CMI EV/EBITDA Analysis

The EV/EBITDA ratio compares a company’s total enterprise value to its earnings before interest, taxes, depreciation, and amortization; at 17.2x, investors pay $17.20 for each $1 of that cash-flow measure.

This sits above the sector median of 13.6x, placing CMI at the 64th percentile among peers, meaning it is more expensive than most similar companies. The ratio is decreasing, with a year-over-year change of -9.9% and a quarter-over-quarter change of -6.5%, and the last 8 quarters show a consistent downward path. While the 17.2x level still carries a premium to the sector, the falling trend reduces that premium over time, which can lower valuation risk or signal a cheaper entry point if cash flows hold. The combination of an above-median level with a downward trend suggests modest valuation pressure easing, not a clear bargain or a stretched peak. This metric supports the overall NEUTRAL verdict: the premium to peers is real but shrinking, leaving the stock neither strongly undervalued nor overvalued.

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