Cummins (XTER:CUM) Margin of Safety % (DCF Earnings Based): -158.48% (As of Jun. 26, 2026)


XTER:CUM Cummins Inc XTER:CUM
84 GF Score
Price €581.60
GF Value €260.37
Valuation Significantly Overvalued
! 9 Warning Signs
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What is Cummins Margin of Safety % (DCF Earnings Based)?

Cummins XTER:CUM 84 Margin of Safety % (DCF Earnings Based) is -158.48% as of Jun. 26, 2026. GuruFocus rates XTER:CUM with a GF Score™ of 84/100 and a GF Value™ of €260.37 (Significantly Overvalued). The stock has 9 warning signs investors should review.

Margin of Safety % (DCF Earnings Based) = (Intrinsic Value: DCF (Earnings Based) - Current Price) / Intrinsic Value: DCF (Earnings Based).

Note: Discounted Earnings model is only suitable for predictable companies (Business Predictability Rank higher than 1-Star). If the company's Predictability Rank is 1-Star or Not Rated, result may not be accurate due to the low predictability of business and the data will not be stored into our database.

As of today (2026-06-26), Cummins's Predictability Rank is 4-Stars. Cummins's intrinsic value calculated from the Discounted Earnings model is €225.01 and current share price is €581.60. Consequently,

Cummins's Margin of Safety % (DCF Earnings Based) using Discounted Earnings model is -158.48%.

XTER:CUM vs EMR, PH, ITW: Margin of Safety % (DCF Earnings Based) Comparison

For the Specialty Industrial Machinery subindustry, Cummins's Margin of Safety % (DCF Earnings Based), along with its competitors' market caps and Margin of Safety % (DCF Earnings Based) 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 Margin of Safety % (DCF Earnings Based) vs Industrial Products Industry

For the Industrial Products industry and Industrials sector, Cummins's Margin of Safety % (DCF Earnings Based) distribution charts can be found below:

* The bar in red indicates where Cummins's Margin of Safety % (DCF Earnings Based) falls into.


XTER:CUM
84GF Score
Cummins Inc XTER:CUM
Margin of Safety % (DCF Earnings Based) is just one metric. See GF Score™, valuation, warning signs, and more.
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Cummins Margin of Safety % (DCF Earnings Based) Calculation

Cummins's Margin of Safety % (DCF Earnings Based) for today is calculated as

Margin of Safety % (DCF Earnings Based)=(Intrinsic Value: DCF (Earnings Based)-Current Price)/Intrinsic Value: DCF (Earnings Based)
=(225.01-581.60)/225.01
=-158.48 %

* 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.

The intrinsic value is calculated from the Discounted Earnings model with default parameters. The calculation method is the same as Discounted Cash Flow model except earnings are used in the calculation instead of free cash flow.

What does a Margin of Safety % (DCF Earnings Based) of -158.48% mean?
Cummins (XTER:CUM) has a Margin of Safety % (DCF Earnings Based) of -158.48% as of Jun. 26, 2026. Margin of Safety % (DCF Earnings Based) is the percent difference between the current price and the intrinsic DCF Earnings price. View historical data on Cummins.
Is Cummins' Margin of Safety % (DCF Earnings Based) too high?
Cummins' current Margin of Safety % (DCF Earnings Based) is -158.48%. Overall, Cummins has a GF Score™ of 84/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Cummins' Margin of Safety % (DCF Earnings Based) compare to EMR and PH?
Cummins' Margin of Safety % (DCF Earnings Based) of -158.48% can be compared against companies in the Industrial Products industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Margin of Safety % (DCF Earnings Based) for an Industrial Products company?
A good Margin of Safety % (DCF Earnings Based) depends on the Industrial Products industry context. However, Margin of Safety % (DCF Earnings Based) should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Margin of Safety % (DCF Earnings Based) mean?
A high Margin of Safety % (DCF Earnings Based) can signal that a stock is expensive relative to its fundamentals. Margin of Safety % (DCF Earnings Based) is the percent difference between the current price and the intrinsic DCF Earnings price. View historical data on Cummins. Cummins's current Margin of Safety % (DCF Earnings Based) is -158.48%. 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 (XTER:CUM) is currently considered Significantly Overvalued. The stock's GF Value™ is €260.37, compared to a current price of €581.60 — trading 123.4% above its estimated fair value. The current Margin of Safety % (DCF Earnings Based) is -158.48%. Cummins' overall GF Score™ is 84/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Margin of Safety % (DCF Earnings Based) calculated?
Margin of Safety % (DCF Earnings Based) is calculated from a company's financial statements. For Cummins (XTER:CUM), the current Margin of Safety % (DCF Earnings Based) is -158.48% as of Jun. 26, 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 (XTER:CUM) Overvalued in 2026?

Based on GuruFocus' analysis, Cummins stock appears to be overvalued. The current stock price of €581.60 is trading 123.4% above its estimated GF Value™ of €260.37. GuruFocus considers Cummins to be Significantly Overvalued.

Key valuation signals for XTER:CUM:

  • Margin of Safety % (DCF Earnings Based): -158.48%
  • GF Value™: €260.37 vs. price of €581.60 (123.4% above fair value)
  • GF Score™: 84/100 with 9 warning signs

No single metric tells the full story. See the XTER:CUM 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.
84GF Score

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Margin of Safety % (DCF Earnings Based) is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€581.60
Price
€260.37
GF Value