Is Garmin Ltd. (GRMN) Fairly Valued?
Garmin Ltd. valuation review using P/E, fair value, revenue growth, EPS growth, net margin, and TGMCharts chart exhibits as of August 19, 2026.
By TGMCharts Research · Data as of · Updated
Garmin Ltd.'s current valuation requires careful reconciliation across multiple metrics. At 30.48x trailing earnings, the market price exceeds the third-party analyst DCF (FMP) reference of $176, meaning the premium valuation must be evaluated against its underlying growth and profitability.
The core evidence centers on whether the business expansion supports the current multiple. A five-year revenue CAGR of 9.56% and a five-year EPS CAGR of 10.78% provide the primary operational context, while a robust net margin of 24.47% serves as the primary defense for the premium price-to-sales ratio of 7.46x.
- Garmin Ltd. closed at $296 on August 19, 2026.
- Trailing P/E is 30.48x and price-to-sales is 7.46x.
- Analyst DCF (FMP) is $176 with margin of safety at -40.33%.
- Five-year revenue CAGR is 9.56% and five-year EPS CAGR is 10.78%.
- Earnings yield is 3.28% and net margin is 24.47%.
Valuation Setup
The market price, model anchor, growth support, and profitability facts behind the valuation read.
Assessing the Premium Multiple and Underlying Fundamentals
When evaluating the investment profile of Garmin Ltd., the central analytical task is to determine whether the company's operational performance justifies its premium market multiple. At the close of trading on August 19, 2026, the stock was priced at $296, which translates to a trailing price-to-earnings ratio of 30.48x. This valuation represents a premium relative to the independent analyst-DCF (FMP) reference price of $176, resulting in a negative margin of safety of -40.33%.
Evaluating this setup requires looking beyond any single valuation metric. A comprehensive fundamental assessment must weigh the trailing price-to-earnings multiple, the third-party fair value estimate, the sales multiple, and the cash yield alongside historical growth rates and margin trends. If these underlying operational metrics remain robust, the current premium may be sustainable; conversely, any divergence between the stock's price and its fundamental support warrants a more cautious outlook.
Current compounder snapshot · GRMN
Live supporting context; not part of the article's frozen 2026-08-19 evidence snapshot.
- Score
- 24/100
- 10Y CAGR
- 9.9%
- Median YoY
- 10.6%
- YoY volatility
- σ 10.9pp· uneven
- Quarters ≥ 20%
- 7 of 40
- Negative quarters
- 5
- Valuation vs own 10Y history
- P/S 7.3x · 10Y median 4.6x · 99th percentile · as of Aug 26, 2026
How this score is computed
- Quarters at or above 20%: 7 of 40 → 7 of 40 pts
- Steadiness (typical swing 10.9pp) → 17.2 of 25 pts
- Pace (median 10.6% YoY) → 0 of 20 pts
- Latest quarter (11.4% YoY) → 0 of 15 pts
- Score: 24 of 100
Annualized revenue (TTM) · by quarter, last 40
Quarterly YoY revenue growth vs the 20% line
P/S multiple vs its 10Y median
Current Market Multiples and Owner Yield Dynamics
To establish what investors are currently paying for the business, we examine the relationship between the company's market price, its sales, and its earnings. The stock trades at a price-to-sales ratio of 7.46x, which corresponds to an earnings yield of 3.28%. This yield represents the cash flow generation available to shareholders relative to the current enterprise valuation, providing a useful counterweight to traditional earnings multiples.
GRMN P/E ratio Chart
The trailing earnings multiple is the main valuation exhibit because it connects the market price to reported earnings.
Latest P/E ratio: 30.48x as of August 19, 2026.
A P/E ratio of 30.48x has to be judged against the company's five-year EPS CAGR of 10.78%. If the multiple is high while EPS support is ordinary, the valuation thesis becomes more dependent on investor confidence than on fresh earnings power.
GRMN price-to-sales Chart
Price-to-sales gives a second valuation lens when margins and earnings can move around the cycle.
Latest price-to-sales ratio: 7.46x.
Price-to-sales at 7.46x is most useful beside net margin of 24.47%. A richer sales multiple is easier to defend when margin quality is durable rather than temporarily elevated.
Comparing Market Price to Independent DCF Benchmarks
The third-party analyst DCF (FMP) model establishes a reference value of $176 for the shares. With the market price trading at $296, the implied margin of safety is -40.33%, indicating that the current market price is elevated relative to this specific discounted cash flow framework. This benchmark should be treated as an external data point rather than an absolute valuation ceiling, and should be compared against the broader range of scenarios modeled on the TGMCharts platform.
The valuation at a glance
Each input on its own line: what the stock costs against earnings and sales, the model's fair value and how far price sits from it, and the growth and margins behind the business.
GRMN earnings yield Chart
Earnings yield reframes valuation from an owner's-yield perspective rather than a multiple perspective.
Latest earnings yield: 3.28%.
The earnings yield of 3.28% is the counterweight to the P/E ratio. If the yield is thin relative to the quality and growth profile, the valuation case needs more help from future compounding.
Evaluating Historical Top and Bottom Line Trajectories
For a premium valuation multiple to remain sustainable, it must be supported by consistent business expansion. Over the past five years, the company has generated a compound annual revenue growth rate of 9.56%, while compound annual earnings per share growth reached 10.78%. These metrics demonstrate that the company has successfully translated top-line expansion into bottom-line results, though the rate of growth must be weighed against the current trailing earnings multiple of 30.48x.
