GTX
Garrett Motion Inc.
$33.29
Stable Earnings Power
80%
P/Adj-EPS × Normalized Multiple
Strong
·
Conviction
Undervalued
Trading 50.2% below fair value
You pay
$33.29
Bear
$56.62
Fair
$66.91
Bull
$77.21
Bear
$56.62
+70.1%
$2.89 × 22x P/E
Fair
$66.91
+101.0%
$2.89 × 26x P/E
Bull
$77.21
+131.9%
$2.89 × 30x P/E
Key Value Driver
Normalized P/E multiple (26x base case)
Implied Market Multiple
11.5x
Summary
Our base-case estimate uses a valuation based on adjusted earnings per share and a normalized price-to-earnings multiple. We then blend that result with the average analyst price target of $34.00 from 8 analysts, using a 20% weight on analyst consensus. That produces an estimated intrinsic value of $66.91 per share.
Warnings
The company's reported profits differ from official accounting profits by 90%. Check what costs are being left out of the adjusted number.
Wall Street's average price target is $34.00 (from 8 analysts). Our estimate is 121% above the consensus -- consider that gap carefully.
Key Risks
- Growth DCF inappropriate — terminal value assumptions dominate
- EV/EBITDA misleading for regulated businesses where capex is mandated
- Regulatory risk is a fat tail not visible in normal multiples