Assessing Garrett Motion (GTX) Valuation After Strong One-Year Returns and Industry Momentum

Garrett Motion (GTX) stock has caught the attention of investors recently, as its performance reflects ongoing shifts in the automotive supply sector. The stock’s returns over the past year have outpaced many peers and prompted fresh questions on valuation.

See our latest analysis for Garrett Motion.

Momentum has been strong for Garrett Motion, with this year’s impressive 44.9% share price return turning heads even as the stock cooled slightly over the past week. Long-term shareholders are feeling rewarded too. The one-year total shareholder return sits at 60.1%, and the five-year figure is a remarkable 352.7%, suggesting optimism is still building.

If you’re interested in what’s powering other auto stocks, take the next step and browse the latest industry movers and leaders in our See the full list for free..

Given the stock’s rapid climb and impressive returns, the central question now is whether Garrett Motion is still trading at a bargain, or if the market already reflects its future growth prospects and leaves little room for upside.

Most Popular Narrative: 24.8% Undervalued

Garrett Motion’s widely followed narrative sees the fair value at $17.17 per share, compared to the last close of $12.91. Bulls and bears alike are watching whether this gap holds as estimates and financial assumptions shift.

Momentum in newly launched large turbo products for genset and marine applications, particularly serving the rapidly expanding data center backup power market, provides access to a new, fast-growing revenue stream that can contribute hundreds of millions in annual sales over the next several years.

Read the complete narrative.

Want to know what fuels that big valuation gap? Hint: bold bets on new technology, ambitious profit assumptions, and a future financial multiple most companies dream of. Get the full story behind the numbers now.

Result: Fair Value of $17.17 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, heavy reliance on gasoline turbochargers and slow growth in new electrified segments could quickly change Garrett Motion's outlook if industry trends shift.

Find out about the key risks to this Garrett Motion narrative.

Build Your Own Garrett Motion Narrative

If this story doesn’t match your outlook or you prefer digging into the numbers yourself, you’re invited to craft your own narrative in just a few minutes. Do it your way

A great starting point for your Garrett Motion research is our analysis highlighting 5 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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