹789 Cr | ₹789 Cr | Positive Free Cash Flow | 8/10 |