Cummins Net Worth
Cummins Net Worth Breakdown | CMI |
Cummins Net Worth Analysis
Cummins' net worth analysis, or its valuation, is the process of determining the total value of the company. This involves assessing a range of factors, including Cummins' financial performance, assets, liabilities, and potential for growth. The ultimate goal is to provide a clear understanding of Cummins' overall worth, which can help investors make informed investment decisions. There are several methods that can be used to perform Cummins' net worth analysis. One common approach is to calculate Cummins' market capitalization.Another approach is to use the price-to-earnings ratio (P/E ratio), which compares Cummins' stock price to its earnings per share (EPS). Discounted cash flow (DCF) analysis is another popular method for assessing Cummins' net worth. This approach calculates the present value of Cummins' future cash flows, taking into account factors such as growth rate, profitability, and risk. By comparing the present value of Cummins' cash flows to its current stock price, investors can gain a better understanding of the company's overall value. Finally, investors may use comparable company analysis to evaluate Cummins' net worth. This involves comparing Cummins' financial metrics to similar companies in the same industry. By identifying companies with similar financial characteristics, investors can gain insight into Cummins' net worth relative to its peers.
Enterprise Value |
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To determine if Cummins is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Cummins' net worth research are outlined below:
| Cummins generated a negative expected return over the last 90 days | |
| Cummins is unlikely to experience financial distress in the next 2 years | |
| Over 87.0% of the company shares are held by institutions such as insurance companies | |
| On 6th of March 2025 Cummins paid $ 1.82 per share dividend to its current shareholders | |
| Latest headline from thelincolnianonline.com: Cummins Inc. Shares Purchased by Thompson Siegel Walmsley LLC |
Cummins Quarterly Good Will |
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Cummins uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Cummins. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Cummins' previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 6th of February 2024 Upcoming Quarterly Report | View | |
| 7th of May 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 6th of February 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Cummins Target Price Consensus
Cummins target price is determined by taking all analyst projections and averaging them out. There is no one specific way to measure analysts' performance other than comparing it to past results via a very sophisticated attribution analysis. Cummins' target price projections below should be used in combination with other traditional price prediction techniques such as stock price forecasting, investor sentiment analysis, technical analysis, earnings estimate, and various momentum models.
| 24 | Buy |
Most Cummins analysts issue ratings four times a year, at intervals of three months. Ratings are usually accompanied by a target price to help potential investors understand Cummins stock's fair price compared to its market value. Analysts arrive at stock ratings after researching the public financial statements of Cummins, talking to its executives and customers, or listening to those companies' conference calls.
Macroaxis Advice Exposure ValuationCummins Target Price Projection
Cummins' current and average target prices are 321.70 and 380.48, respectively. The current price of Cummins is the price at which Cummins is currently trading. On the other hand, Cummins' target price is what analysts think the stock is worth or could sell for in the future. The more significant the discrepancy between the two prices, the more it stimulates investors to act.Target Price
Analyst Consensus On Cummins Target Price
Know Cummins' Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Cummins is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Cummins backward and forwards among themselves. Cummins' institutional investor refers to the entity that pools money to purchase Cummins' securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Dimensional Fund Advisors, Inc. | 2024-12-31 | 1.6 M | Arnhold & S. Bleichroeder Advisers, Llc | 2024-12-31 | 1.5 M | Legal & General Group Plc | 2024-12-31 | 1.5 M | Norges Bank | 2024-12-31 | 1.4 M | Hotchkis & Wiley Capital Management Llc | 2024-12-31 | 1.3 M | Royal Bank Of Canada | 2024-12-31 | 1.3 M | Fmr Inc | 2024-12-31 | 1.2 M | Lsv Asset Management | 2024-12-31 | 1.2 M | Stifel Financial Corp | 2024-12-31 | 1.1 M | Vanguard Group Inc | 2024-12-31 | 17 M | Blackrock Inc | 2024-12-31 | 12.3 M |
Follow Cummins' market capitalization trends
The company currently falls under 'Large-Cap' category with a total capitalization of 44.23 B.Market Cap |
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Project Cummins' profitablity
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.15 | 0.15 | |
| Return On Capital Employed | 0.18 | 0.10 | |
| Return On Assets | 0.13 | 0.13 | |
| Return On Equity | 0.38 | 0.40 |
When accessing Cummins' net worth, it's important to look at multiple sources and consider different scenarios. For example, gross profit margin measures Cummins' profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Cummins' profitability and make more informed investment decisions.
