Question 1

What is Cummins's EV/EBITDA ratio?

Accepted Answer

Cummins (CMI) EV/EBITDA ratio is 19.8× as of June 5, 2026. The ratio is calculated by dividing enterprise value by trailing twelve-month EBITDA, using USD-normalised financials (IAS 21 exchange-rate translation for non-USD reporters).

Question 2

How is the EV/EBITDA ratio calculated?

Accepted Answer

EV/EBITDA = Enterprise Value ÷ Trailing Twelve-Month (TTM) EBITDA, where Enterprise Value = Market Capitalisation + Total Debt − Cash & Short-Term Investments. All inputs are sourced from audited GAAP/IFRS filings and translated to USD using period-end exchange rates so the multiple is comparable across companies and currencies.

Question 3

What is the EV/EBITDA ratio?

Accepted Answer

The EV/EBITDA ratio (the enterprise multiple) compares enterprise value (EV) to trailing twelve-month (TTM) EBITDA. EV is calculated as market capitalisation + total debt − cash & short-term investments. Because EV/EBITDA is capital-structure-neutral and ignores non-cash depreciation and amortisation, it is the standard multiple used in M&A and for cross-company or cross-border comparisons. Note: this calculation uses a simplified EV (minority interest and preferred equity excluded due to data availability), consistent with most public financial-data providers.

Question 4

What is a good EV/EBITDA ratio for Cummins?

Accepted Answer

Mature, cash-generative businesses commonly trade in the 8–12× EV/EBITDA range; higher-growth, asset-light companies often trade at 15–25×+. EV/EBITDA is most useful for comparing companies with different capital structures (debt levels) or tax regimes. For Cummins specifically, the relevant sector benchmark is the current sector median of 16.2×.

Question 5

Is Cummins's EV/EBITDA ratio high or low?

Accepted Answer

Cummins's EV/EBITDA ratio of 19.8× is above its own 5-year average of 10.3× and above the sector median of 16.2×. That places the current reading at the 99th percentile of its 10-year history. A higher multiple usually reflects stronger expected growth, lower perceived risk, or higher returns on capital; a lower multiple reflects the opposite.

Question 6

What is Cummins's historical EV/EBITDA ratio range?

Accepted Answer

In the available daily series, Cummins (CMI) EV/EBITDA ratio has ranged from a low of 3.5× in 2008 to a high of 21.7× in 2026. The 5-year average is 10.3× and the 5-year median is 9.7×.

Question 7

What was Cummins's EV/EBITDA ratio in 2025?

Accepted Answer

Cummins (CMI) EV/EBITDA ratio at the end of 2025 was 13.9×. Annual values reflect the multiple on the last trading day of each calendar year, using the trailing twelve-month EBITDA figure available at that date.

Question 8

Why does Cummins's EV/EBITDA ratio change over time?

Accepted Answer

Valuation multiples move with two inputs: the numerator (enterprise value, which tracks share price plus net debt) and the denominator (EBITDA). Share-price changes — driven by interest rates, earnings expectations, risk appetite, and broader market sentiment — typically dominate short-term moves, while changes in the underlying fundamental drive the longer-term trend. As a result, the ratio can rise during stock-price rallies even if the business itself has not become more valuable, and fall during sell-offs even when fundamentals are improving.


