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CumminsCMI +2.23%90 EV-to-OCF is 17.69 as of Sep. 04, 2026, which is 24% above its 10-year median of 14.27. GuruFocus rates CMI with a GF Score™ of 90/100 and a GF Value™ of $354.06 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 3,087 Industrial Products companies, Cummins ranks worse than 61% on this metric.
EV-to-OCF is calculated as enterprise value divided by its cash flow from operations. As of today, Cummins's Enterprise Value is $82,191 Mil.
Cummins's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2026 was $4,647 Mil. Therefore, Cummins's EV-to-OCF for today is 17.69.
The historical rank and industry rank for Cummins's EV-to-OCF or its related term are showing as below:
CMI'
s EV-to-OCF Range Over the Past 10 Years
Min: 6.31 Med: 14.27 Max: 44.03
Current: 17.69
During the past 13 years, the highest EV-to-OCF of Cummins was 44.03. The lowest was 6.31. And the median was 14.27.
CMI's EV-to-OCF is ranked worse than 61% of 3087
companies
in the Industrial Products industry
Industry Median: 11.12
vs CMI: 17.69
EV-to-OCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.
As of today (2026-09-04), Cummins's stock price is $557.6625.
Cummins's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Jun. 2026 was $19.570. Therefore, Cummins's PE Ratio (TTM) for today is 28.50.
EV-to-OCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.
Cummins's share price for today is $557.6625.
Cummins's Earnings per Share (Diluted) 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 $19.570.
* 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.
Enterprise Value is used because it is a more complete measure in reflecting how much an investor pays when buying a company. Cash Flow from Operations is an important financial metric because it represents the cash generated from operating activities at a company's disposal. Companies with a low EV-to-OCF ratio, combined with a strong balance sheet are generally considered as undervalued.
Cummins EV-to-OCF Related Terms
Cummins EV-to-OCF Historical Data
* Premium members only.
The historical data trend for Cummins's EV-to-OCF 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.
For the Specialty Industrial Machinery subindustry, Cummins's EV-to-OCF, along with its competitors' market caps and EV-to-OCF 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-OCF vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Cummins's EV-to-OCF distribution charts can be found below:
* The bar in red indicates where Cummins's EV-to-OCF falls into.
Cummins's current Enterprise Value is $82,191 Mil.
Cummins's Cash Flow from Operations 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 $4,647 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 (CMI) has a EV-to-OCF of 17.69 as of Sep. 04, 2026. This is 24% above median its historical median of 14.27. Over the past decade, Cummins' EV-to-OCF has ranged from 6.31 to 44.03. According to the industry distribution chart, Cummins ranks #1883 out of 3087 companies in the Industrial Products industry, placing it in the top 61%.
Is Cummins' EV-to-OCF too high?
Cummins' current EV-to-OCF of 17.69 is 24% above median its 10-year median of 14.27. Over the past 10 years, this metric has ranged from a low of 6.31 to a high of 44.03. The Industrial Products industry median EV-to-OCF is 11.12. Cummins' value of 17.69 is 59.1% above this industry median. Based on the distribution chart, Cummins ranks #1883 out of 3087 companies in the Industrial Products industry, which is below the industry midpoint. Overall, Cummins has a GF Score™ of 90/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Cummins' EV-to-OCF compare to ITW and EMR?
According to the Industrial Products industry distribution chart, Cummins ranks #1883 out of 3087 companies for EV-to-OCF. This places Cummins in the lower half of its industry. The industry median EV-to-OCF is 11.12. Cummins' value of 17.69 is 59.1% above this benchmark. Historically, Cummins' own EV-to-OCF has ranged from 6.31 to 44.03 over the past decade. While the company's 10-year median is 14.27 vs. the industry median of 11.12, 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-OCF for an Industrial Products company?
The median EV-to-OCF among Industrial Products companies is 11.12, based on 3,087 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-OCF significantly above this median, while those in the bottom quartile fall well below. However, EV-to-OCF should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Cummins's current EV-to-OCF of 17.69 is 59.1% 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-OCF mean?
A high EV-to-OCF can signal that a stock is expensive relative to its fundamentals. For the Industrial Products industry, the median EV-to-OCF is 11.12 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cummins's current EV-to-OCF is 17.69, which is 24% above median its own 10-year median of 14.27. 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 (CMI) is currently considered Significantly Overvalued. The stock's GF Value™ is $354.06, compared to a current price of $557.66 — trading 57.5% above its estimated fair value. The current EV-to-OCF is 17.69, which is 24% above median its 10-year median of 14.27 and 59.1% above the Industrial Products industry median of 11.12. Cummins' overall GF Score™ is 90/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EV-to-OCF calculated?
EV-to-OCF is calculated from a company's financial statements. For Cummins (CMI), the current EV-to-OCF is 17.69 as of Sep. 04, 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 (CMI) Overvalued in 2026?
Based on GuruFocus' analysis, Cummins stock appears to be overvalued.
The current stock price of $557.66 is trading 57.5% above its estimated GF Value™ of $354.06.
GuruFocus considers Cummins to be Significantly Overvalued.
Key valuation signals for CMI:
EV-to-OCF: 17.69 (24% above median its 10-year median of 14.27)
GF Value™: $354.06 vs. price of $557.66 (57.5% above fair value)
Industry Position: 59.1% above the Industrial Products median (#1883 of 3087)
No single metric tells the full story. See the CMI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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.
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