GARMIN LTD (GRMN)

Search, Detection, Navigation, Guidance, Aeronautical Sys

Latest Price

$280.38

TTM P/E

31.29

Normalized P/E

40.41

Div Yield

Book Value

48.12

P/B Ratio

5.83

Valuation metrics

EPS: $8.59

Book value / share: $46.58

Formula: √(22.5 × EPS × BVPS)

Graham Number

$94.88

66% downside

Norm. op. income: $1.1B (median of 7yr)

Tax rate: 10%

Discount rate: 10%

Growth assumption: zero (EPV is a no-growth value)

Earnings Power Value

$62.75

78% downside

Base FCF: $1.2B (median of recent 5yr)

Growth: 7%/yr (median YOY, capped at 25%)

Discount rate: 10%

Terminal growth: 3%

Projection horizon: 10 years

DCF Fair Value

$136.72

51% downside

EPS: $8.59

Target P/E: 40×

Formula: EPS × P/E

P/E Fair Value

$343.60

+23% upside