Cummins (MEX:CMI) EV-to-EBIT: 20.74 (As of Aug. 18, 2026) — 66% Above Median

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MEX:CMI Cummins Inc MEX:CMI
68 GF Score
Price MXN10,740.99
GF Value MXN5,887.98
Valuation Significantly Overvalued
! 3 Warning Signs
View Full Analysis

What is Cummins EV-to-EBIT?

Cummins MEX:CMI 68 EV-to-EBIT is 20.74 as of Aug. 18, 2026, which is 66% above its 10-year median of 12.48. GuruFocus rates MEX:CMI with a GF Score™ of 68/100 and a GF Value™ of MXN5,887.98 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 2,375 Industrial Products companies, Cummins ranks worse than 54.57% on this metric.

EV-to-EBIT is calculated as Enterprise Value divided by its EBIT. As of today, Cummins's Enterprise Value is MXN1,548,303 Mil. Cummins's EBIT for the trailing twelve months (TTM) ended in Jun. 2026 was MXN74,638 Mil. Therefore, Cummins's EV-to-EBIT for today is 20.74.

The historical rank and industry rank for Cummins's EV-to-EBIT or its related term are showing as below:

MEX:CMI' s EV-to-EBIT Range Over the Past 10 Years
Min: 6.82   Med: 12.48   Max: 25.7
Current: 21.81

During the past 13 years, the highest EV-to-EBIT of Cummins was 25.70. The lowest was 6.82. And the median was 12.48.

MEX:CMI's EV-to-EBIT is ranked worse than
54.57% of 2375 companies
in the Industrial Products industry
Industry Median: 19.98 vs MEX:CMI: 21.81

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt) %. Cummins's Enterprise Value for the quarter that ended in Jun. 2026 was MXN1,780,975 Mil. Cummins's EBIT for the trailing twelve months (TTM) ended in Jun. 2026 was MXN74,638 Mil. Cummins's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Jun. 2026 was 4.19%.


Cummins  (MEX:CMI) EV-to-EBIT Explanation

This is a more accurate valuation of companies' operation because it considers the debt and cash on its balance sheet, and non-operating items such as interest payment, tax, and one-time items are not included in the Operating Income.

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt) %.

Cummins's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Jun. 2026 is calculated as:

Earnings Yield (Joel Greenblatt) % (Q: Jun. 2026 ) =EBIT / Enterprise Value (Q: Jun. 2026 )
=74637.735/1780975.029
=4.19 %

Cummins's Enterprise Value for the quarter that ended in Jun. 2026 was MXN1,780,975 Mil.
Cummins's EBIT for the trailing twelve months (TTM) ended in Jun. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was MXN74,638 Mil.

* 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 EV-to-EBIT Related Terms


Cummins EV-to-EBIT Historical Data

* Premium members only.

The historical data trend for Cummins's EV-to-EBIT 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.

Cummins EV-to-EBIT Chart

Cummins Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
EV-to-EBIT
Get a 7-Day Free Trial Premium Member Only Premium Member Only 11.80 13.67 19.74 10.29 17.72

Cummins Quarterly Data
Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26 Jun26
EV-to-EBIT 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 11.82 15.43 17.72 19.55 24.85

MEX:CMI vs EMR, ITW, PH: EV-to-EBIT Comparison

For the Specialty Industrial Machinery subindustry, Cummins's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT 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 EV-to-EBIT vs Industrial Products Industry

For the Industrial Products industry and Industrials sector, Cummins's EV-to-EBIT distribution charts can be found below:

* The bar in red indicates where Cummins's EV-to-EBIT falls into.


MEX:CMI
68GF Score
Cummins Inc MEX:CMI
EV-to-EBIT is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Cummins EV-to-EBIT Calculation

Cummins's EV-to-EBIT for today is calculated as:

EV-to-EBIT=Enterprise Value (Today)/EBIT (TTM)
=1548302.976/74637.735
=20.74

Cummins's current Enterprise Value is MXN1,548,303 Mil.
Cummins's EBIT for the trailing twelve months (TTM) ended in Jun. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was MXN74,638 Mil.

* 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.

