Garmin Ltd. designs, develops, manufactures, markets, and distributes a diverse range of GPS-enabled products and navigation, communications, sensor-based, and information products and services worldwide. It offers running; cycling products; smartwatch devices; scales and monitors; and sports timing and performance analysis; Garmin Connect and Garmin Connect Mobile, which are web and mobile platforms where users can track and analyze their fitness, activities and workouts, and wellness data; and Connect IQ, which enables third parties to create applications that run on Garmin devices.
Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS. Shaded region = analyst consensus for the current and next fiscal year (8 analysts).
| Parameter | BaseValue |
|---|---|
Initial Cash Flow | |
| Growth Rate (Yr 1-5) | % |
| Growth Rate (Yr 6-10) | % |
| Terminal Growth Rate | % |
| Discount Rate | % |
Base Case $201.84 Implied EV: $36.49B |
What growth rate is the market pricing in at $294?
The market implies +14.3% Owner Earnings growth, below historical trends — potential opportunity.
Standard FCF implies a more demanding +17.1%, reflecting heavy growth investment expected to generate future returns.
Wide moat with strength across all dimensions. Reinvestment Efficiency is the standout factor.
"Market is optimistic — be cautious and ensure you have a margin of safety"
Price significantly exceeds estimated intrinsic value while market sentiment is euphoric — elevated risk
