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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 IndiaNSE:CUMMINSIND +0.06%93 5-Year Yield-on-Cost % is 5.01 as of Aug. 31, 2026, which is 14% below its 10-year median of 5.80. GuruFocus rates NSE:CUMMINSIND with a GF Score™ of 93/100 and a GF Value™ of ₹4,682.56 (Modestly Overvalued). Among 1,883 Industrial Products companies, Cummins India ranks better than 77.27% on this metric.
Cummins India's yield on cost for the quarter that ended in Jun. 2026 was 5.01.
The historical rank and industry rank for Cummins India's 5-Year Yield-on-Cost % or its related term are showing as below:
NSE:CUMMINSIND'
s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 2.96 Med: 5.8 Max: 22.46
Current: 5.01
During the past 13 years, Cummins India's highest Yield on Cost was 22.46. The lowest was 2.96. And the median was 5.80.
NSE:CUMMINSIND's 5-Year Yield-on-Cost % is ranked better than 77.27% of 1883
companies
in the Industrial Products industry
Industry Median: 1.92
vs NSE:CUMMINSIND: 5.01
Cummins India (NSE:CUMMINSIND) 5-Year Yield-on-Cost % Explanation
Of course the risk here is that the company may not raise its dividends as it did before. The key is to select the companies that can consistently raise its dividends. Usually companies with long history of raising dividends tend to do so.
Cummins India 5-Year Yield-on-Cost % Related Terms
NSE:CUMMINSIND vs GEV, ETN, PH: 5-Year Yield-on-Cost % Comparison
For the Specialty Industrial Machinery subindustry, Cummins India's 5-Year Yield-on-Cost %, along with its competitors' market caps and 5-Year Yield-on-Cost % 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 5-Year Yield-on-Cost % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Cummins India's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where Cummins India's 5-Year Yield-on-Cost % falls into.
Dividend Yield % and dividend growth of a stock is an important factor for income investors. But if company A raises its dividend constantly faster than company B, company A's future dividend yield might be much higher than Company B's even if their yields are the same now and their stock prices do not change.
Yield on Cost assumes that you buy and the stock today, and hold it for 5 years. If the company raises it dividends at the same rate as it did over the past 5 years, the dividends investors receive annually in 5 years relative to the stock price today.
Therefore, Yield-on-Cost of Cummins India is calculated as
Cummins India (NSE:CUMMINSIND) has a 5-Year Yield-on-Cost % of 5.01 as of Aug. 31, 2026. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Cummins India and its competitors. This is 14% below median its historical median of 5.80. Over the past decade, Cummins India's 5-Year Yield-on-Cost % has ranged from 2.96 to 22.46. According to the industry distribution chart, Cummins India ranks #428 out of 1883 companies in the Industrial Products industry, placing it in the top 22.7%.
Is Cummins India's 5-Year Yield-on-Cost % too high?
Cummins India's current 5-Year Yield-on-Cost % of 5.01 is 14% below median its 10-year median of 5.80. Over the past 10 years, this metric has ranged from a low of 2.96 to a high of 22.46. The Industrial Products industry median 5-Year Yield-on-Cost % is 1.92. Cummins India's value of 5.01 is 160.9% above this industry median. Based on the distribution chart, Cummins India ranks #428 out of 1883 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, Cummins India has a GF Score™ of 93/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Cummins India's 5-Year Yield-on-Cost % compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Cummins India ranks #428 out of 1883 companies for 5-Year Yield-on-Cost %. This places Cummins India in the top 23% of its industry — outperforming the majority of peers. The industry median 5-Year Yield-on-Cost % is 1.92. Cummins India's value of 5.01 is 160.9% above this benchmark. Historically, Cummins India's own 5-Year Yield-on-Cost % has ranged from 2.96 to 22.46 over the past decade. While the company's 10-year median is 5.80 vs. the industry median of 1.92, 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 5-Year Yield-on-Cost % for an Industrial Products company?
The median 5-Year Yield-on-Cost % among Industrial Products companies is 1.92, based on 1,883 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year Yield-on-Cost % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year Yield-on-Cost % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Cummins India's current 5-Year Yield-on-Cost % of 5.01 is 160.9% 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 5-Year Yield-on-Cost % mean?
A high 5-Year Yield-on-Cost % can signal that a stock is expensive relative to its fundamentals. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Cummins India and its competitors. For the Industrial Products industry, the median 5-Year Yield-on-Cost % is 1.92 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cummins India's current 5-Year Yield-on-Cost % is 5.01, which is 14% below median its own 10-year median of 5.80. 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 Modestly Overvalued. The stock's GF Value™ is ₹4,682.56, compared to a current price of ₹5,193.00 — trading 10.9% above its estimated fair value. The current 5-Year Yield-on-Cost % is 5.01, which is 14% below median its 10-year median of 5.80 and 160.9% above the Industrial Products industry median of 1.92. 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 5-Year Yield-on-Cost % calculated?
5-Year Yield-on-Cost % is calculated from a company's financial statements. For Cummins India (NSE:CUMMINSIND), the current 5-Year Yield-on-Cost % is 5.01 as of Aug. 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 (NSE:CUMMINSIND) Overvalued in 2026?
Based on GuruFocus' analysis, Cummins India stock appears to be overvalued.
The current stock price of ₹5,193.00 is trading 10.9% above its estimated GF Value™ of ₹4,682.56.
GuruFocus considers Cummins India to be Modestly Overvalued.
Key valuation signals for NSE:CUMMINSIND:
5-Year Yield-on-Cost %: 5.01 (14% below median its 10-year median of 5.80)
GF Value™: ₹4,682.56 vs. price of ₹5,193.00 (10.9% above fair value)
Industry Position: 160.9% above the Industrial Products median (#428 of 1883)
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
5-Year Yield-on-Cost % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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