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Cummins IndiaBOM:500480 +0.25%90 PB Ratio is 17.64 as of Jul. 31, 2026, which is 158% above its 10-year median of 6.85. GuruFocus rates BOM:500480 with a GF Score™ of 90/100 and a GF Value™ of ₹4,413.07 (Modestly Overvalued). The stock has 4 warning signs investors should review. Among 2,982 Industrial Products companies, Cummins India ranks worse than 97.52% on this metric.
The PB Ratio, or Price-to-Book ratio, or Price/Book, is a financial ratio used to compare a company's market price to its Book Value per Share. As of today (2026-07-31), Cummins India's share price is ₹5394.10. Cummins India's Book Value per Share for the quarter that ended in Mar. 2026 was ₹305.74. Hence, Cummins India's PB Ratio of today is 17.64.
Warning Sign:
Cummins India Ltd stock PB Ratio (=18.32) is close to 10-year high of 19.29.
The historical rank and industry rank for Cummins India's PB Ratio or its related term are showing as below:
BOM:500480'
s PB Ratio Range Over the Past 10 Years
Min: 1.88 Med: 6.85 Max: 19.29
Current: 17.6
During the past 13 years, Cummins India's highest PB Ratio was 19.29. The lowest was 1.88. And the median was 6.85.
BOM:500480's PB Ratio is ranked worse than 97.52% of 2982
companies
in the Industrial Products industry
Industry Median: 2.085
vs BOM:500480: 17.60
During the past 12 months, Cummins India's average Book Value Per Share Growth Rate was 12.10% per year.
During the past 3 years, the average Book Value Per Share Growth Rate was 13.80% per year.
During the past 5 years, the average Book Value Per Share Growth Rate was 13.10% per year.
During the past 10 years, the average Book Value Per Share Growth Rate was 8.60% per year.
During the past 13 years, the highest 3-Year average Book Value Per Share Growth Rate of Cummins India was 18.00% per year. The lowest was 4.10% per year. And the median was 13.60% per year.
The PB Ratio works the best for the businesses that earn most of their profit from their assets, e.g. banks and insurance companies.
Be Aware
Some businesses have very light assets, such as software companies or insurance agencies. The PB Ratio does not work well for these companies. Some companies even have negative equity, so the PB Ratio cannot be applied to them.
Cummins India PB Ratio Related Terms
Cummins India PB Ratio Historical Data
* Premium members only.
The historical data trend for Cummins India's PB 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.
For the Specialty Industrial Machinery subindustry, Cummins India's PB Ratio, along with its competitors' market caps and PB 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 PB Ratio vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Cummins India's PB Ratio distribution charts can be found below:
* The bar in red indicates where Cummins India's PB Ratio falls into.
The PB Ratio, or Price-to-Book ratio, or Price/Book, is a financial ratio used to compare a company's market price to its Book Value per Share. It is a ratio widely used to value stocks.
Cummins India's PB Ratio for today is calculated as follows:
* 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.
It can also be calculated from the numbers for the whole company:
A closely related ratio is called Price-to-Tangible-Book. The difference between Price-to-Tangible-Book and PB Ratio is that book value other than intangibles are used in the calculation.
Cummins India (BOM:500480) has a PB Ratio of 17.64 as of Jul. 31, 2026. Price-to-Book ratio is the ratio of share price to a company's book value per share. View historical data on Cummins India and its competitors. This is 158% above median its historical median of 6.85. Over the past decade, Cummins India's PB Ratio has ranged from 1.88 to 19.29. According to the industry distribution chart, Cummins India ranks #2908 out of 2982 companies in the Industrial Products industry, placing it in the top 97.5%.
Is Cummins India's PB Ratio too high?
Cummins India's current PB Ratio of 17.64 is 158% above median its 10-year median of 6.85. Over the past 10 years, this metric has ranged from a low of 1.88 to a high of 19.29. The Industrial Products industry median PB Ratio is 2.09. Cummins India's value of 17.64 is 746% above this industry median. Based on the distribution chart, Cummins India ranks #2908 out of 2982 companies in the Industrial Products industry, which is in the bottom quartile relative to peers. Overall, Cummins India has a GF Score™ of 90/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Cummins India's PB Ratio compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Cummins India ranks #2908 out of 2982 companies for PB Ratio. This places Cummins India in the lower half of its industry. The industry median PB Ratio is 2.09. Cummins India's value of 17.64 is 746% above this benchmark. Historically, Cummins India's own PB Ratio has ranged from 1.88 to 19.29 over the past decade. While the company's 10-year median is 6.85 vs. the industry median of 2.09, Cummins India 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 PB Ratio for an Industrial Products company?
The median PB Ratio among Industrial Products companies is 2.09, based on 2,982 companies in the industry. Companies in the top quartile (top 25%) have a PB Ratio significantly above this median, while those in the bottom quartile fall well below. However, PB Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Cummins India's current PB Ratio of 17.64 is 746% 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 PB Ratio mean?
A high PB Ratio can signal that a stock is expensive relative to its fundamentals. Price-to-Book ratio is the ratio of share price to a company's book value per share. View historical data on Cummins India and its competitors. For the Industrial Products industry, the median PB Ratio is 2.09 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cummins India's current PB Ratio is 17.64, which is 158% above median its own 10-year median of 6.85. 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 (BOM:500480) is currently considered Modestly Overvalued. The stock's GF Value™ is ₹4,413.07, compared to a current price of ₹5,394.10 — trading 22.2% above its estimated fair value. The current PB Ratio is 17.64, which is 158% above median its 10-year median of 6.85 and 746% above the Industrial Products industry median of 2.09. Cummins India's overall GF Score™ is 90/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is PB Ratio calculated?
PB Ratio is calculated from a company's financial statements. For Cummins India (BOM:500480), the current PB Ratio is 17.64 as of Jul. 31, 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 (BOM:500480) Overvalued in 2026?
Based on GuruFocus' analysis, Cummins India stock appears to be overvalued.
The current stock price of ₹5,394.10 is trading 22.2% above its estimated GF Value™ of ₹4,413.07.
GuruFocus considers Cummins India to be Modestly Overvalued.
Key valuation signals for BOM:500480:
PB Ratio: 17.64 (158% above median its 10-year median of 6.85)
GF Value™: ₹4,413.07 vs. price of ₹5,394.10 (22.2% above fair value)
Industry Position: 746% above the Industrial Products median (#2908 of 2982)
No single metric tells the full story. See the BOM:500480 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.
90GF Score
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