Frequently Asked Questions Learn more about EV-to-EBIT →
What does a EV-to-EBIT of 20.74 mean?
Cummins (MEX:CMI) has a EV-to-EBIT of 20.74 as of Aug. 18, 2026. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on Cummins and its competitors. This is 66% above median its historical median of 12.48. Over the past decade, Cummins' EV-to-EBIT has ranged from 6.82 to 25.70. According to the industry distribution chart, Cummins ranks #1296 out of 2375 companies in the Industrial Products industry, placing it in the top 54.6%.
Is Cummins' EV-to-EBIT too high?
Cummins' current EV-to-EBIT of 20.74 is 66% above median its 10-year median of 12.48. Over the past 10 years, this metric has ranged from a low of 6.82 to a high of 25.70. The Industrial Products industry median EV-to-EBIT is 19.98. Cummins' value of 20.74 is 3.8% above this industry median. Based on the distribution chart, Cummins ranks #1296 out of 2375 companies in the Industrial Products industry, which is below the industry midpoint. Overall, Cummins has a GF Score™ of 68/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Cummins' EV-to-EBIT compare to EMR and ITW?
According to the Industrial Products industry distribution chart, Cummins ranks #1296 out of 2375 companies for EV-to-EBIT. This places Cummins in the lower half of its industry. The industry median EV-to-EBIT is 19.98. Cummins' value of 20.74 is 3.8% above this benchmark. Historically, Cummins' own EV-to-EBIT has ranged from 6.82 to 25.70 over the past decade. While the company's 10-year median is 12.48 vs. the industry median of 19.98, Cummins has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EV-to-EBIT for an Industrial Products company?
The median EV-to-EBIT among Industrial Products companies is 19.98, based on 2,375 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-EBIT significantly above this median, while those in the bottom quartile fall well below. However, EV-to-EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Cummins's current EV-to-EBIT of 20.74 is 3.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EV-to-EBIT mean?
A high EV-to-EBIT can signal that a stock is expensive relative to its fundamentals. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on Cummins and its competitors. For the Industrial Products industry, the median EV-to-EBIT is 19.98 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cummins's current EV-to-EBIT is 20.74, which is 66% above median its own 10-year median of 12.48. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cummins stock overvalued right now?
Based on GuruFocus' analysis, Cummins (MEX:CMI) is currently considered Significantly Overvalued. The stock's GF Value™ is MXN5,887.98, compared to a current price of MXN10,740.99 — trading 82.4% above its estimated fair value. The current EV-to-EBIT is 20.74, which is 66% above median its 10-year median of 12.48 and 3.8% above the Industrial Products industry median of 19.98. Cummins' overall GF Score™ is 68/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EV-to-EBIT calculated?
EV-to-EBIT is calculated from a company's financial statements. For Cummins (MEX:CMI), the current EV-to-EBIT is 20.74 as of Aug. 18, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Cummins (MEX:CMI) Overvalued in 2026?

Based on GuruFocus' analysis, Cummins stock appears to be overvalued. The current stock price of MXN10,740.99 is trading 82.4% above its estimated GF Value™ of MXN5,887.98. GuruFocus considers Cummins to be Significantly Overvalued.

Key valuation signals for MEX:CMI:

  • EV-to-EBIT: 20.74 (66% above median its 10-year median of 12.48)
  • GF Value™: MXN5,887.98 vs. price of MXN10,740.99 (82.4% above fair value)
  • GF Score™: 68/100 with 3 warning signs
  • Industry Position: 3.8% above the Industrial Products median (#1296 of 2375)

No single metric tells the full story. See the MEX:CMI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Cummins Business Description

Address 500 Jackson Street, Box 3005, Columbus, IN, USA, 47202-3005
Cummins is a leading manufacturer of diesel and other engines used in heavy- and medium-duty commercial trucks, off-highway equipment, and locomotives, in addition to prime power and standby generators. The company also sells powertrain components, which include filtration products, transmissions, turbochargers, aftertreatment systems, and fuel systems. Sales are approximately 60% US and Canada and 40% rest of the world. Much of Cummins' foreign sales (China, India, and so forth) are through joint ventures. The company operates 650 distributors and over 19,000 dealer locations across 190 countries. Cummins' business model is unique as it competes with many of its heavy-duty truck manufacturer customers, which also make their own engines.
68GF Score

Get the complete analysis for MEX:CMI

EV-to-EBIT is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

MXN10,740.99
Price
MXN5,887.98
GF Value