Gates Industrial Corp plc (GTES)

General Industrial Machinery & Equipment

Latest Price

$23.83

TTM P/E

16.66

Normalized P/E

25.03

TTM Div Yield

Fwd Div Yield

Book Value

14.06

P/B Ratio

1.70

Valuation metrics

EPS: $0.96

Book value / share: $13.15

Formula: √(22.5 × EPS × BVPS)

Graham Number

$16.85

29% downside

Norm. op. income: $463M (median of 5yr)

Tax rate: 14%

Discount rate: 10%

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

Earnings Power Value

$10.05

58% downside

Base FCF: $297M (median of recent 5yr)

Growth: 5%/yr (median YOY, capped at 25%)

Discount rate: 10%

Terminal growth: 3%

Projection horizon: 10 years

DCF Fair Value

$14.34

40% downside

EPS: $0.96

Target P/E: 25×

Formula: EPS × P/E

P/E Fair Value

$24.00

+1% upside