P/E ratio for Cummins India (CUMMINSIND.NS)
P/E ratio as of May 2024 (TTM): 65.2
According to Cummins India's latest financial reports and stock price the company's current price-to-earnings ratio (TTM) is 65.1964. At the end of 2022 the company had a P/E ratio of 34.9.
P/E ratio history for Cummins India from 2012 to 2023
PE ratio at the end of each year
| Year | P/E ratio | Change |
|---|---|---|
| 2022 | 34.9 | 18.53% |
| 2021 | 29.5 | 17.81% |
| 2020 | 25.0 | 13.29% |
| 2019 | 22.1 | |
| 2015 | 37.4 | 13.71% |
| 2014 | 32.9 | 60.09% |
| 2013 | 20.5 | 2.69% |
| 2012 | 20.0 |
How to read a P/E ratio?
The Price/Earnings ratio measures the relationship between a company's stock price and its earnings per share. A low but positive P/E ratio stands for a company that is generating high earnings compared to its current valuation and might be undervalued. A company with a high negative (near 0) P/E ratio stands for a company that is generating heavy losses compared to its current valuation.
Companies with a P/E ratio over 30 or a negative one are generaly seen as "growth stocks" meaning that investors typically expect the company to grow or to become profitable in the future.
Companies with a positive P/E ratio bellow 10 are generally seen as "value stocks" meaning that the company is already very profitable and unlikely to strong growth in the future.