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Cummins (BSP:C1MI34) Cyclically Adjusted PS Ratio : 1.81 (As of Apr. 29, 2024)


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What is Cummins Cyclically Adjusted PS Ratio?

As of today (2024-04-29), Cummins's current share price is R$372.02. Cummins's Cyclically Adjusted Revenue per Share for the quarter that ended in Dec. 2023 was R$205.26. Cummins's Cyclically Adjusted PS Ratio for today is 1.81.

The historical rank and industry rank for Cummins's Cyclically Adjusted PS Ratio or its related term are showing as below:

BSP:C1MI34' s Cyclically Adjusted PS Ratio Range Over the Past 10 Years
Min: 0.99   Med: 1.58   Max: 2.23
Current: 1.71

During the past years, Cummins's highest Cyclically Adjusted PS Ratio was 2.23. The lowest was 0.99. And the median was 1.58.

BSP:C1MI34's Cyclically Adjusted PS Ratio is ranked worse than
56.73% of 2156 companies
in the Industrial Products industry
Industry Median: 1.43 vs BSP:C1MI34: 1.71

The Shiller PE Ratio was first used by professor Robert Shiller. He uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings per share of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PS Ratio. The Cyclically Adjusted Revenue per Share is the average of the inflation adjusted revenue per share of a company over the past 10 years.

Cummins's adjusted revenue per share data for the three months ended in Dec. 2023 was R$73.180. Add all the adjusted revenue per share for the past 10 years together and divide 10 will get our Cyclically Adjusted Revenue per Share, which is R$205.26 for the trailing ten years ended in Dec. 2023.

Shiller PE for Stocks: The True Measure of Stock Valuation


Cummins Cyclically Adjusted PS Ratio Historical Data

The historical data trend for Cummins's Cyclically Adjusted PS 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 Cyclically Adjusted PS Ratio Chart

Cummins Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Cyclically Adjusted PS Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.55 1.85 1.60 1.58 1.40

Cummins Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Cyclically Adjusted PS Ratio Get a 7-Day Free Trial 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 1.58 1.50 1.49 1.36 1.40

Competitive Comparison of Cummins's Cyclically Adjusted PS Ratio

For the Specialty Industrial Machinery subindustry, Cummins's Cyclically Adjusted PS Ratio, along with its competitors' market caps and Cyclically Adjusted PS 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's Cyclically Adjusted PS Ratio Distribution in the Industrial Products Industry

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

* The bar in red indicates where Cummins's Cyclically Adjusted PS Ratio falls into.



Cummins Cyclically Adjusted PS Ratio Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted PS Ratio takes the Revenue per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/S calculation. Because it considers this 10-year average, it's often referred to as the CAPS Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PS Ratio.

Cummins's Cyclically Adjusted PS Ratio for today is calculated as

Cyclically Adjusted PS Ratio=Share Price/ Cyclically Adjusted Revenue per Share
=372.02/205.26
=1.81

* 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 Cyclically Adjusted Revenue per Share for the quarter that ended in Dec. 2023 is calculated as:

For example, Cummins's adjusted Revenue per Share data for the three months ended in Dec. 2023 was:

Adj_RevenuePerShare=Revenue per Share/CPI of Dec. 2023 (Change)*Current CPI (Dec. 2023)
=73.18/129.4194*129.4194
=73.180

Current CPI (Dec. 2023) = 129.4194.

Cummins Quarterly Data

Revenue per Share CPI Adj_RevenuePerShare
201403 13.866 99.695 18.000
201406 14.753 100.560 18.987
201409 15.644 100.428 20.160
201412 18.490 99.070 24.154
201503 20.432 99.621 26.544
201506 21.722 100.684 27.922
201509 25.413 100.392 32.761
201512 26.313 99.792 34.125
201603 23.064 100.470 29.710
201606 22.931 101.688 29.184
201609 20.245 101.861 25.722
201612 22.442 101.863 28.513
201703 21.357 102.862 26.871
201706 24.932 103.349 31.221
201709 24.783 104.136 30.800
201712 27.109 104.011 33.731
201803 27.556 105.290 33.871
201806 35.185 106.317 42.831
201809 37.729 106.507 45.846
201812 37.288 105.998 45.527
201903 36.556 107.251 44.112
201906 37.953 108.070 45.451
201909 37.933 108.329 45.318
201912 37.607 108.420 44.891
202003 40.890 108.902 48.594
202006 33.760 108.767 40.170
202009 46.402 109.815 54.686
202012 50.224 109.897 59.146
202103 57.871 111.754 67.019
202106 52.439 114.631 59.204
202109 54.432 115.734 60.868
202112 57.393 117.630 63.145
202203 55.511 121.301 59.226
202206 58.528 125.017 60.589
202209 67.696 125.227 69.963
202212 71.604 125.222 74.004
202303 77.297 127.348 78.554
202306 73.555 128.729 73.950
202309 72.896 129.860 72.649
202312 73.180 129.419 73.180

Add all the adjusted revenue per share together and divide 10 will get our Cyclically Adjusted Revenue per Share.

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  (BSP:C1MI34) Cyclically Adjusted PS Ratio Explanation

Compared with the regular PS Ratio, which works poorly for cyclical businesses, the Cyclically Adjusted PS Ratio smoothed out the fluctuations of revenue during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Cyclically Adjusted PS Ratio should give similar results to regular PS Ratio.


Cummins Cyclically Adjusted PS Ratio Related Terms

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


Cummins (BSP:C1MI34) 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.

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