Evaluate Cummins' management efficiency
Cummins has Return on Asset of 0.0745 % which means that on every $100 spent on assets, it made $0.0745 of profit. This is way below average. In the same way, it shows a return on shareholders' equity (ROE) of 0.3836 %, implying that it generated $0.3836 on every 100 dollars invested. Cummins' management efficiency ratios could be used to measure how well Cummins manages its routine affairs as well as how well it operates its assets and liabilities. As of now, Cummins' Return On Tangible Assets are increasing as compared to previous years. The Cummins' current Return On Assets is estimated to increase to 0.13, while Return On Capital Employed is projected to decrease to 0.1. As of now, Cummins' Other Current Assets are increasing as compared to previous years. The Cummins' current Total Current Assets is estimated to increase to about 15.5 B, while Debt To Assets are projected to decrease to 0.19.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 81.30 | 85.36 | |
| Tangible Book Value Per Share | 47.36 | 49.73 | |
| Enterprise Value Over EBITDA | 8.59 | 5.90 | |
| Price Book Value Ratio | 4.72 | 4.96 | |
| Enterprise Value Multiple | 8.59 | 5.90 | |
| Price Fair Value | 4.72 | 4.96 | |
| Enterprise Value | 49 B | 51.4 B |
Cummins has shown resilience through effective management strategies. Our analysis examines how these strategies influence financial outcomes and investor returns which helps in understanding the stock's long-term potential.
Enterprise Value Revenue 1.4533 | Revenue | Quarterly Revenue Growth (0.01) | Revenue Per Share | Return On Equity |
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Cummins insiders, such as employees or executives, is commonly permitted as long as it does not rely on Cummins' material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Cummins insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Jennifer Rumsey over a month ago Disposition of tradable shares by Jennifer Rumsey of Cummins at 348.84 subject to Rule 16b-3 | ||
Satterthwaite Tony over six months ago Disposition of 24250 shares by Satterthwaite Tony of Cummins at 109.09 subject to Rule 16b-3 | ||
Lisa Yoder over a year ago Acquisition by Lisa Yoder of 1407 shares of Cummins subject to Rule 16b-3 |
Cummins Corporate Filings
F4 | 4th of March 2025 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
ASR | 13th of February 2025 Automatic Shelf Registration Statement under Rule 415 filed with the U.S. Securities and Exchange Commission (SEC) | ViewVerify |
8K | 4th of February 2025 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
F3 | 8th of January 2025 The report used by insiders such as officers, directors, and major shareholders (beneficial owners holding more than 10% of any class of the company's equity securities) to declare their ownership of a company's stock | ViewVerify |
Cummins Earnings Estimation Breakdown
The calculation of Cummins' earning per share is based on the data from the past 12 consecutive months, used for reporting the company's financial figures. The next projected EPS of Cummins is estimated to be 4.9763 with the future projection ranging from a low of 4.24 to a high of 5.49. Please be aware that this consensus of annual earnings estimates for Cummins is based on EPS before non-recurring items and includes expenses related to employee stock options.Last Reported EPS
4.24 Lowest | Expected EPS | 5.49 Highest |
Cummins Earnings Projection Consensus
Suppose the current estimates of Cummins' value are higher than the current market price of the Cummins stock. In this case, investors may conclude that Cummins is overpriced and will exhibit bullish sentiment. On the other hand, if the present value is lower than the stock price, analysts may conclude that the market undervalues the equity. These scenarios may suggest that the market is not as efficient as it should be at the estimation time, and Cummins' stock will quickly adjusts to the new information provided by the consensus estimate.
