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. Several key financial metrics indicate that Garmin may be priced higher than its fundamental performance warrants. One notable ratio is the Price-to-Earnings (PE) Ratio, which stands at 28.16, significantly higher than the sector average of 15.61. A higher PE ratio suggests that investors are willing to pay more for each dollar of earnings, which can indicate overvaluation when compared to peers. Additionally, Garmin's Price-to-Book (PB) Ratio is 5.08, compared to the sector's average of 1.97. This ratio indicates how much investors are willing to pay for each dollar of net assets. A higher PB ratio could imply that the market has high expectations for future growth, which may not be sustainable. The Dividend Yield for Garmin is 1.39, while the sector average is 2.56. This lower yield suggests that Garmin returns less cash to its shareholders in the form of dividends compared to its peers, which may deter income-focused investors. In terms of return metrics, Garmin's Return on Assets (ROA) Ratio stands at 14.66, compared to the sector's -0.10. Although Garmin performs well here, the relatively high valuation combined with lower dividend yield raises questions about its overall investment appeal. In summary, Garmin's elevated PE and PB ratios, along with a lower dividend yield, suggest potential overvaluation. 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.