Cummins Inc.

AI-generated fair value estimate for this company.

Method: 10-year two-stage unlevered FCF DCF: $3,000M normalized base FCF (below the TTM $3,367M peak); 8% FCF growth years 1-5 reflecting the data-center power-generation demand tailwind plus the core engine-replacement cycle, 5% years 6-10; 8% discount rate; 3% terminal growth; less $4,362M net debt; 137.66M shares outstanding.

Reasoning: Cummins is seeing a new secular demand driver from AI data-center backup/prime power generators layered on top of its core heavy-truck and industrial engine cycle, supporting above-trend near-term FCF growth before settling into a typical industrial terminal growth rate.