| Number of Analysts | Historical Accuracy | Last Reported EPS | Estimated EPS for 31st of March 2025 | Current EPS (TTM) | |
| 23 | 86.5% | 4.536 | 4.9763 | 28.37 |
Cummins Earnings History
Earnings estimate consensus by Cummins analysts from Wall Street is used by the market to judge Cummins' stock performance. Investors also use these earnings estimates to evaluate and project the stock performance into the future in order to make their investment decisions. However, we recommend analyzing not only Cummins' upcoming profit reports and earnings-per-share forecasts but also comparing them to our different valuation methods.Cummins Quarterly Gross Profit |
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Cummins Earnings per Share Projection vs Actual
Actual Earning per Share of Cummins refers to what the company shows during its earnings calls or quarterly reports. The Expected EPS is what analysts covering Cummins predict the company's earnings will be in the future. The higher the earnings per share of Cummins, the better is its profitability. While calculating the Earning per Share, we use the weighted ratio, as the number of shares outstanding can change over time.Cummins Estimated Months Earnings per Share
For an investor who is primarily interested in generating an income out of investing in entities such as Cummins, the EPS ratio can tell if the company is intending to increase its current dividend. Although EPS is an essential tool for investors, it should not be used in isolation. EPS of Cummins should always be considered in relation to other companies to make a more educated investment decision.Cummins Quarterly Analyst Estimates and Surprise Metrics
Earnings surprises can significantly impact Cummins' stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
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2025-02-04 | 2024-12-31 | 4.6925 | 4.536 | -0.1565 | 3 | ||
2024-11-05 | 2024-09-30 | 4.8 | 5.86 | 1.06 | 22 | ||
2024-08-01 | 2024-06-30 | 4.81 | 5.26 | 0.45 | 9 | ||
2024-05-02 | 2024-03-31 | 5.13 | 5.1 | -0.03 | 0 | ||
2024-02-06 | 2023-12-31 | 4.48 | 3.97 | -0.51 | 11 | ||
2023-11-02 | 2023-09-30 | 4.68 | 4.59 | -0.09 | 1 | ||
2023-08-03 | 2023-06-30 | 5.29 | 5.05 | -0.24 | 4 | ||
2023-05-02 | 2023-03-31 | 4.75 | 5.55 | 0.8 | 16 | ||
2023-02-06 | 2022-12-31 | 4.5 | 4.43 | -0.07 | 1 | ||
2022-11-03 | 2022-09-30 | 4.85 | 2.82 | -2.03 | 41 | ||
2022-08-02 | 2022-06-30 | 4.35 | 4.94 | 0.59 | 13 | ||
2022-05-03 | 2022-03-31 | 3.56 | 4.04 | 0.48 | 13 | ||
2022-02-03 | 2021-12-31 | 3.15 | 2.73 | -0.42 | 13 | ||
2021-11-02 | 2021-09-30 | 3.91 | 3.69 | -0.22 | 5 | ||
2021-08-03 | 2021-06-30 | 4.05 | 4.1 | 0.05 | 1 | ||
2021-05-04 | 2021-03-31 | 3.47 | 4.04 | 0.57 | 16 | ||
2021-02-04 | 2020-12-31 | 2.8 | 3.36 | 0.56 | 20 | ||
2020-10-27 | 2020-09-30 | 2.43 | 3.57 | 1.14 | 46 | ||
2020-07-28 | 2020-06-30 | 0.93 | 1.95 | 1.02 | 109 | ||
2020-04-28 | 2020-03-31 | 2.17 | 3.18 | 1.01 | 46 | ||
2020-02-04 | 2019-12-31 | 2.42 | 2.56 | 0.14 | 5 | ||
2019-10-29 | 2019-09-30 | 3.83 | 3.88 | 0.05 | 1 | ||
2019-07-30 | 2019-06-30 | 4.4 | 4.27 | -0.13 | 2 | ||
2019-04-30 | 2019-03-31 | 3.57 | 3.97 | 0.4 | 11 | ||
2019-02-06 | 2018-12-31 | 3.81 | 3.48 | -0.33 | 8 | ||
2018-10-30 | 2018-09-30 | 3.76 | 4.05 | 0.29 | 7 | ||
