GTES Valuation

Gates Industrial Corporation PLC

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24.590

+0.14(0.573%)1D

Overview
Forecast
Valuation
Earnings

GTES Relative Valuation

GTES's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, GTES is overvalued; if below, it's undervalued.

Historical Valuation

Gates Industrial Corporation PLC (GTES) is now in the Fair zone, suggesting that its current forward PE ratio of 15.04 is considered Fairly compared with the five-year average of 12.10. The fair price of Gates Industrial Corporation PLC (GTES) is between 21.08 to 26.77 according to relative valuation methord.

Relative Value

Fair Zone

21.08-26.77

Current Price：24.59

Fair

15.04

Trailing

Forward

10.18

EV/EBITDA

Gates Industrial Corporation PLC. (GTES) has a current EV/EBITDA of 10.18. The 5-year average EV/EBITDA is 9.15. The thresholds are as follows: Strongly Undervalued below 6.71, Undervalued between 6.71 and 7.93, Fairly Valued between 10.37 and 7.93, Overvalued between 10.37 and 11.59, and Strongly Overvalued above 11.59. The current Forward EV/EBITDA of 10.18 falls within the Historic Trend Line -Fairly Valued range.

11.65

EV/EBIT

Gates Industrial Corporation PLC. (GTES) has a current EV/EBIT of 11.65. The 5-year average EV/EBIT is 13.50. The thresholds are as follows: Strongly Undervalued below 8.22, Undervalued between 8.22 and 10.86, Fairly Valued between 16.14 and 10.86, Overvalued between 16.14 and 18.78, and Strongly Overvalued above 18.78. The current Forward EV/EBIT of 11.65 falls within the Historic Trend Line -Fairly Valued range.

1.75

Gates Industrial Corporation PLC. (GTES) has a current PS of 1.75. The 5-year average PS is 1.21. The thresholds are as follows: Strongly Undervalued below 0.70, Undervalued between 0.70 and 0.95, Fairly Valued between 1.46 and 0.95, Overvalued between 1.46 and 1.72, and Strongly Overvalued above 1.72. The current Forward PS of 1.75 falls within the Strongly Overvalued range.

13.18

P/OCF

Gates Industrial Corporation PLC. (GTES) has a current P/OCF of 13.18. The 5-year average P/OCF is 10.91. The thresholds are as follows: Strongly Undervalued below 0.07, Undervalued between 0.07 and 5.49, Fairly Valued between 16.33 and 5.49, Overvalued between 16.33 and 21.75, and Strongly Overvalued above 21.75. The current Forward P/OCF of 13.18 falls within the Historic Trend Line -Fairly Valued range.

17.29

P/FCF

Gates Industrial Corporation PLC. (GTES) has a current P/FCF of 17.29. The 5-year average P/FCF is 13.51. The thresholds are as follows: Strongly Undervalued below 4.30, Undervalued between 4.30 and 8.91, Fairly Valued between 18.12 and 8.91, Overvalued between 18.12 and 22.72, and Strongly Overvalued above 22.72. The current Forward P/FCF of 17.29 falls within the Historic Trend Line -Fairly Valued range.

Gates Industrial Corporation PLC (GTES) has a current Price-to-Book (P/B) ratio of 1.90. Compared to its 3-year average P/B ratio of 1.33 , the current P/B ratio is approximately 42.45% higher. Relative to its 5-year average P/B ratio of 1.40, the current P/B ratio is about 36.04% higher. Gates Industrial Corporation PLC (GTES) has a Forward Free Cash Flow (FCF) yield of approximately 5.40%. Compared to its 3-year average FCF yield of 8.48%, the current FCF yield is approximately -36.38% lower. Relative to its 5-year average FCF yield of 7.49% , the current FCF yield is about -27.92% lower.

1.90

P/B

Median3y

1.33

Median5y

1.40

5.40

FCF Yield

Median3y

8.48

Median5y

7.49

Competitors Valuation Multiple

The average P/S ratio for GTES's competitors is 2.25, providing a benchmark for relative valuation. Gates Industrial Corporation PLC Corp (GTES) exhibits a P/S ratio of 1.75, which is -22.21% above the industry average. Given its robust revenue growth of -0.20%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

GTES.N

Gates Industrial Corporation PLC

Performance Decomposition

Market capitalization of GTES increased by 34.64% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 20.17 to 30.94.

The secondary factor is the Revenue Growth, contributed -0.20%to the performance.

Overall, the performance of GTES in the past 1 year is driven by P/E Change. Which is more unsustainable.

-0.20%

885.50M → 883.70M

Revenue Growth

-18.52%

8.80 → 7.17

Margin Expansion

53.36%

20.17 → 30.94

P/E Change

34.64%