Using the industry peer median P/E multiple (trailing + forward), Garmin Ltd. (GRMN) has a fair value of $292.60 based on 6 comparable companies in the Hardware, Equipment & Parts industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| Garmin Ltd.GRMN | 45,852 | 27.6x | 33.5x |
| Monolithic Power Systems, Inc.MPWR | 53,106 | 84.8x | 50.3x |
| Keysight Technologies, Inc.KEYS | 48,479 | 57.9x | 39.9x |
| Celestica Inc.CLS | 31,833 | 38.0x | 72.6x |
| Cognizant Technology Solutions CorporationCTSH | 29,273 | 13.3x | 11.7x |
| Teledyne Technologies IncorporatedTDY | 28,423 | 32.5x | 31.6x |
| Fair Isaac CorporationFICO | 24,747 | 39.3x | 25.1x |
| Industry Median | 38.6x | 35.8x | |
| (*) Profit after tax | 1,664 | 1,370 | |
| Equity Value | 64,300 | 49,002 | |
| (/) Outstanding shares | 194 | 194 | |
| Fair Price | $332 | $253 | |
This P/E relative valuation uses the industry peer median Price-to-Earnings ratio to estimate fair value. Both trailing (last 12 months) and forward (next fiscal year analyst estimates) P/E multiples are computed independently.
The industry median trailing P/E is applied to the company's TTM net income, and the forward P/E to analyst-estimated net income. Each produces an equity value divided by shares outstanding to yield a fair price per share. The selected fair value is the average of the trailing and forward legs.