GRMN revenue
Revenue history tests whether the valuation is being supported by real business expansion.
Five-year revenue CAGR: 9.56%. This is endpoint-to-endpoint from the fiscal years shown — a depressed start year can inflate it, so read it against the recent bars.
Revenue growth is the business-expansion evidence behind the valuation read. A five-year revenue CAGR of 9.56% helps show how much of the valuation story is coming from company growth instead of only multiple expansion.
GRMN EPS
EPS history checks whether reported earnings are keeping pace with the market multiple.
Five-year EPS CAGR: 10.78%. This is endpoint-to-endpoint from the fiscal years shown — a depressed or negative start year can inflate it, so read it against the recent bars.
A five-year EPS CAGR of 10.78% is the clearest support figure for a P/E-based conclusion. If EPS growth slows while the multiple remains elevated, the article should become more cautious after refresh.
Analyzing Profitability Margins Against Sales Multiples
The strength of a company's profit margins determines how efficiently revenue is converted into shareholder value. The company currently maintains a net margin of 24.47%, which helps support its price-to-sales ratio of 7.46x. High-margin operations generally support higher sales multiples, but if margins normalize or contract, the current valuation structure could face downward pressure.
GRMN net margin
Net margin shows whether the company has enough profitability quality to support its valuation.
Net margin (TTM): 24.47%. The bars below are annual fiscal years.
Net margin of 24.47% is a quality signal, not a valuation verdict by itself. It matters because a premium multiple is more defensible when margins are structurally strong and less defensible when margins are peaking.
Weighing the Bull and Bear Structural Arguments
The optimistic case for the current valuation relies on the continuation of the company's historical growth and high profitability, with the five-year revenue CAGR of 9.56% and net margin of 24.47% serving as key pillars. Conversely, the cautious perspective highlights that the current trailing P/E of 30.48x leaves little room for operational missteps, particularly given the negative margin of safety of -40.33% relative to the independent DCF reference.
Bull and bear case
Valuation support
- Five-year revenue CAGR of 9.56% and five-year EPS CAGR of 10.78% support the business case.
- Net margin of 24.47% is the quality check behind the multiple.
Valuation pressure
- A P/E ratio of 30.48x can become demanding if EPS growth slows.
- The analyst-DCF (FMP) margin of safety at -40.33% should change the valuation read if it deteriorates after refresh.
Identifying Key Operational and Valuation Falsifiers
Several monitorable developments could alter this valuation assessment. A significant shift in the market price toward the analyst-DCF (FMP) benchmark of $176 would compress the valuation premium, while a deceleration in the five-year EPS growth rate below 10.78% would weaken the fundamental support for the multiple. Additionally, any structural decline in the net margin from its current level of 24.47% would require a reassessment of the stock's fair value.
Synthesis of the Multi-Metric Fundamental Outlook
Ultimately, the valuation of Garmin Ltd. hinges on the alignment of its market multiples, independent valuation models, historical growth, and profitability. The current premium multiple requires sustained execution across both revenue expansion and margin preservation. This analysis is based on verified financial data and does not constitute personalized financial advice or a specific investment recommendation.
FAQ
Is GRMN fairly valued?
Garmin Ltd. trades at 30.48x trailing earnings with an analyst-DCF (FMP) margin of safety of -40.33%. The cleanest read comes from comparing that valuation to five-year revenue CAGR of 9.56% and five-year EPS CAGR of 10.78%.
What valuation metric matters most for GRMN?
This article anchors on P/E, fair value, margin of safety, price-to-sales, earnings yield, revenue growth, and EPS growth. No single metric is treated as a recommendation.
How often should this GRMN valuation view refresh?
We refresh this note after each daily market close, so the price, fair value, and every figure stay current. Numbers here are as of August 19, 2026.
What would change our mind
- Any revision to the independent analyst DCF (FMP) benchmark of $176.
- A deceleration in the five-year EPS compound growth rate below the current 10.78% threshold.
- Contraction in the net margin from its current level of 24.47%.
The bottom line
Garmin Ltd. valuation research note from TGMCharts Research, grounded in precomputed fundamentals, chart exhibits, and a frozen claim ledger.
Read next: Garmin Ltd. (GRMN) Fundamental CheckupFundamental checkup on Garmin Ltd. — from the same data-checked research desk.How we checked this researchShowHide
Data snapshot · By TGMCharts Research.
Every number in this note comes from data we compute and store ourselves from the company's reported figures, plus verbatim excerpts from its SEC filings. When a value isn't available we say so — we never fill gaps with estimates.
Latest filing excerpt
10-Q · filed 2026-04-29 · period 2026-03-28 · SEC EDGAR source
- “Of the $ 123,373 of deferred revenue as of March 28, 2026, the Company expects to recognize approximately 87% ratably over a total period of three years or less.”
- “Revenue In order to further depict how the nature, amount, timing and uncertainty of the Company's revenue and cash flows are affected by economic factors, Garmin disaggregates revenue (or "net sales") by geographic region, major product category, and pattern of recognition.”
- “Disaggregated revenue by geographic region (Americas, EMEA, and APAC) is presented in Note 11 - Segment Information and Geographic Data.”
- “Note 11 also contains disaggregated revenue information of the five major product categories identified by the Company (fitness, outdoor, aviation, marine, and auto OEM), which also represent the Company's operating segments.”
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Every numeric or dated claim in this note was checked against our stored company data before publishing — each figure below links to the page it comes from.