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Cummins Shiller PE Ratio

: 18.43 (As of Today)
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As of today (2022-08-11), Cummins's current share price is $223.88. Cummins's E10 for the quarter that ended in Jun. 2022 was $12.15. Cummins's Shiller PE Ratio for today is 18.43.

The historical rank and industry rank for Cummins's Shiller PE Ratio or its related term are showing as below:

CMI' s Shiller PE Ratio Range Over the Past 10 Years
Min: 11.68   Med: 21.33   Max: 34.19
Current: 18.45

During the past years, Cummins's highest Shiller PE Ratio was 34.19. The lowest was 11.68. And the median was 21.33.

CMI's Shiller PE Ratio is ranked better than
60.86% of 1584 companies
in the Industrial Products industry
Industry Median: 23.48 vs CMI: 18.45

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years.

Cummins's adjusted earnings per share data for the three months ended in Jun. 2022 was $4.940. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $12.15 for the trailing ten years ended in Jun. 2022.

Shiller PE for Stocks: The True Measure of Stock Valuation


Cummins Shiller PE Ratio Historical Data

The historical data trend for Cummins's Shiller PE Ratio can be seen below:

* 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.

* Premium members only.

Cummins Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Shiller PE Ratio
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 24.26 16.12 18.50 21.89 19.09

Cummins Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Shiller PE Ratio Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 21.92 19.84 19.09 17.42 15.93

Competitive Comparison

For the Specialty Industrial Machinery subindustry, Cummins's Shiller PE Ratio, along with its competitors' market caps and Shiller PE Ratio data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Cummins Shiller PE Ratio Distribution

For the Industrial Products industry and Industrials sector, Cummins's Shiller PE Ratio distribution charts can be found below:

* The bar in red indicates where Cummins's Shiller PE Ratio falls into.



Cummins Shiller PE Ratio Calculation

For Shiller PE Ratio, the earnings of the past 10 years are inflation-adjusted and averaged. The result is used for P/E calculation. Since it looks at the average over the last 10 years, the Shiller PE Ratio is also called PE10.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The same calculation is applied here to individual companies.

Cummins's Shiller PE Ratio for today is calculated as

Shiller PE Ratio=Share Price/ E10
=223.88/12.15
=18.43

* 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's E10 for the quarter that ended in Jun. 2022 is calculated as:

For example, Cummins's adjusted earnings per share data for the three months ended in Jun. 2022 was:

Adj_EPS=Earnings per Share (Diluted)/CPI of Jun. 2022 (Change)*Current CPI (Jun. 2022)
=4.94/123.3228*123.3228
=4.940

Current CPI (Jun. 2022) = 123.3228.

Cummins Quarterly Data

Earnings per Share (Diluted) CPI Adj_EPS
201209 1.860 97.633 2.349
201212 1.950 96.871 2.482
201303 1.490 98.209 1.871
201306 2.200 98.518 2.754
201309 1.900 98.790 2.372
201312 2.310 98.326 2.897
201403 1.830 99.695 2.264
201406 2.430 100.560 2.980
201409 2.320 100.428 2.849
201412 2.440 99.070 3.037
201503 2.140 99.621 2.649
201506 2.620 100.684 3.209
201509 2.140 100.392 2.629
201512 0.920 99.792 1.137
201603 1.870 100.470 2.295
201606 2.400 101.688 2.911
201609 1.720 101.861 2.082
201612 2.250 101.863 2.724
201703 2.360 102.862 2.829
201706 2.530 103.349 3.019
201709 2.710 104.136 3.209
201712 -1.660 104.011 -1.968
201803 1.960 105.290 2.296
201806 3.320 106.317 3.851
201809 4.280 106.507 4.956
201812 3.620 105.998 4.212
201903 4.200 107.251 4.829
201906 4.270 108.070 4.873
201909 3.970 108.329 4.519
201912 1.970 108.420 2.241
202003 3.410 108.902 3.862
202006 1.860 108.767 2.109
202009 3.360 109.815 3.773
202012 3.360 109.897 3.770
202103 4.070 111.754 4.491
202106 4.100 114.631 4.411
202109 3.690 115.734 3.932
202112 2.750 117.630 2.883
202203 2.920 121.301 2.969
202206 4.940 123.323 4.940

Add all the adjusted EPS together and divide 10 will get our E10.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.


Cummins  (NYSE:CMI) Shiller PE Ratio Explanation

Compared with the regular PE Ratio, which works poorly for cyclical businesses, the Shiller PE Ratio smoothed out the fluctuations of profit margins during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Shiller PE Ratio should give similar results to regular PE Ratio.

Compared with the PS Ratio, the Shiller PE Ratio makes the comparison between different industries more meaningful.


Be Aware

Shiller PE Ratio assumes that over the long term, businesses and profitability revert to their means. If a company's business model does not work in the future compared with the past, Shiller PE Ratio and PS Ratio will give false valuations.


Cummins Shiller PE Ratio Related Terms

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


Cummins Business Description

Cummins logo
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 filtration products, 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 diesel emissions, Cummins has maintained its leadership position in the industry.
Executives
Peters Luther E officer: VP - Corporate Controller 500 JACKSON STREET COLUMBUS IN 47201
Fetch Bonnie J officer: VP - Supply Chain 500 JACKSON STREET COLUMBUS IN 47201
Wiltrout Jeffrey T officer: VP - Corporate Strategy 500 JACKSON STREET COLUMBUS IN 47201
Harris Carla A director 702 SW 8TH STREET BENTONVILLE AR 72716
Lamb-hale Nicole officer: VP - General Counsel 909 ROSE AVENUE SUITE 200 NORTH BETHESDA MD 20852
Newsome Earl officer: VP - Chief Information Officer 505 HUNTMAR PARK DR SUITE 300 HERNDON VA 20170
Brockhaus John D officer: VP-Human Resources Operations 500 JACKSON STREET COLUMBUS IN 47201
Narang Mahesh officer: VP & President - Components 500 JACKSON STREET COLUMBUS IN 47201
Chandler Mary T officer: VP - Corp. Resp. & Comm. Rel. 500 JACKSON STREET COLUMBUS IN 47201
Nelson Kimberly A director ONE GENERAL MILLS BLVD MINNEAPOLIS MN 55426
Davis Amy Rochelle officer: VP & Pres. - New Power Segment 500 JACKSON STREET COLUMBUS IN 47201
Stoner Nathan R officer: VP - China Area Business Org 500 JACKSON STREET COLUMBUS IN 47201
Kennedy Melina M officer: VP-Product Compl.-Reg. Affairs 301 EAST MARKET STREET INDIANAPOLIS IN 46204
Fier Walter J officer: VP - Chief Technical Officer 500 CENTRAL AVENUE COLUMBUS IN 47201
Quintos Karen H director ONE DELL WAY ROUND ROCK TX 78682

Cummins Headlines

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