Equity research - garmin ltd: making products that are engineered on the inside for life on the outside

Abstract

We present our valuation of Garmin as of 31-Dec-2023, accompanied by the analysis behind our estimation of the share price and of its factors. This analysis follows the Discounted Cash Flow (DCF) model for valuation. Also, a multiples valuation is presented. Garmin is heavily exposed to consumer markets mainly in the Fitness and Outdoor segments, and to a lesser extent, in the Marine and Consumer Auto segments, but also to Original Equipment Manufacturers’ (OEMs) markets in the Aviation and Auto OEM segments. Due to the diversified product portfolio Garmin offers throughout these segments, the company is influenced by various trends and factors of each market. According to our findings, our recommendation is to Buy.