CMI PEG Ratio Analysis

The PEG ratio (price/earnings-to-growth) divides a stock’s price-to-earnings ratio by its expected earnings growth rate, so a reading of 7.53x means CMI is paying a very high price for each unit of expected growth.

For context, the sector median PEG is 0.81x, placing CMI at the 93rd percentile among peers — far more expensive on a growth-adjusted basis than most comparable companies. The trend data is N/A, with both year-over-year and quarter-over-quarter changes not available, so no direction can be inferred from history. Because the level is extremely high and the trend is undefined, the main risk is that growth expectations may already be priced in, leaving little margin for error if those expectations are missed. This elevated PEG supports caution rather than enthusiasm, but it does not alone prove overvaluation absent a reliable trend. The metric aligns with the overall NEUTRAL verdict: it flags stretched valuation while not providing enough historical movement to justify a bearish call.

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