Name: Cummins Inc. (NYSE:CMI) | Enterprise Value (EV)
Creator: Stock Analysis on Net

Current EV
Historical EV

Cummins Inc., current enterprise value calculation

Current share price (P)	$280.29
No. shares of common stock outstanding	136,779,875
US$ in millions
Common equity (market value)¹	38,338)
Add: Noncontrolling interests (per books)	1,054)
Total equity	39,392)
Add: Loans payable (per books)	280)
Add: Commercial paper (per books)	1,496)
Add: Current maturities of long-term debt (per books)	118)
Add: Long-term debt (per books)	4,802)
Total equity and debt	46,088)
Less: Cash and cash equivalents	2,179)
Less: Marketable securities	562)
Enterprise value (EV)	43,347)

Based on: 10-K (reporting date: 2023-12-31).

¹ Common equity (market value) = Share price × No. shares of common stock outstanding
= 280.29 × 136,779,875

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Cummins Inc., EV calculation

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Share price^1, 2	$256.85	$248.41	$223.51	$245.11	$164.30
No. shares of common stock outstanding¹	141,856,847	141,375,256	142,426,735	147,657,584	150,269,665
US$ in millions
Common equity (market value)³	36,436)	35,119)	31,834)	36,192)	24,689)
Add: Noncontrolling interests (book value)	1,054)	992)	927)	927)	958)
Total equity	37,490)	36,111)	32,761)	37,119)	25,647)
Add: Loans payable (book value)	280)	210)	208)	169)	100)
Add: Commercial paper (book value)	1,496)	2,574)	313)	323)	660)
Add: Current maturities of long-term debt (book value)	118)	573)	59)	62)	31)
Add: Long-term debt (book value)	4,802)	4,498)	3,579)	3,610)	1,576)
Total equity and debt	44,186)	43,966)	36,920)	41,283)	28,014)
Less: Cash and cash equivalents	2,179)	2,101)	2,592)	3,401)	1,129)
Less: Marketable securities	562)	472)	595)	461)	341)
Enterprise value (EV)	41,445)	41,393)	33,733)	37,421)	26,544)

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).

¹ Data adjusted for splits and stock dividends.

² Closing price as at the filing date of Cummins Inc. Annual Report.

³ 2023 Calculation
Common equity (market value) = Share price × No. shares of common stock outstanding
= 256.85 × 141,856,847

Enterprise Value (EV) exhibited a general upward trajectory over the five-year period ending December 31, 2023. Starting at US$ 26,544 million in 2019, the EV increased to US$ 41,445 million by 2023, representing a total growth of approximately 56%. This growth was characterized by a sharp increase in 2020, a correction in 2021, and a subsequent recovery that plateaued between 2022 and 2023.

Market Value of Common Equity: A volatile but generally positive trend is observed in the market value of common equity. After a substantial rise from US$ 24,689 million in 2019 to US$ 36,192 million in 2020, the value declined to US$ 31,834 million in 2021. However, a recovery followed, with the market value reaching US$ 36,436 million by the end of 2023.
Total Equity and Capitalization: Total equity followed a pattern closely mirroring the market value, peaking in 2020 at US$ 37,119 million before experiencing a dip in 2021. By December 31, 2023, total equity had risen to US$ 37,490 million. Simultaneously, total equity and debt grew from US$ 28,014 million in 2019 to US$ 44,186 million in 2023, indicating an expansion of the total capital employed by the organization.
Enterprise Value Correlation: The fluctuations in Enterprise Value correlate strongly with changes in both market capitalization and total debt. The peak in EV observed in 2022 (US$ 41,393 million) and 2023 (US$ 41,445 million) suggests a stabilization of the company's overall valuation. The narrow variance between the EV and the sum of total equity and debt indicates that the valuation is closely tied to the combined value of the company's equity and liabilities.

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Cummins Inc. (NYSE:CMI)

Enterprise Value (EV)

Current Enterprise Value (EV)

Historical Enterprise Value (EV)