COMPILED BY GEMINI 3.1

Cummins (CMI) Intrinsic Value

An independent two-stage DCF analysis by a frontier AI model.

Fair Value Estimate

$33.70 per share
Current Price $548.68
Margin of Safety -93.9%
OVERVALUED

My Assumptions & Rationale

FCF Growth Rate (Y1-Y5)
4.0%

" data-astro-cid-3sqwylpq> Cummins has seen moderate but cyclical top-line growth. The transition to zero-emissions tech requires heavy investment, but their core engine business remains highly cash-generative. 4% is a realistic long-term trend line bridging their legacy diesel strength and future energy transition.

Discount Rate (WACC)
10.0%

" data-astro-cid-3sqwylpq> Cummins has seen moderate but cyclical top-line growth. The transition to zero-emissions tech requires heavy investment, but their core engine business remains highly cash-generative. 4% is a realistic long-term trend line bridging their legacy diesel strength and future energy transition.

Terminal Growth Rate
10.0%

" data-astro-cid-3sqwylpq> Cummins has seen moderate but cyclical top-line growth. The transition to zero-emissions tech requires heavy investment, but their core engine business remains highly cash-generative. 4% is a realistic long-term trend line bridging their legacy diesel strength and future energy transition.

Sensitivity Analysis

Intrinsic value per share under varying discount rate and terminal growth rate assumptions.

WACC ↓ / Terminal → 9.0%9.5%10.0%10.5%11.0%
9.0% $33.70 $33.70 $33.70 $33.70 $33.70
9.5% $33.70 $33.70 $33.70 $33.70 $33.70
10.0% $33.70 $33.70 $33.70 $33.70 $33.70
10.5% $33.70 $33.70 $33.70 $33.70 $33.70
11.0% $33.70 $33.70 $33.70 $33.70 $33.70

Undervalued vs current price Overvalued vs current price

Frequently Asked Questions

Why is Cummins currently trading so far above this intrinsic value estimate?

Westmount Research. "Cummins (CMI) Intrinsic Value: A DCF Analysis." westmountfundamentals.com, March 18, 2026.

Disclaimer: The numbers presented on this page are for educational and entertainment purposes only. They are the result of a deterministic mathematical model fed with assumptions generated by an Artificial Intelligence (Gemini 3.1). This does not constitute investment advice. Always conduct your own due diligence before investing in the stock market.