Cummins India Ltd
NSE:CUMMINSIND

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Cummins India Ltd Logo
Cummins India Ltd
NSE:CUMMINSIND
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Price: 4 479.3 INR 0.67% Market Closed
Market Cap: 1.2T INR
Section:
DCF Value
Present Value Calculation
DCF Value Calculation
Valuation Analysis
See Also

DCF Value

This DCF valuation model was created by Alpha Spread and was last updated on Nov 30, 2025.

Estimated DCF Value of one CUMMINSIND stock is 986.02 INR. Compared to the current market price of 4 479.3 INR, the stock is Overvalued by 78%.

CUMMINSIND DCF Value
Base Case
986.02 INR
Overvaluation 78%
DCF Value
Price
Worst Case
Base Case
Best Case
DCF Value: 986.02 INR

Present Value Calculation

This block is the starting point of the DCF valuation process. It calculates the present value of a company's forecasted cash flows based on selected operating model. Adjust key parameters like discount rate and terminal growth, and alter inputs such as revenue growth and margins to see their impact on valuation.

DCF Model
Base Case Scenario

The present value of cash flows over the next 5 years amounts to 75.1B INR. The present value of the terminal value is 148.7B INR. The total present value equals 223.7B INR.
Operating Model
Forecast Period
Years
Discount Rate
%
Terminal Growth
%
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DCF Model
Currency: INR
Billions
Year 1

forecasted

Year 2

forecasted

Year 3

forecasted

Year 4

forecasted

Year 5

forecasted

Terminal

forecasted

Operating Income
Revenue124150168190207216
Absolute Value
Growth
Operating Margin17.83%17.76%18.31%18.26%18.22%18.17%
Absolute Value
Operating Income222731353839
Net Operating Profit After Taxes
Taxes-3-4-5-6-7-7
Absolute Value
As % of Operating Income
NOPAT192326293132
Free Cash Flow to Firm
Net CapEx-4-4-5-6-6-6
Absolute Value
As % of Revenue
FCFF151821232526
Present Value
Discount Rate10.51%10.51%10.51%10.51%10.51%10.51%
Present Value1415151615149
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DCF Value Calculation

This stage translates the present value into DCF value per share. For firm valuation models, it adjusts present value for debt and assets to derive equity value (skipped if using equity valuation model). Finally, this equity value is divided by the number of shares to determine the DCF value per share.

Present Value to DCF Value
Capital Structure

Present Value 223.7B INR
+ Cash & Equivalents 2.3B INR
+ Investments 47.5B INR
Firm Value 273.5B INR
- Debt 204.2m INR
Equity Value 273.3B INR
/ Shares Outstanding 277.2m
CUMMINSIND DCF Value 986.02 INR
Overvalued by 78%

Valuation Analysis

Sensitivity Analysis
DCF Value Sensitivity Analysis

Sensitivity Analysis assesses how changes in key factors like revenue growth, margin, and discount rate affect a stock's DCF value. By visualizing various scenarios, from significant downturns to optimistic growth, this tool helps you understand potential valuation shifts, aiding in risk assessment and strategic decision-making.

Revenue Growth Operating Margin Discount Rate

DCF Financials
Financials used in DCF Calculation

Revenue
124.3B 216.4B
Operating Income
22.2B 39.3B
FCFF
15.3B 25.8B

See Also

Discover More

What is the DCF value of one CUMMINSIND stock?

Estimated DCF Value of one CUMMINSIND stock is 986.02 INR. Compared to the current market price of 4 479.3 INR, the stock is Overvalued by 78%.

The true DCF Value lies somewhere between the worst-case and best-case scenario values. This is because the future is not predetermined, and the stock's DCF Value is based almost entirely on the future of the company. Knowing the full range of possible stock DCF values gives a complete picture of the investment risks and opportunities.

How was the DCF Value calculated?

1. Present Value Calculation. Utilizing the DCF operating model, Cummins India Ltd's future cash flows are projected and then discounted using a chosen discount rate to determine its Present Value, which is calculated at 223.7B INR.

2. DCF Value Calculation. The company's capital structure is employed to derive the total Equity Value from the previously calculated Present Value of the cash flow. This Equity Value, when divided by the total number of outstanding shares, yields the DCF Value of 986.02 INR per share.

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