P/E ratio for Cummins (CMI)
P/E ratio as of October 2023 (TTM): 12.7
According to Cummins 's latest financial reports and stock price the company's current price-to-earnings ratio (TTM) is 12.7205. At the end of 2020 the company had a P/E ratio of 18.8.
P/E ratio history for Cummins from 2001 to 2022
PE ratio at the end of each year
| Year | P/E ratio | Change |
|---|---|---|
| 2020 | 18.8 | 52.24% |
| 2019 | 12.4 | |
| 2017 | 29.7 | 79.42% |
| 2016 | 16.5 | 47.39% |
| 2015 | 11.2 |
P/E ratio for similar companies or competitors
| Company | P/E ratio | P/E ratio differencediff. | Country |
|---|---|---|---|
 BorgWarner BWA | 9.95 | -21.79% | 🇺🇸 USA |
 Caterpillar CAT | 16.9 | 32.81% | 🇺🇸 USA |
 General Electric GE | 13.6 | 7.29% | 🇺🇸 USA |
 Paccar PCAR | 12.2 | -4.02% | 🇺🇸 USA |
 CNH Industrial
CNHI | 6.95 | -45.33% | 🇬🇧 UK |
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.