Price to Book Value (P/BV)
since 2005
Calculation
Cummins Inc., P/BV, long-term trends, calculation
| P/BV | = | Share price1, 2, 3 | ÷ | Book value per share1 (BVPS) | BVPS1 | = | Total Cummins Inc. shareholders’ equity1 (in millions) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 12, 2024 | 4.12 | = | 256.85 | ÷ | 62.39 | 62.39 | = | 8,850 | ÷ | 141,856,847 | |
| Feb 14, 2023 | 3.91 | = | 248.41 | ÷ | 63.48 | 63.48 | = | 8,975 | ÷ | 141,375,256 | |
| Feb 8, 2022 | 3.76 | = | 223.51 | ÷ | 59.50 | 59.50 | = | 8,474 | ÷ | 142,426,735 | |
| Feb 10, 2021 | 4.49 | = | 245.11 | ÷ | 54.60 | 54.60 | = | 8,062 | ÷ | 147,657,584 | |
| Feb 11, 2020 | 3.29 | = | 164.30 | ÷ | 49.96 | 49.96 | = | 7,507 | ÷ | 150,269,665 | |
| Feb 11, 2019 | 3.17 | = | 148.18 | ÷ | 46.70 | 46.70 | = | 7,348 | ÷ | 157,338,874 | |
| Feb 14, 2018 | 3.79 | = | 166.00 | ÷ | 43.81 | 43.81 | = | 7,259 | ÷ | 165,683,334 | |
| Feb 13, 2017 | 3.74 | = | 152.85 | ÷ | 40.88 | 40.88 | = | 6,875 | ÷ | 168,155,330 | |
| Feb 12, 2016 | 2.28 | = | 97.01 | ÷ | 42.48 | 42.48 | = | 7,406 | ÷ | 174,320,797 | |
| Feb 17, 2015 | 3.26 | = | 138.98 | ÷ | 42.59 | 42.59 | = | 7,749 | ÷ | 181,945,783 | |
| Feb 18, 2014 | 3.56 | = | 143.10 | ÷ | 40.23 | 40.23 | = | 7,510 | ÷ | 186,682,826 | |
| Feb 20, 2013 | 3.30 | = | 114.83 | ÷ | 34.78 | 34.78 | = | 6,603 | ÷ | 189,844,829 | |
| Feb 21, 2012 | 4.31 | = | 123.30 | ÷ | 28.61 | 28.61 | = | 5,492 | ÷ | 191,927,547 | |
| Feb 24, 2011 | 4.27 | = | 100.87 | ÷ | 23.60 | 23.60 | = | 4,670 | ÷ | 197,847,368 | |
| Feb 26, 2010 | 3.03 | = | 56.78 | ÷ | 18.74 | 18.74 | = | 3,773 | ÷ | 201,359,036 | |
| Feb 27, 2009 | 1.30 | = | 20.80 | ÷ | 16.04 | 16.04 | = | 3,230 | ÷ | 201,352,073 | |
| Feb 26, 2008 | 3.17 | = | 53.40 | ÷ | 16.86 | 16.86 | = | 3,409 | ÷ | 202,192,548 | |
| Feb 27, 2007 | 2.53 | = | 34.04 | ÷ | 13.45 | 13.45 | = | 2,802 | ÷ | 208,398,444 | |
| Feb 28, 2006 | 2.70 | = | 27.07 | ÷ | 10.03 | 10.03 | = | 1,864 | ÷ | 185,823,756 |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$
2 Data adjusted for splits and stock dividends.
3 Closing price as at the filing date of Cummins Inc. Annual Report.
The long-term trajectory of the Price to Book Value (P/BV) ratio reflects a pattern of cyclical volatility superimposed on a general trend of increasing market valuation relative to net asset value.
- Book Value Growth
- Book value per share (BVPS) demonstrated a consistent and substantial upward trend, increasing from 10.03 US$ in 2006 to 62.39 US$ by 2024. This steady growth indicates a persistent accumulation of equity over the analyzed period, with only marginal contractions observed in 2009, 2017, and 2024.
- Valuation Contractions
- Significant declines in the P/BV ratio occurred during specific periods of market volatility. The most pronounced contraction was recorded in 2009, where the ratio fell to 1.30, the lowest point in the series. A similar, though less severe, decline occurred in 2016, with the ratio dropping to 2.28. In both instances, the compression of the multiple was driven by sharp reductions in share price while the BVPS remained relatively resilient.
- Valuation Expansion and Peaks
- The P/BV ratio experienced several periods of expansion, reaching notable peaks in 2012 (4.31) and 2021 (4.49). The 2021 peak represents the highest valuation relative to book value in the recorded period. More recent figures from 2023 and 2024 indicate that the ratio has stabilized at a higher baseline, ranging between 3.91 and 4.12, compared to the historical averages seen between 2006 and 2015.
- Price-Value Correlation
- Analysis indicates that fluctuations in the P/BV ratio are primarily driven by share price volatility rather than changes in the underlying book value. While BVPS grew in a near-linear fashion, the share price exhibited significant swings, resulting in the observed variability of the ratio. This suggests that market sentiment and external economic conditions have been the primary drivers of the valuation multiple over the 18-year period.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.
How can I help you?
