Generac Holdings Valuation

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

Valuation Score

2/6

Valuation Score 2/6

  • 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 GNRC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: GNRC ($156.49) is trading below our estimate of fair value ($236.33)

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


Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

GNRC key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue2.7x
Enterprise Value/EBITDA18.9x
PEG Ratio1.9x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for GNRC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average18.1x
AYI Acuity Brands
20x8.0%US$7.8b
NVT nVent Electric
21.4x0.5%US$12.3b
NXT Nextracker
22.4x13.9%US$7.0b
ATKR Atkore
8.5x0.3%US$5.3b
GNRC Generac Holdings
42.5x22.6%US$9.5b

Price-To-Earnings vs Peers: GNRC is expensive based on its Price-To-Earnings Ratio (42.5x) compared to the peer average (18.1x).


Price to Earnings Ratio vs Industry

How does GNRC's PE Ratio compare vs other companies in the US Electrical Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a21.4%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a21.4%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: GNRC is expensive based on its Price-To-Earnings Ratio (42.5x) compared to the US Electrical industry average (20.8x).


Price to Earnings Ratio vs Fair Ratio

What is GNRC'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.

GNRC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio42.5x
Fair PE Ratio32.7x

Price-To-Earnings vs Fair Ratio: GNRC is expensive based on its Price-To-Earnings Ratio (42.5x) compared to the estimated Fair Price-To-Earnings Ratio (32.6x).


Analyst Price Targets

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

The above table shows the analyst GNRC forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$156.49
US$143.43
-8.3%
15.9%US$177.00US$78.00n/a23
Jul ’25US$133.16
US$141.83
+6.5%
15.3%US$175.00US$78.00n/a23
Jun ’25US$147.21
US$141.08
-4.2%
15.3%US$175.00US$78.00n/a23
May ’25US$127.63
US$139.12
+9.0%
14.5%US$175.00US$78.00n/a24
Apr ’25US$127.41
US$136.60
+7.2%
15.7%US$175.00US$78.00n/a25
Mar ’25US$114.18
US$136.30
+19.4%
15.6%US$175.00US$78.00n/a25
Feb ’25US$115.33
US$136.86
+18.7%
18.7%US$175.00US$78.00n/a25
Jan ’25US$129.24
US$135.56
+4.9%
18.6%US$175.00US$78.00n/a26
Dec ’24US$122.30
US$135.50
+10.8%
18.9%US$175.00US$78.00n/a25
Nov ’24US$96.13
US$134.19
+39.6%
21.0%US$175.00US$76.00n/a24
Oct ’24US$108.96
US$138.20
+26.8%
20.2%US$179.00US$75.00n/a23
Sep ’24US$118.94
US$139.30
+17.1%
20.5%US$179.00US$75.00n/a23
Aug ’24US$153.38
US$149.09
-2.8%
18.2%US$189.00US$85.00n/a22
Jul ’24US$149.13
US$142.86
-4.2%
17.5%US$185.00US$85.00US$133.1621
Jun ’24US$113.56
US$139.77
+23.1%
20.2%US$185.00US$75.00US$147.2122
May ’24US$102.52
US$138.96
+35.5%
21.2%US$185.00US$75.00US$127.6323
Apr ’24US$108.01
US$140.61
+30.2%
20.7%US$185.00US$75.00US$127.4123
Mar ’24US$118.24
US$153.73
+30.0%
36.8%US$380.00US$75.00US$114.1822
Feb ’24US$126.54
US$147.95
+16.9%
40.4%US$380.00US$75.00US$115.3322
Jan ’24US$100.66
US$147.82
+46.8%
40.8%US$380.00US$75.00US$129.2422
Dec ’23US$103.09
US$154.19
+49.6%
38.7%US$380.00US$75.00US$122.3021
Nov ’23US$114.70
US$170.85
+49.0%
38.1%US$380.00US$75.00US$96.1320
Oct ’23US$178.14
US$332.33
+86.6%
20.6%US$450.00US$190.00US$108.9621
Sep ’23US$233.01
US$348.74
+49.7%
15.9%US$450.00US$256.00US$118.9419
Aug ’23US$264.99
US$369.85
+39.6%
19.5%US$485.00US$250.00US$153.3820
Jul ’23US$217.51
US$379.40
+74.4%
20.4%US$561.00US$275.00US$149.1320

Analyst Forecast: Target price is lower than the current share price.


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