Garrett Motion Inc.

NasdaqGS:GTX Stock Report

Market Cap: US$1.8b

Garrett Motion Valuation

Is GTX undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of GTX when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: GTX ($8.31) is trading below our estimate of fair value ($17.8)

Significantly Below Fair Value: GTX is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for GTX?

Key metric: As GTX is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for GTX. This is calculated by dividing GTX's market cap by their current earnings.
What is GTX's PE Ratio?
PE Ratio7.6x
EarningsUS$234.00m
Market CapUS$1.77b

Price to Earnings Ratio vs Peers

How does GTX's PE Ratio compare to its peers?

The above table shows the PE ratio for GTX vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average78.8x
VTSC.Y Vitesco Technologies Group
76.6x87.7%US$2.0b
ADNT Adient
91.2x33.7%US$1.6b
FOXF Fox Factory Holding
125.8x84.1%US$1.4b
PHIN PHINIA
21.6x22.6%US$2.3b
GTX Garrett Motion
7.6x12.8%US$1.8b

Price-To-Earnings vs Peers: GTX is good value based on its Price-To-Earnings Ratio (7.6x) compared to the peer average (78.8x).

Price to Earnings Ratio vs Industry

How does GTX's PE Ratio compare vs other companies in the US Auto Components Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
CDTI CDTi Advanced Materials
2.2xn/aUS$2.25m
No more companies available in this PE range
GTX 7.6xIndustry Avg. 19.8xNo. of Companies3PE01020304050+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: GTX is good value based on its Price-To-Earnings Ratio (7.6x) compared to the US Auto Components industry average (19.8x).

Price to Earnings Ratio vs Fair Ratio

What is GTX's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

GTX PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio7.6x
Fair PE Ratio14.5x

Price-To-Earnings vs Fair Ratio: GTX is good value based on its Price-To-Earnings Ratio (7.6x) compared to the estimated Fair Price-To-Earnings Ratio (14.5x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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