Garmin Valuation
| GRMN Stock | USD 214.52 4.19 1.99% |
At this time, the firm appears to be overvalued. Garmin retains a regular Real Value of $136.45 per share. The prevalent price of the firm is $214.52. Our model calculates the value of Garmin from evaluating the firm fundamentals such as Return On Equity of 0.22, return on asset of 0.1, and Current Valuation of 38.07 B as well as inspecting its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Garmin's valuation include:
Price Book 5.3805 | Enterprise Value 38.1 B | Enterprise Value Ebitda 23.8427 | Price Sales 6.7802 | Forward PE 27.3973 |
Overvalued
Today
Please note that Garmin's price fluctuation is very steady at this time. Calculation of the real value of Garmin is based on 3 months time horizon. Increasing Garmin's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Since Garmin is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Garmin Stock. However, Garmin's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 214.52 | Real 136.45 | Target 112.0 | Hype 214.71 | Naive 193.76 |
The intrinsic value of Garmin's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Garmin's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Garmin helps investors to forecast how Garmin stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Garmin more accurately as focusing exclusively on Garmin's fundamentals will not take into account other important factors: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Garmin's intrinsic value based on its ongoing forecasts of Garmin's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Garmin's closest peers.
Garmin Cash |
|
Garmin Valuation Trend
Knowing Garmin's actual value is paramount for traders when making sound investment determinations. Using both Garmin's enterprise value as well as its market capitalization is the best way to estimate the value of the company and is usually enough for investors to make market timing decisions.
Garmin Revenue by Product
Garmin Total Value Analysis
Garmin is currently expected to have valuation of 38.07 B with market capitalization of 40.39 B, debt of 113.03 M, and cash on hands of 1.28 B. Please note that valuation may be misleading and is a subject to auditing or accounting errors. We encourage investors to vigilantly validate all of the Garmin fundamentals before making equity appraisal based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
38.07 B | 40.39 B | 113.03 M | 1.28 B |
Garmin Investor Information
About 19.0% of the company shares are held by company insiders. The company recorded earning per share (EPS) of 7.87. Garmin last dividend was issued on the 12th of December 2024. The entity had 2:1 split on the 16th of August 2006. Based on the analysis of Garmin's profitability, liquidity, and operating efficiency, Garmin is performing exceptionally good at this time. It has a great probability to report excellent financial results in December.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Operating Profit Margin | 0.3 | 0.24 |
|
| |||||
| Total Cash From Operating Activities | 1.4 B | 1.4 B |
|
| |||||
| Operating Income | 681.3 M | 1.1 B |
|
|
Garmin Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Garmin has an asset utilization ratio of 60.77 percent. This suggests that the Company is making $0.61 for each dollar of assets. An increasing asset utilization means that Garmin is more efficient with each dollar of assets it utilizes for everyday operations.Garmin Ownership Allocation
Garmin has a total of 192.02 Million outstanding shares. Over half of Garmin's outstanding shares are owned by outside corporations. These outside corporations are typically referred to as corporate investors that purchase positions in a given instrument to benefit from reduced trade commissions. On August 16, 2024, Representative Kathy Manning of US Congress acquired under $15k worth of Garmin's common stock.Garmin Profitability Analysis
The company reported the previous year's revenue of 5.23 B. Net Income was 1.29 B with profit before overhead, payroll, taxes, and interest of 2.81 B.Garmin Past Distributions to stockholders
About Garmin Valuation
We use absolute and relative valuation methodologies to arrive at the intrinsic value of Garmin. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Garmin based exclusively on its fundamental and basic technical indicators. By analyzing Garmin's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of Garmin's intrinsic value. As compared to an absolute model, our relative valuation model uses a comparative analysis of Garmin. We calculate exposure to Garmin's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Garmin's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 3 B | 1.5 B | |
| Pretax Profit Margin | 0.25 | 0.31 | |
| Operating Profit Margin | 0.24 | 0.30 | |
| Net Profit Margin | 0.23 | 0.26 | |
| Gross Profit Margin | 0.52 | 0.43 |
Garmin Quarterly Retained Earnings |
|
A single share of Garmin represents a small ownership stake in the entity. As a stockholder of Garmin, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
Garmin Dividends Analysis For Valuation
As of the 26th of November 2024, Dividends Paid is likely to drop to about 309.9 M. In addition to that, Dividend Yield is likely to drop to 0.02. At this time, Garmin's Retained Earnings are very stable compared to the past year. As of the 26th of November 2024, Retained Earnings Total Equity is likely to grow to about 5.7 B, while Earnings Yield is likely to drop 0.05.
| Last Reported | Projected for Next Year | ||
| Dividends Paid | 558.8 M | 309.9 M | |
| Dividend Yield | 0.03 | 0.02 | |
| Dividend Payout Ratio | 0.63 | 0.36 | |
| Dividend Paid And Capex Coverage Ratio | 0.98 | 0.93 |
There are various types of dividends Garmin can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Garmin shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Garmin directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Garmin pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Garmin by the value of the dividends paid out.
Garmin Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines.
| Common Stock Shares Outstanding | 192.1 M | |
| Quarterly Earnings Growth Y O Y | 0.545 | |
| Forward Price Earnings | 27.3973 |
Garmin Current Valuation Indicators
Garmin's valuation analysis is a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Garmin's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Garmin, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Garmin's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Garmin's worth.When determining whether Garmin offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Garmin's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Garmin Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Garmin Stock: Check out Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in Garmin. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in population. To learn how to invest in Garmin Stock, please use our How to Invest in Garmin guide.You can also try the Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Is Consumer Electronics space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Garmin. If investors know Garmin will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Garmin listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.545 | Dividend Share 3 | Earnings Share 7.87 | Revenue Per Share 31.044 | Quarterly Revenue Growth 0.241 |
The market value of Garmin is measured differently than its book value, which is the value of Garmin that is recorded on the company's balance sheet. Investors also form their own opinion of Garmin's value that differs from its market value or its book value, called intrinsic value, which is Garmin's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Garmin's market value can be influenced by many factors that don't directly affect Garmin's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Garmin's value and its price as these two are different measures arrived at by different means. Investors typically determine if Garmin is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Garmin's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.