2025	$70.54B	$5.38B	13.9×	+5.5×	Dec 31, 2025
2024	$47.90B	$6.34B	8.4×	-4.3×	Dec 31, 2024
2023	$33.99B	$3.02B	12.7×	+2.2×	Dec 31, 2023
2022	$34.24B	$3.80B	10.5×	+1.3×	Dec 31, 2022
2021	$31.08B	$3.52B	9.2×	-1.8×	Dec 31, 2021
2020	$33.61B	$3.11B	11.0×	+3.2×	Dec 31, 2020
2019	$27.11B	$3.62B	7.9×	+1.5×	Dec 31, 2019
2018	$21.01B	$3.48B	6.4×	-3.4×	Dec 31, 2018
2017	$29.22B	$3.03B	9.8×	+0.6×	Dec 31, 2017
2016	$22.91B	$2.53B	9.2×	+3.4×	Dec 31, 2016
2015	$15.45B	$2.60B	5.9×	-2.8×	Dec 31, 2015
2014	$26.09B	$2.95B	8.6×	-1.1×	Dec 31, 2014
2013	$26.04B	$2.57B	9.7×	+2.4×	Dec 31, 2013
2012	$20.41B	$2.66B	7.3×	+2.2×	Dec 31, 2012
2011	$16.77B	$3.04B	5.2×	-5.4×	Dec 31, 2011
2010	$21.54B	$1.98B	10.6×	+2.0×	Dec 31, 2010
2009	$9.10B	$1.00B	8.6×	+5.1×	Dec 31, 2009
2008	$5.20B	$1.53B	3.5×	-5.1×	Dec 31, 2008
2007	$12.54B	$1.45B	8.6×	+4.6×	Dec 31, 2007
2006	$5.91B	$1.43B	4.1×	-0.5×	Dec 31, 2006
2005	$4.59B	$1.13B	4.5×	-2.1×	Dec 31, 2005
2004	$3.59B	$690.00M	6.6×	-5.0×	Dec 31, 2004
2003	$2.32B	$306.00M	11.6×	+5.7×	Dec 31, 2003
2002	$1.09B	$330.00M	5.9×	-1.7×	Dec 31, 2002
2001	$1.45B	$304.00M	7.6×	—	Dec 31, 2001


MDU Resources Group (MDU)	12.9×
Automatic Data Processing (ADP)	12.6×
Canadian National Railway (CNI)	12.6×
Brady (BRC)	12.6×
Snap-on (SNA)	12.5×
Stanley Black & Decker (SWK)	12.5×
A. O. Smith (AOS)	12.1×
Franklin Electric Co. (FELE)	12.0×
Builders FirstSource (BLDR)	11.7×
Textron (TXT)	11.1×
ABM Industries (ABM)	10.7×
FedEx (FDX)	10.4×
Amentum Holdings (AMTM)	10.2×
Gartner (IT)	10.0×
United Rentals (URI)	9.4×
McGrath RentCorp (MGRC)	9.3×
United Parcel Service (UPS)	8.8×
Alamo Group (ALG)	8.4×
Alaska Air Group (ALK)	8.2×
Southwest Airlines (LUV)	8.0×
AGCO (AGCO)	7.4×
Matthews International (MATW)	7.0×
United Airlines Holdings (UAL)	5.6×
Delta Air Lines (DAL)	5.4×
Versant Media Group, Inc. Class A (VSNT)	3.0×

EV/EBITDA for Cummins (CMI)

EV/EBITDA daily chart for Cummins (CMI)

Historical EV/EBITDA for Cummins (CMI) from 2001 to 2025

About EV/EBITDA at Cummins (CMI)

Cummins EV/EBITDA by Year

Cummins EV/EBITDA 2025: 13.9×

Cummins EV/EBITDA 2024: 8.4×

Cummins EV/EBITDA 2023: 12.7×

Cummins EV/EBITDA 2022: 10.5×

Cummins EV/EBITDA 2021: 9.2×

Sector peers by EV/EBITDA — chart

Sector peers by EV/EBITDA — table

Frequently asked questions

Cummins (CMI) Key Financials

EV/EBITDA daily chart for Cummins (CMI)

Historical EV/EBITDA for Cummins (CMI) from 2001 to 2025

About EV/EBITDA at Cummins (CMI)

Cummins EV/EBITDA by Year

Cummins EV/EBITDA 2025: 13.9×

Cummins EV/EBITDA 2024: 8.4×

Cummins EV/EBITDA 2023: 12.7×

Cummins EV/EBITDA 2022: 10.5×

Cummins EV/EBITDA 2021: 9.2×

Sector peers by EV/EBITDA — chart

Sector peers by EV/EBITDA — table

Frequently asked questions

+What is Cummins's EV/EBITDA ratio?

+How is the EV/EBITDA ratio calculated?

+What is the EV/EBITDA ratio?

+What is a good EV/EBITDA ratio for Cummins?

+Is Cummins's EV/EBITDA ratio high or low?

+What is Cummins's historical EV/EBITDA ratio range?

+What was Cummins's EV/EBITDA ratio in 2025?

+Why does Cummins's EV/EBITDA ratio change over time?

Cummins (CMI) Key Financials