2018-07-31 | 2018-06-30 | 3.63 | 3.29 | -0.34 | 9 | ||
2018-05-01 | 2018-03-31 | 2.93 | 3.3 | 0.37 | 12 | ||
2018-02-06 | 2017-12-31 | 2.67 | 3.03 | 0.36 | 13 | ||
2017-10-31 | 2017-09-30 | 2.46 | 2.71 | 0.25 | 10 | ||
2017-08-01 | 2017-06-30 | 2.58 | 2.53 | -0.05 | 1 | ||
2017-05-02 | 2017-03-31 | 1.81 | 2.36 | 0.55 | 30 | ||
2017-02-09 | 2016-12-31 | 1.99 | 2.25 | 0.26 | 13 | ||
2016-11-01 | 2016-09-30 | 1.96 | 2.02 | 0.06 | 3 | ||
2016-08-02 | 2016-06-30 | 2.16 | 2.4 | 0.24 | 11 | ||
2016-05-03 | 2016-03-31 | 1.78 | 1.87 | 0.09 | 5 | ||
2016-02-04 | 2015-12-31 | 2.11 | 2.02 | -0.09 | 4 | ||
2015-10-27 | 2015-09-30 | 2.6 | 2.14 | -0.46 | 17 | ||
2015-07-28 | 2015-06-30 | 2.55 | 2.62 | 0.07 | 2 | ||
2015-04-28 | 2015-03-31 | 2.14 | 2.14 | 0.0 | 0 | ||
2015-02-05 | 2014-12-31 | 2.51 | 2.56 | 0.05 | 1 | ||
2014-10-28 | 2014-09-30 | 2.28 | 2.32 | 0.04 | 1 | ||
2014-07-28 | 2014-06-30 | 2.38 | 2.43 | 0.05 | 2 | ||
2014-04-29 | 2014-03-31 | 1.67 | 1.87 | 0.2 | 11 | ||
2014-02-06 | 2013-12-31 | 1.98 | 1.94 | -0.04 | 2 | ||
2013-10-29 | 2013-09-30 | 2.11 | 1.94 | -0.17 | 8 | ||
2013-07-30 | 2013-06-30 | 1.99 | 2.2 | 0.21 | 10 | ||
2013-04-30 | 2013-03-31 | 1.86 | 1.44 | -0.42 | 22 | ||
2013-02-06 | 2012-12-31 | 1.75 | 2.0 | 0.25 | 14 | ||
2012-10-31 | 2012-09-30 | 1.83 | 1.78 | -0.05 | 2 | ||
2012-07-31 | 2012-06-30 | 2.28 | 2.45 | 0.17 | 7 | ||
2012-05-01 | 2012-03-31 | 2.22 | 2.38 | 0.16 | 7 | ||
2012-02-02 | 2011-12-31 | 2.23 | 2.56 | 0.33 | 14 | ||
2011-10-25 | 2011-09-30 | 2.25 | 2.35 | 0.1 | 4 | ||
2011-07-26 | 2011-06-30 | 2.01 | 2.41 | 0.4 | 19 | ||
2011-04-26 | 2011-03-31 | 1.44 | 1.75 | 0.31 | 21 | ||
2011-02-01 | 2010-12-31 | 1.72 | 1.84 | 0.12 | 6 | ||
2010-10-26 | 2010-09-30 | 1.41 | 1.33 | -0.08 | 5 | ||
2010-07-27 | 2010-06-30 | 0.91 | 1.25 | 0.34 | 37 | ||
2010-04-27 | 2010-03-31 | 0.35 | 0.75 | 0.4 | 114 | ||
2010-02-02 | 2009-12-31 | 0.76 | 1.37 | 0.61 | 80 | ||
2009-10-30 | 2009-09-30 | 0.37 | 0.56 | 0.19 | 51 | ||
2009-07-30 | 2009-06-30 | 0.26 | 0.3 | 0.04 | 15 | ||
2009-04-30 | 2009-03-31 | 0.23 | 0.26 | 0.03 | 13 | ||
2009-02-03 | 2008-12-31 | 0.42 | 0.45 | 0.03 | 7 | ||
2008-10-31 | 2008-09-30 | 1.19 | 1.17 | -0.02 | 1 | ||
2008-07-30 | 2008-06-30 | 1.23 | 1.49 | 0.26 | 21 | ||
2008-04-30 | 2008-03-31 | 0.89 | 0.97 | 0.08 | 8 | ||
2008-02-01 | 2007-12-31 | 1.05 | 1.0 | -0.05 | 4 | ||
2007-10-25 | 2007-09-30 | 0.97 | 0.92 | -0.05 | 5 | ||
2007-07-26 | 2007-06-30 | 0.79 | 1.07 | 0.28 | 35 | ||
2007-04-27 | 2007-03-31 | 0.43 | 0.71 | 0.28 | 65 | ||
2007-01-29 | 2006-12-31 | 0.94 | 0.94 | 0.0 | 0 | ||
2006-10-31 | 2006-09-30 | 0.92 | 0.84 | -0.08 | 8 | ||
2006-07-27 | 2006-06-30 | 0.87 | 0.96 | 0.09 | 10 | ||
2006-04-28 | 2006-03-31 | 0.66 | 0.68 | 0.02 | 3 | ||
2006-01-30 | 2005-12-31 | 0.78 | 0.76 | -0.02 | 2 | ||
2005-10-27 | 2005-09-30 | 0.65 | 0.73 | 0.08 | 12 | ||
2005-07-22 | 2005-06-30 | 0.6 | 0.71 | 0.11 | 18 | ||
2005-04-21 | 2005-03-31 | 0.39 | 0.49 | 0.1 | 25 | ||
2005-02-02 | 2004-12-31 | 0.52 | 0.6 | 0.08 | 15 | ||
2004-10-20 | 2004-09-30 | 0.38 | 0.45 | 0.07 | 18 | ||
2004-07-23 | 2004-06-30 | 0.33 | 0.44 | 0.11 | 33 | ||
2004-04-22 | 2004-03-31 | 0.18 | 0.19 | 0.01 | 5 | ||
2004-01-27 | 2003-12-31 | 0.24 | 0.27 | 0.03 | 12 | ||
2003-10-28 | 2003-09-30 | 0.17 | 0.15 | -0.02 | 11 | ||
2003-07-25 | 2003-06-30 | 0.03 | 0.09 | 0.06 | 200 | ||
