Gates Industrial Corp plc (GTES)

General Industrial Machinery & Equipment

Latest Price

$26.04

TTM P/E

18.60

Normalized P/E

28.86

Div Yield

Book Value

P/B Ratio

Valuation metrics

EPS: $0.96

Book value / share: $13.15

Formula: √(22.5 × EPS × BVPS)

Graham Number

$16.85

34% 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

61% 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

44% downside

EPS: $0.96

Target P/E: 28×

Formula: EPS × P/E

P/E Fair Value

$26.88

+5% upside