Cummins India Ltd
NSE:CUMMINSIND

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Cummins India Ltd
NSE:CUMMINSIND
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Price: 5 257.2998 INR -0.58% Market Closed
Market Cap: ₹1.5T

EV/FCFF

95.2
Current
32%
More Expensive
vs 3-y average of 71.9

Enterprise Value to Free Cash Flow to Firm (EV/FCFF) ratio compares a company`s total enterprise value to the free cash flow available to all investors, both debt and equity holders. It shows how much investors are paying for each dollar of cash flow the business generates before interest payments.

EV/FCFF
95.2
=
Enterprise Value
₹1.3T
/
Free Cash Flow to Firm
₹14.9B

Enterprise Value to Free Cash Flow to Firm (EV/FCFF) ratio compares a company`s total enterprise value to the free cash flow available to all investors, both debt and equity holders. It shows how much investors are paying for each dollar of cash flow the business generates before interest payments.

EV/FCFF
95.2
=
Enterprise Value
₹1.3T
/
Free Cash Flow to Firm
₹14.9B

Valuation Scenarios

Cummins India Ltd is trading above its 3-year average

If EV/FCFF returns to its 3-Year Average (71.9), the stock would be worth ₹3 972.96 (24% downside from current price).

Statistics
Positive Scenarios
0/4
Maximum Downside
-62%
Maximum Upside
No Upside Scenarios
Average Downside
42%
Scenario EV/FCFF Value Implied Price Upside/Downside
Current Multiple 95.2 ₹5 257.3
0%
3-Year Average 71.9 ₹3 972.96
-24%
5-Year Average 61.7 ₹3 410.26
-35%
Industry Average 51.7 ₹2 853.46
-46%
Country Average 35.9 ₹1 982.46
-62%

Forward EV/FCFF
Today’s price vs future free cash flow to firm

Not enough data available to calculate forward EV/FCFF

Peer Comparison

All Multiples
EV/FCFF
P/E
All Countries
Close

Market Distribution

Higher than 81% of companies in India
Percentile
81st
Based on 1 703 companies
81st percentile
95.2
Low
0.1 — 20.7
Typical Range
20.7 — 64.8
High
64.8 —
Distribution Statistics
India
Min 0.1
30th Percentile 20.7
Median 35.9
70th Percentile 64.8
Max 50 585.9

Cummins India Ltd
Glance View

Cummins India Ltd, a subsidiary of Cummins Inc., has carved a unique niche in the engine manufacturing industry, deeply intertwining its fortune with the rhythmic hum of diesel and natural gas engines. This company did not just emerge in the market; it was built on a legacy of innovation and resilience. Spanning across a multitude of segments, Cummins India specializes in the design and production of engines for automotive, industrial, power generation, and marine applications. Its strength lies in developing reliable and durable engines that cater to diverse power requirements. The company’s facilities, strategically located across India, are hubs of cutting-edge technology and efficiency, enabling it to produce a plethora of components that are integral to its operations, from turbochargers to generator sets. Every product emerges from a harmony of engineering expertise and quality control, driving Cummins India’s commitment to sustainable energy solutions. At the heart of Cummins India's revenue generation is a sophisticated orchestration of its product and service offerings. The company not only capitalizes on the sale of its engines but also thrives by providing after-market support through maintenance services and spare parts distribution, ensuring smooth operations for its clientele. This dual approach fosters a stable revenue stream and cultivates long-term relationships with customers. By strategically tapping into emerging markets and embracing environmental sustainability, Cummins India pivots toward future growth while adhering to its core values of innovation and integrity. The company continually refines its business model, enhancing its product efficiency and environmental compliance to adapt to the ever-evolving energy landscape. Through technological advancements and market foresight, Cummins India has positioned itself as a formidable player in the industrial engine space, constantly innovating to keep pace with global energy trends.

CUMMINSIND Intrinsic Value
2 058.3357 INR
Overvaluation 61%
Intrinsic Value
Price ₹5 257.2998
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