GRMN is now overvalued and could go down -28%

Based on our analysis, Garmin has received an overvalued rating of 2 out of 5 stars from Cashu, indicating potential concerns about its current stock price relative to its financial performance. One key metric is the Price-to-Earnings (PE) Ratio, which stands at 28.00, significantly higher than the sector average of 17.12. A high PE ratio suggests that investors are paying more for each dollar of earnings compared to the sector, which could indicate overvaluation. Additionally, Garmin's Price-to-Book (PB) Ratio of 5.08 also exceeds the sector average of 2.04, highlighting a premium on the company’s stock compared to its book value. This may raise questions about whether Garmin's stock price is justified based on its assets. Garmin's Dividend Yield is another area of interest. It stands at 1.45%, slightly below the sector average of 1.48%. While a competitive dividend yield can attract income-focused investors, Garmin's lower yield may not offer the same appeal as its peers. While Garmin boasts impressive profitability and efficiency metrics, including a Net Profit Margin of 22.41% and a Return on Assets Ratio of 14.66%, the elevated valuation ratios suggest that the stock may not be as attractive as it appears. These factors collectively indicate that Garmin may be overvalued relative to its peers, warranting caution for potential investors. This is not a comprehensive overview of our valuation, and should not be viewed as financial advice. Always do your own research before considering an investment.