Cummins Inc (CMI) is slightly overvalued and Emerson Electric Co (EMR) is overvalued.
Both trade above our estimate of their intrinsic value. CMI is the closer of the two: -11%, against -51% for EMR.
Values as of the 22 Sept 2026 close.
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
Discounting its cash flows at 10.0% (average of 3 methods) values the shares at $102.12; the price of $154.19 is 51% above that value, and 73% of that value comes from beyond year five.
Leak Score 51/100 on 9 of 12 signals
| Metric | CMI | EMR |
|---|---|---|
| Verdict | Slightly overvalued | Overvalued |
| Price | $526.13 | $154.19 |
| Intrinsic value | $475.37 | $102.12 |
| Margin of safety | -11% | -51% |
| Leak Score | 46/100 (10/12) | 51/100 (9/12) |
| Market cap | $72.4B | $86.0B |
| Revenue growth, 5 years | 11.2% | 1.4% |
| Operating margin | 11.4% | 20.6% |
| Net margin | 7.8% | 13.8% |
| Return on equity | 22.0% | 12.8% |
| Debt to equity | 0.64 | 0.68 |
| P/E | 26.9x | 33.7x |
| Forward P/E | 15.2x | 21.2x |
| P/B | 5.6x | 4.2x |
| Dividend yield | 1.7% | 1.4% |