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 ratios indicate that the company may not justify its current market valuation compared to its sector peers. The Price-to-Earnings (PE) ratio for Garmin stands at 29.75, significantly higher than the sector average of 15.61. This ratio indicates how much investors are willing to pay for each dollar of earnings. A higher PE ratio can suggest that a stock is overvalued, particularly if earnings growth doesn't support such a premium. Garmin's Price-to-Book (PB) ratio is 5.08, again exceeding the sector average of 1.97. The PB ratio compares a company's market value to its book value, and a high ratio may imply that the stock is overpriced relative to its assets. The Dividend Yield for Garmin is 1.32%, which is lower than the sector average of 2.56%. This ratio reflects the annual dividend payment relative to the stock price. A lower yield may be less attractive to income-focused investors. Despite Garmin's strong Net Profit Margin of 22.41 and Return on Assets Ratio of 14.66, which are well above sector averages, the elevated PE, PB, and lower Dividend Yield emphasize concerns about its valuation. These factors collectively suggest that Garmin may be overvalued in the current market. 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.