CMI PEG Ratio Analysis
Updated 1949h ago·SEC filings & market data
Key Takeaway
CMI's PEG ratio of 3.09x indicates the market is pricing in modest earnings growth relative to its valuation multiple, meaning investors are paying approximately $3.09 for every dollar of expected annual earnings growth.
Sector Performance
84th percentileCMI
3.09x
Sector Median
0.97x
Sector Avg
2.92x
Prior Period
2.82x(Apr 2026)
Deep Analysis
CMI's PEG ratio of 3.09x indicates the market is pricing in modest earnings growth relative to its valuation multiple, meaning investors are paying approximately $3.09 for every dollar of expected annual earnings growth.
This valuation stands well above the sector median of 0.65x, placing CMI at the 85th percentile—suggesting the stock commands a premium compared to industry peers. The trend shows stability, with the ratio holding steady at 2.82x across the last seven quarters before ticking up slightly to 3.09x most recently, indicating consistent market expectations rather than deteriorating sentiment. For investors, this elevated PEG suggests either that growth expectations are optimistic relative to peers, or that the stock may offer limited upside unless earnings growth accelerates materially to justify the premium valuation.
Frequently Asked Questions
What does the PEG Ratio tell investors about CMI?
The PEG ratio adjusts P/E for expected growth. A PEG below 1.0 may signal undervaluation; above 2.0 may suggest the growth story is priced in.
How is the PEG Ratio calculated?
PEG Ratio is calculated as: P/E Ratio / EPS Growth Rate.
Who are CMI's closest peers by PEG Ratio?
The closest peers by PEG Ratio include: EBAY (8.15x), VTR (8.27x), DOV (8.39x), MTD (8.61x), KR (9.25x).
Learn More About PEG Ratio
The Formula
P/E Ratio / EPS Growth Rate
Why It Matters
The PEG ratio adjusts P/E for expected growth. A PEG below 1.0 may signal undervaluation; above 2.0 may suggest the growth story is priced in.
Master CMI's Valuation
Get the complete institutional research report covering all fundamental and technical metrics.
View full CMI research report →CMI
3.09x
Sector Median
0.97x
Sector Avg
2.92x
How CMI's PEG Ratio compares to sector peers.
Also Analyze
Not financial advice. Research tool only. Data may be delayed.