Question 1

What is Cummins's P/FCF ratio?

Accepted Answer

Cummins (CMI) P/FCF ratio is 34.3× as of July 22, 2026. The ratio is calculated by dividing market capitalisation by trailing twelve-month free cash flow, using USD-normalised financials (IAS 21 exchange-rate translation for non-USD reporters).

Question 2

How is the P/FCF ratio calculated?

Accepted Answer

P/FCF = Market Capitalisation ÷ Trailing Twelve-Month (TTM) Free Cash Flow, where Free Cash Flow = Operating Cash Flow − Capital Expenditures. 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 P/FCF ratio?

Accepted Answer

The price-to-free-cash-flow (P/FCF) ratio compares a company's market capitalisation to its trailing twelve-month (TTM) free cash flow. It is calculated as market cap ÷ TTM free cash flow, where free cash flow = operating cash flow − capital expenditures. Because FCF cannot be inflated by non-cash accounting items, P/FCF is often considered a cleaner measure of "earnings-power valuation" than P/E — especially for capital-intensive businesses where depreciation diverges from real cash outflows.

Question 4

What is a good P/FCF ratio for Cummins?

Accepted Answer

Mature companies that consistently convert profit into cash often trade at 15–25× P/FCF; capital-intensive businesses with lumpy capex typically trade lower. Compare against sector peers and against the company's own multi-year average — single-year P/FCF can be distorted by working-capital swings. For Cummins specifically, the relevant sector benchmark is the current sector median of 24.3×.

Question 5

Is Cummins's P/FCF ratio high or low?

Accepted Answer

Cummins's P/FCF ratio of 34.3× is below its own 5-year average of 343.4× and above the sector median of 24.3×. That places the current reading at the 66th 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 P/FCF ratio range?

Accepted Answer

In the available daily series, Cummins (CMI) P/FCF ratio has ranged from a low of 7.5× in 2006 to a high of 7324.0× in 2025. The 5-year average is 343.4× and the 5-year median is 27.1×.

Question 7

What was Cummins's P/FCF ratio in 2025?

Accepted Answer

Cummins (CMI) P/FCF ratio at the end of 2025 was 29.6×. Annual values reflect the multiple on the last trading day of each calendar year, using the trailing twelve-month free cash flow figure available at that date.

Question 8

Why does Cummins's P/FCF ratio change over time?

Accepted Answer

Valuation multiples move with two inputs: the numerator (market capitalisation, which tracks the share price) and the denominator (free cash flow). 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	$70.5B	$2.39B	29.6×	-142.1×	Dec 31, 2025
2024	$47.9B	$279M	171.7×	+159.3×	Dec 31, 2024
2023	$34B	$2.75B	12.3×	-21.8×	Dec 31, 2023
2022	$34.2B	$1B	34.2×	+13.0×	Dec 31, 2022
2021	$31.1B	$1.47B	21.1×	+5.5×	Dec 31, 2021
2020	$33.6B	$2.15B	15.7×	+4.4×	Dec 31, 2020
2019	$27.1B	$2.41B	11.3×	-1.9×	Dec 31, 2019
2018	$21B	$1.59B	13.2×	-4.1×	Dec 31, 2018
2017	$29.2B	$1.69B	17.3×	+0.2×	Dec 31, 2017
2016	$22.9B	$1.34B	17.1×	+4.8×	Dec 31, 2016
2015	$15.4B	$1.26B	12.3×	-5.5×	Dec 31, 2015
2014	$26.1B	$1.47B	17.8×	-1.5×	Dec 31, 2014
2013	$26B	$1.35B	19.3×	-7.7×	Dec 31, 2013
2012	$20.4B	$755M	27.0×	+15.0×	Dec 31, 2012
2011	$16.8B	$1.39B	12.1×	-23.9×	Dec 31, 2011
2010	$21.5B	$599M	36.0×	+24.5×	Dec 31, 2010
2009	$9.1B	$792M	11.5×	-2.9×	Dec 31, 2009
2008	$5.2B	$362M	14.4×	-17.8×	Dec 31, 2008
2007	$12.5B	$390M	32.1×	+21.2×	Dec 31, 2007
2006	$5.91B	$539M	11.0×	+3.0×	Dec 31, 2006
2005	$4.59B	$574M	8.0×	+0.3×	Dec 31, 2005
2004	$3.59B	$463M	7.7×	-120.9×	Dec 31, 2004
2003	$2.32B	$18M	128.7×	+118.0×	Dec 31, 2003
2002	$1.09B	$103M	10.6×	—	Dec 31, 2002


Thomson Reuters (TRI)	18.8×
PACCAR (PCAR)	18.6×
United Parcel Service (UPS)	18.5×
Gorman-Rupp (GRC)	18.5×
Alamo Group (ALG)	18.0×
Allegion (ALLE)	17.8×
Snap-on (SNA)	17.6×
United Airlines Holdings (UAL)	17.5×
Honeywell International (HON)	17.4×
Equifax (EFX)	17.0×
Norfolk Southern (NSC)	16.9×
FedEx (FDX)	15.9×
AGCO (AGCO)	15.4×
General Dynamics (GD)	15.3×
Carlisle Companies (CSL)	14.7×
Amentum Holdings (AMTM)	14.7×
Stanley Black & Decker (SWK)	14.4×
A. O. Smith (AOS)	14.2×
Huntington Ingalls Industries (HII)	14.1×
McGrath RentCorp (MGRC)	13.9×
Masco (MAS)	13.0×
Pool (POOL)	12.2×
Delta Air Lines (DAL)	10.1×
ABM Industries (ABM)	7.2×
Upwork (UPWK)	6.3×

P/FCF Ratio for Cummins (CMI) 2002-2026

P/FCF Ratio daily chart for Cummins (CMI)

Historical P/FCF Ratio for Cummins (CMI) from 2002 to 2025

About P/FCF Ratio at Cummins (CMI)

Cummins P/FCF Ratio by Year

Cummins P/FCF Ratio 2025: 29.6×

Cummins P/FCF Ratio 2024: 171.7×

Cummins P/FCF Ratio 2023: 12.3×

Cummins P/FCF Ratio 2022: 34.2×

Cummins P/FCF Ratio 2021: 21.1×

Sector peers by P/FCF Ratio — chart

Sector peers by P/FCF Ratio — table

Frequently asked questions

Cummins (CMI) Key Financials