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 concerns about its current market valuation relative to key financial metrics. One significant ratio is the Price-to-Earnings (PE) ratio, which stands at 28.22, compared to the sector average of 15.61. A high PE ratio suggests that investors are willing to pay more for each dollar of earnings, which may indicate overvaluation, especially when the sector average is substantially lower. Additionally, Garmin’s Price-to-Book (PB) ratio is 5.08, while the sector average is 1.97. This means that Garmin's market price is more than five times its book value, suggesting that investors are pricing the stock at a premium compared to its actual net asset value. Another area of concern is the Dividend Yield, which is at 1.39%, while the sector average stands at 2.56%. A lower dividend yield may indicate that investors are not receiving a substantial return on their investment relative to other companies in the sector, which could be a deterrent for income-focused investors. While Garmin excels in metrics like net profit margin and return on equity, the higher valuation ratios compared to the sector average raise questions about the sustainability of its current price levels. 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.