Garrett Motion Inc. (spun out of Honeywell) designs, manufactures and sells highly engineered turbocharger and electric boosting technologies for light and commercial vehicle original equipment manufacturers and the aftermarket.
GTX Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for GTX, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Garrett Motion Inc ranked in the 17th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. As for the metrics that stood out in our discounted cash flow analysis of Garrett Motion Inc, consider:
The stock's equity weight, or the proportion of capital from equity relative to debt, is 16. Its equity weight surpasses that of merely 12.06% of free cash flow generating stocks in the Consumer Cyclical sector.
The company's compound free cash flow growth rate over the past 0.99 years comes in at -0.5%; that's greater than only 2.06% of US stocks we're applying DCF forecasting to.
Garrett Motion Inc's weighted average cost of capital (WACC) is 5%; for context, that number is higher than only 0.43% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Garrett Motion Inc? See ANF, BBBY, FRG, LVS, and CARS.