Is Cummins, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Cummins, Inc. has moved from expensive to fair. Based on the current metrics, the company appears fairly valued. Key ratios include a P/E ratio of 25, an EV to EBITDA of 15.74, and a Price to Book Value of 6.49. In comparison, peers such as Caterpillar, Inc. have a P/E of 32.72 and an EV to EBITDA of 24.99, while PACCAR, Inc. shows a more attractive P/E of 16.81 and an EV to EBITDA of 11.43.
In terms of recent performance, Cummins has outperformed the S&P 500 year-to-date with a return of 18.14% compared to the index's 13.30%. Overall, the valuation metrics and peer comparisons suggest that Cummins, Inc. is fairly valued in the current market context.