Cummins Fair Value
CU
The fair market value of CUM.DU stock is 221.32 EUR. Relative to the market price of 345.6 EUR Cummins is overvalued by 33.7%
Eyestock's quantitative valuation approach is based on the method of estimating historical multipliers. To determine whether a stock is undervalued, we compare its current price to our estimated of fair value. The more undervalued a stock is, the more investment is profitable.
Fair Relative Value
Cummins Valuation
Current CUM.DU share ticker price is 345.6 EUR.
The fair value level of 221.32 EUR can be considered as an effective entry point for long-term investors to start investing in CUM.DU stock. For a more in-depth assessment, we provide a minimum value that can be used to increase a stock position and a maximum one that can be used to reduce it.
Price chart is not available
Current market price
Current price is 36% higher its fair value
Current price is 45% higher its minimum value
Current price is 13% higher its maximum value
Market price:
CUM.DU stock is greatly overvalued
It means the current price may concern as a High Risk Entry Point
Cummins Inc Stock Valuation Calculator
How do we value a stock?
As fair value, we use the product of the median Price-to-earnings ratios at the end of each reporting period for the last 5 years and earnings per share for the last 12 months. By analogy with the fair value, we calculate the maximum and minimum ones using the corresponding P/E extremums.
1
Maximum P/E over 5 years
20.4
2
Median P/E over 5 years
14.93
3
Minimum P/E over 5 years
12.73
4
Earning per share (last 12 months)
15.74 USD
Maximum value
1
x
4
=
302.35 EUR
Fair value
2
x
4
=
221.32 EUR
Minimum value
3
x
4
=
188.64 EUR
Cummins Inc price metrics
13.86
Annual return (geometric mean)
29.52
Risk (standard deviation) of returns
β
0.82
Beta (volatility compared to market)