2003-04-17 | 2003-03-31 | -0.2 | -0.21 | -0.01 | 5 | ||
2003-01-29 | 2002-12-31 | -0.03 | -0.08 | -0.05 | 166 | ||
2002-10-17 | 2002-09-30 | 0.23 | 0.25 | 0.02 | 8 | ||
2002-07-19 | 2002-06-30 | 0.05 | 0.08 | 0.03 | 60 | ||
2002-04-25 | 2002-03-31 | -0.2 | -0.19 | 0.01 | 5 | ||
2002-01-23 | 2001-12-31 | 0.02 | 0.02 | 0.0 | 0 | ||
2001-10-11 | 2001-09-30 | 0.02 | 0.02 | 0.0 | 0 | ||
2001-07-12 | 2001-06-30 | 0.01 | 0.02 | 0.01 | 100 | ||
2001-04-12 | 2001-03-31 | -0.17 | -0.17 | 0.0 | 0 | ||
2001-01-26 | 2000-12-31 | -0.1 | -0.11 | -0.01 | 10 | ||
2000-10-12 | 2000-09-30 | 0.29 | 0.17 | -0.12 | 41 | ||
2000-07-13 | 2000-06-30 | 0.4 | 0.41 | 0.01 | 2 | ||
2000-04-26 | 2000-03-31 | 0.27 | 0.27 | 0.0 | 0 | ||
2000-01-28 | 1999-12-31 | 0.39 | 0.46 | 0.07 | 17 | ||
1999-10-14 | 1999-09-30 | 0.28 | 0.34 | 0.06 | 21 | ||
1999-07-15 | 1999-06-30 | 0.3 | 0.38 | 0.08 | 26 | ||
1999-04-15 | 1999-03-31 | 0.16 | 0.16 | 0.0 | 0 | ||
1999-01-28 | 1998-12-31 | 0.18 | 0.19 | 0.01 | 5 | ||
1998-10-15 | 1998-09-30 | 0.13 | 0.13 | 0.0 | 0 | ||
1998-07-16 | 1998-06-30 | 0.34 | 0.35 | 0.01 | 2 | ||
1998-04-16 | 1998-03-31 | 0.21 | 0.24 | 0.03 | 14 | ||
1998-01-29 | 1997-12-31 | 0.41 | 0.42 | 0.01 | 2 | ||
1997-10-15 | 1997-09-30 | 0.36 | 0.35 | -0.01 | 2 | ||
1997-07-16 | 1997-06-30 | 0.31 | 0.35 | 0.04 | 12 | ||
1997-04-16 | 1997-03-31 | 0.24 | 0.27 | 0.03 | 12 | ||
1997-01-29 | 1996-12-31 | 0.21 | 0.26 | 0.05 | 23 | ||
1996-10-15 | 1996-09-30 | 0.15 | 0.17 | 0.02 | 13 | ||
1996-07-16 | 1996-06-30 | 0.27 | 0.24 | -0.03 | 11 | ||
1996-04-16 | 1996-03-31 | 0.27 | 0.3 | 0.03 | 11 |
Cummins Corporate Directors
| Robert Bernhard | Independent Director | Profile | |
| Alexis Herman | Lead Independent Director | Profile | |
| Mark Smith | Executive Director - Investor Relations | Profile | |
| William Miller | Independent Director | Profile |
Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Cummins. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in population. For more detail on how to invest in Cummins Stock please use our How to Invest in Cummins guide.You can also try the Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Is Construction Machinery & Heavy Transportation Equipment space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Cummins. If investors know Cummins will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Cummins listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.277 | Dividend Share 7 | Earnings Share 28.37 | Revenue Per Share | Quarterly Revenue Growth (0.01) |
The market value of Cummins is measured differently than its book value, which is the value of Cummins that is recorded on the company's balance sheet. Investors also form their own opinion of Cummins' value that differs from its market value or its book value, called intrinsic value, which is Cummins' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Cummins' market value can be influenced by many factors that don't directly affect Cummins' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Cummins' value and its price as these two are different measures arrived at by different means. Investors typically determine if Cummins is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Cummins' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.