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 due to several key financial ratios that suggest it may be priced higher than its intrinsic value. One significant metric is the Price-to-Earnings (PE) ratio, which stands at 26.32, substantially higher than the sector average of 15.61. A high PE ratio can indicate that a company is overvalued relative to its earnings potential. Investors typically prefer lower PE ratios, as they suggest better value for the price paid. Another concerning ratio is the Price-to-Book (PB) ratio of 5.08, compared to the sector average of 1.97. This ratio compares a company's market value to its book value. A high PB ratio may indicate that investors are paying a premium for the stock, which can be a sign of overvaluation. Additionally, Garmin's Dividend Yield is 1.49%, notably lower than the sector average of 2.56%. A lower dividend yield may signal to investors that the stock is not returning enough income relative to its price, often leading to questions about its attractiveness as an investment. While Garmin boasts a strong Net Profit Margin of 22.41% and Return on Assets of 14.66%, these strengths may not be enough to offset its high valuation metrics. Collectively, these ratios suggest that Garmin's stock price may be overstated compared to its industry peers. 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.