DCF Tool

GRMN

Garmin Ltd – Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
Garmin, formerly known as ProNav, is an American multinational technology company founded in 1989, with headquarters in Olathe, Kansas. The company specializes in GPS technology for automotive, aviation, marine, outdoor, and sport activities. Garmin Ltd. is incorporated in Switzerland, and its principal subsidiaries are located in the United States, Taiwan and the United Kingdom. Garmin is a registered trademark of Garmin Ltd.
Analysis Results
Intrinsic Value $141.65
Latest Price $80.31
Relative Value 43% undervalued
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Cash Flow (Billions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 13.3%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 8.6%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 13.3%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2022 1.34 1.23
2023 1.52 1.29
2024 1.72 1.34
2025 1.95 1.4
2026 2.21 1.46
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 33.9 billion. This corresponds to a present value of 20.6 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 6.72 billion. Adding in the terminal value gives a total present value of 27.3 billion.

There are presently 193.0 million outstanding shares, so the intrinsic value per share is 141.65.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 4,261,772,000
Current Cash 1,846,038,000
Current Liabilities 1,448,148,000
Current Debt 0
Non-Cash Working Capital (NCWC) 967,586,000
Change in NCWC 308,536,000
EBIT 1,218,620,000
Tax Provision 124,596,000
Depreciation and Amortization 154,818,000
Capital Expenditure -309,587,000
Unlevered Free Cash Flow 1,246,570,227
Current Assets 3,669,351,000
Current Cash 1,846,084,000
Current Liabilities 1,164,217,000
Current Debt 0
Non-Cash Working Capital (NCWC) 659,050,000
Change in NCWC 41,163,000
EBIT 1,054,240,000
Tax Provision 111,086,000
Depreciation and Amortization 126,715,000
Capital Expenditure -187,466,000
Unlevered Free Cash Flow 928,516,198
Current Assets 3,057,850,000
Current Cash 1,404,030,000
Current Liabilities 1,035,933,000
Current Debt 0
Non-Cash Working Capital (NCWC) 617,887,000
Change in NCWC 258,553,000
EBIT 945,586,000
Tax Provision 34,736,000
Depreciation and Amortization 106,175,000
Capital Expenditure -120,408,000
Unlevered Free Cash Flow 1,156,634,987
Current Assets 2,665,368,000
Current Cash 1,384,721,000
Current Liabilities 921,313,000
Current Debt 0
Non-Cash Working Capital (NCWC) 359,334,000
Change in NCWC -122,760,000
EBIT 778,343,000
Tax Provision 129,167,000
Depreciation and Amortization 96,194,000
Capital Expenditure -160,355,000
Unlevered Free Cash Flow 469,300,412
Current Assets 2,363,925,000
Current Cash 1,053,175,000
Current Liabilities 828,656,000
Current Debt 0
Non-Cash Working Capital (NCWC) 482,094,000
Change in NCWC 115,648,000
EBIT 668,860,000
Tax Provision -12,661,000
Depreciation and Amortization 86,252,000
Capital Expenditure -151,928,000
Unlevered Free Cash Flow 718,832,000
Current Assets 2,263,016,000
Current Cash 1,113,835,000
Current Liabilities 782,735,000
Current Debt 0
Non-Cash Working Capital (NCWC) 366,446,000
Change in NCWC 69,588,000
EBIT 623,909,000
Tax Provision 118,856,000
Depreciation and Amortization 86,340,000
Capital Expenditure -96,675,000
Unlevered Free Cash Flow 565,393,441
Current Assets 2,211,087,000
Current Cash 1,048,231,000
Current Liabilities 865,998,000
Current Debt 0
Non-Cash Working Capital (NCWC) 296,858,000
Change in NCWC 183,400,000
EBIT 549,581,000
Tax Provision 110,960,000
Depreciation and Amortization 78,360,000
Capital Expenditure -84,481,000
Unlevered Free Cash Flow 619,344,299
Current Assets 2,510,976,000
Current Cash 1,364,257,000
Current Liabilities 1,033,261,000
Current Debt 0
Non-Cash Working Capital (NCWC) 113,458,000
Change in NCWC -247,863,000
EBIT 690,626,000
Tax Provision 359,534,000
Depreciation and Amortization 77,015,000
Capital Expenditure -78,059,000
Unlevered Free Cash Flow 98,637,488
Current Assets 2,595,636,000
Current Cash 1,329,011,000
Current Liabilities 905,304,000
Current Debt 0
Non-Cash Working Capital (NCWC) 361,321,000
Change in NCWC 118,490,000
EBIT 574,032,000
Tax Provision 41,146,000
Depreciation and Amortization 78,804,000
Capital Expenditure -57,205,000
Unlevered Free Cash Flow 677,981,712
Current Assets 2,536,120,000
Current Cash 1,384,263,000
Current Liabilities 909,026,000
Current Debt 0
Non-Cash Working Capital (NCWC) 242,831,000
Change in NCWC -56,861,000
EBIT 604,160,000
Tax Provision 82,125,000
Depreciation and Amortization 90,467,000
Capital Expenditure -45,228,000
Unlevered Free Cash Flow 513,091,377

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