Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Cummins India (NSE:CUMMINSIND) Forward PE Ratio Explanation
The Forward PE Ratio of a company is often used to compare current earnings to estimated future earnings, as well as gaining a clearer picture of what earnings will look like without charges and other accounting adjustments. If earnings are expected to grow in the future, the Forward PE Ratio will be lower than the current PE Ratio. This measure is also used to compare one company to another with a forward-looking focus.
Trailing PE Ratio relies on what is already done. It uses the current share price and divides by the total EPS (Basic) over the past 12 months. PE Ratio can be affected by Non Operating Income such as the sale of part of businesses. This may increase for the current year or quarter dramatically. But it cannot be repeated over and over. Therefore PE Ratio without NRI is a more accurate indication of valuation than PE Ratio .
Cummins India Forward PE Ratio Related Terms
Cummins India Forward PE Ratio Historical Data
* Premium members only.
The historical data trend for Cummins India's Forward 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.
Cummins India Forward PE Ratio Chart
Cummins India Annual Data
Trend
2017-03
2018-03
2019-03
2020-03
2021-03
2022-03
2023-03
2025-03
2026-03
Forward PE Ratio
28.41
23.58
22.62
13.07
29.85
29.33
34.01
38.48
46.97
Cummins India Quarterly Data
2017-03
2018-03
2018-06
2018-09
2018-12
2019-03
2019-06
2019-09
2019-12
2020-03
2020-06
2020-09
2020-12
2021-03
2021-06
2021-09
2021-12
2022-03
2022-06
2022-09
2022-12
2023-03
2023-06
2023-09
2023-12
2024-12
2025-03
2025-06
2025-09
2025-12
2026-03
2026-06
Forward PE Ratio
28.41
23.58
22.73
25.32
27.10
22.62
23.26
22.27
18.66
13.07
18.69
27.47
23.87
29.85
29.41
36.36
26.74
29.33
29.41
34.97
30.67
34.01
39.37
34.48
35.34
41.50
38.48
41.69
48.09
44.38
46.97
57.37
NSE:CUMMINSIND vs GEV, ETN, PH: Forward PE Ratio Comparison
For the Specialty Industrial Machinery subindustry, Cummins India's Forward PE Ratio, along with its competitors' market caps and Forward 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 India Forward PE Ratio vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Cummins India's Forward PE Ratio distribution charts can be found below:
* The bar in red indicates where Cummins India's Forward PE Ratio falls into.
It's a measure of the price-to-earnings ratio (PE Ratio) using forecasted earnings for the calculation. While the earnings used are just an estimate and are not as reliable as current earnings data, there is still benefit in estimated P/E analysis. The forecasted earnings used in the formula can either be for the next 12 months or for the next full-year fiscal period.
Cummins India (NSE:CUMMINSIND) has a Forward PE Ratio of 52.76 as of Sep. 07, 2026. Forward P/E ratio is the share price dividend by the expected per-share earnings in the next 12 months. View historical data on Cummins India and its competitors. According to the industry distribution chart, Cummins India ranks #1195 out of 1301 companies in the Industrial Products industry, placing it in the top 91.9%.
Is Cummins India's Forward PE Ratio too high?
Cummins India's current Forward PE Ratio is 52.76. The Industrial Products industry median Forward PE Ratio is 17.08. Cummins India's value of 52.76 is 208.9% above this industry median. Based on the distribution chart, Cummins India ranks #1195 out of 1301 companies in the Industrial Products industry, which is in the bottom quartile relative to peers. Overall, Cummins India has a GF Score™ of 93/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Cummins India's Forward PE Ratio compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Cummins India ranks #1195 out of 1301 companies for Forward PE Ratio. This places Cummins India in the lower half of its industry. The industry median Forward PE Ratio is 17.08. Cummins India's value of 52.76 is 208.9% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Forward PE Ratio for an Industrial Products company?
The median Forward PE Ratio among Industrial Products companies is 17.08, based on 1,301 companies in the industry. Companies in the top quartile (top 25%) have a Forward PE Ratio significantly above this median, while those in the bottom quartile fall well below. However, Forward PE Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Cummins India's current Forward PE Ratio of 52.76 is 208.9% 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 Forward PE Ratio mean?
A high Forward PE Ratio can signal that a stock is expensive relative to its fundamentals. Forward P/E ratio is the share price dividend by the expected per-share earnings in the next 12 months. View historical data on Cummins India and its competitors. For the Industrial Products industry, the median Forward PE Ratio is 17.08 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cummins India's current Forward PE Ratio is 52.76. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cummins India stock overvalued right now?
Based on GuruFocus' analysis, Cummins India (NSE:CUMMINSIND) is currently considered Fairly Valued. The stock's GF Value™ is ₹4,702.12, compared to a current price of ₹5,035.00 — trading 7.1% above its estimated fair value. The current Forward PE Ratio is 52.76 and 208.9% above the Industrial Products industry median of 17.08. Cummins India's overall GF Score™ is 93/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Forward PE Ratio calculated?
Forward PE Ratio is calculated from a company's financial statements. For Cummins India (NSE:CUMMINSIND), the current Forward PE Ratio is 52.76 as of Sep. 07, 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 India (NSE:CUMMINSIND) Overvalued in 2026?
Based on GuruFocus' analysis, Cummins India stock appears to be overvalued.
The current stock price of ₹5,035.00 is trading 7.1% above its estimated GF Value™ of ₹4,702.12.
GuruFocus considers Cummins India to be Fairly Valued.
Key valuation signals for NSE:CUMMINSIND:
Forward PE Ratio: 52.76
GF Value™: ₹4,702.12 vs. price of ₹5,035.00 (7.1% above fair value)
Industry Position: 208.9% above the Industrial Products median (#1195 of 1301)
No single metric tells the full story. See the NSE:CUMMINSIND stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Cummins India Ltd designs and manufactures service engines and engages in allied activities. The company produces fuel systems, air handling, filtration, emission solutions, and electrical power generation systems in facilities across India. The company's business units are; Engines, Power Systems, Components, and Distribution. Its operating segments are; Engines and Lubes. Maximum revenue is generated from its Engines segment which manufactures engines from 60 HP for low, medium, and heavy-duty on-highway commercial vehicle markets and off-highway commercial equipment industry spanning construction and compressor.
93GF Score
Get the complete analysis for NSE:CUMMINSIND
Forward PE Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
NSE:CUMMINSIND has been successfully added to your 