Comparison to Competitors
Cummins Inc., P/BV, long-term trends, comparison to competitors
| Cummins Inc. | Boeing Co. | Caterpillar Inc. | Eaton Corp. plc | GE Aerospace | Honeywell International Inc. | Lockheed Martin Corp. | RTX Corp. | |
|---|---|---|---|---|---|---|---|---|
| Feb 12, 2024 | 4.12 | — | 8.25 | 6.07 | 5.43 | 8.11 | 15.54 | 2.05 |
| Feb 14, 2023 | 3.91 | — | 8.09 | 4.04 | 2.43 | 8.02 | 12.67 | 1.97 |
| Feb 8, 2022 | 3.76 | — | 6.62 | 3.63 | 2.64 | 6.91 | 9.62 | 1.95 |
| Feb 10, 2021 | 4.49 | — | 7.20 | 3.54 | 2.89 | 8.07 | 15.27 | 1.53 |
| Feb 11, 2020 | 3.29 | — | 5.16 | 2.48 | 3.66 | 6.97 | 39.60 | 3.24 |
| Feb 11, 2019 | 3.17 | 674.83 | 5.44 | 2.12 | 3.00 | 5.96 | 61.11 | 2.71 |
| Feb 14, 2018 | 3.79 | 569.92 | 6.98 | 2.06 | 1.96 | 6.44 | — | 3.38 |
| Feb 13, 2017 | 3.74 | 122.80 | 4.42 | 2.19 | 3.47 | 4.79 | 49.61 | 3.22 |
| Feb 12, 2016 | 2.28 | 12.17 | 2.56 | 1.72 | 2.79 | 4.35 | 21.37 | 2.59 |
| Feb 17, 2015 | 3.26 | 12.04 | 3.09 | 2.13 | 2.04 | 4.63 | 17.92 | 3.49 |
| Feb 18, 2014 | 3.56 | 6.50 | 2.96 | 2.15 | 1.96 | 4.25 | 10.65 | 3.14 |
| Feb 20, 2013 | 3.30 | 9.78 | 3.57 | 1.94 | 1.95 | 4.24 | 727.88 | 3.18 |
| Feb 21, 2012 | 4.31 | 16.10 | 5.78 | 2.32 | 1.75 | 4.31 | 28.67 | 3.48 |
| Feb 24, 2011 | 4.27 | 19.33 | 6.02 | 2.47 | 1.86 | 4.26 | 7.56 | 3.65 |
| Feb 26, 2010 | 3.03 | 20.59 | 4.16 | 1.67 | 1.47 | 3.27 | 7.00 | 3.12 |
| Feb 27, 2009 | 1.30 | — | 2.63 | 0.95 | 1.10 | 3.38 | 9.51 | 2.82 |
| Feb 26, 2008 | 3.17 | 7.24 | 5.00 | 2.28 | 2.97 | 4.52 | 4.38 | 3.28 |
| Feb 27, 2007 | 2.53 | 15.15 | 6.33 | 2.88 | 3.17 | 3.94 | 6.23 | 3.92 |
| Feb 28, 2006 | 2.70 | 5.26 | 5.81 | 2.73 | 3.15 | 3.05 | 4.05 | 3.39 |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Sector (Capital Goods)
Cummins Inc., P/BV, long-term trends, comparison to sector (capital goods)
| Cummins Inc. | Capital Goods | |
|---|---|---|
| Feb 12, 2024 | 4.12 | 6.94 |
| Feb 14, 2023 | 3.91 | 5.31 |
| Feb 8, 2022 | 3.76 | 4.77 |
| Feb 10, 2021 | 4.49 | 5.05 |
| Feb 11, 2020 | 3.29 | 6.91 |
| Feb 11, 2019 | 3.17 | 6.11 |
| Feb 14, 2018 | 3.79 | 5.42 |
| Feb 13, 2017 | 3.74 | 4.64 |
| Feb 12, 2016 | 2.28 | 3.45 |
| Feb 17, 2015 | 3.26 | 3.17 |
| Feb 18, 2014 | 3.56 | 2.85 |
| Feb 20, 2013 | 3.30 | 2.77 |
| Feb 21, 2012 | 4.31 | 2.89 |
| Feb 24, 2011 | 4.27 | 2.90 |
| Feb 26, 2010 | 3.03 | 2.29 |
| Feb 27, 2009 | 1.30 | 1.86 |
| Feb 26, 2008 | 3.17 | 3.46 |
| Feb 27, 2007 | 2.53 | 3.91 |
| Feb 28, 2006 | 2.70 | 3.47 |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Industry (Industrials)
Cummins Inc., P/BV, long-term trends, comparison to industry (industrials)
| Cummins Inc. | Industrials | |
|---|---|---|
| Feb 12, 2024 | 4.12 | 6.85 |
| Feb 14, 2023 | 3.91 | 5.50 |
| Feb 8, 2022 | 3.76 | 5.44 |
| Feb 10, 2021 | 4.49 | 5.89 |
| Feb 11, 2020 | 3.29 | 6.28 |
| Feb 11, 2019 | 3.17 | 5.96 |
| Feb 14, 2018 | 3.79 | 5.37 |
| Feb 13, 2017 | 3.74 | 4.89 |
| Feb 12, 2016 | 2.28 | 3.68 |
| Feb 17, 2015 | 3.26 | 3.70 |
| Feb 18, 2014 | 3.56 | 3.14 |
| Feb 20, 2013 | 3.30 | 3.06 |
| Feb 21, 2012 | 4.31 | 3.09 |
| Feb 24, 2011 | 4.27 | 3.05 |
| Feb 26, 2010 | 3.03 | 2.43 |
| Feb 27, 2009 | 1.30 | 2.01 |
| Feb 26, 2008 | 3.17 | 3.45 |
| Feb 27, 2007 | 2.53 | 3.75 |
| Feb 28, 2006 | 2.70 | 3.95 |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).