Ametek Inc (AME) is overvalued and Cummins Inc (CMI) is slightly overvalued.
Both trade above our estimate of their intrinsic value. CMI is the closer of the two: -11%, against -78% for AME.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 9.7% (average of 3 methods) values the shares at $137.77; the price of $245.41 is 78% above that value, and 74% of that value comes from beyond year five.
Leak Score 58/100 on 10 of 12 signals
Discounting its cash flows at 10.3% (average of 3 methods) values the shares at $475.37; the price of $526.13 is 11% above that value, and 73% of that value comes from beyond year five.
Leak Score 46/100 on 10 of 12 signals
| Metric | AME | CMI |
|---|---|---|
| Verdict | Overvalued | Slightly overvalued |
| Price | $245.41 | $526.13 |
| Intrinsic value | $137.77 | $475.37 |
| Margin of safety | -78% | -11% |
| Leak Score | 58/100 (10/12) | 46/100 (10/12) |
| Market cap | $56.3B | $72.4B |
| Revenue growth, 5 years | 10.3% | 11.2% |
| Operating margin | 26.5% | 11.4% |
| Net margin | 20.0% | 7.8% |
| Return on equity | 14.6% | 22.0% |
| Debt to equity | 0.21 | 0.64 |
| P/E | 35.9x | 26.9x |
| Forward P/E | 26.6x | 15.2x |
| P/B | 5.0x | 5.6x |
| Dividend yield | 0.6% | 1.7% |