TRMB Valuation

Trimble Inc

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80.270

+0.07(0.087%)1D

Overview
Forecast
Valuation
Earnings

TRMB Relative Valuation

TRMB'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, TRMB is overvalued; if below, it's undervalued.

Historical Valuation

Trimble Inc (TRMB) is now in the Fair zone, suggesting that its current forward PE ratio of 25.83 is considered Fairly compared with the five-year average of 23.52. The fair price of Trimble Inc (TRMB) is between 79.93 to 102.19 according to relative valuation methord.

Relative Value

Fair Zone

79.93-102.19

Current Price：80.20

Fair

25.83

Trailing

Forward

20.14

EV/EBITDA

Trimble Inc. (TRMB) has a current EV/EBITDA of 20.14. The 5-year average EV/EBITDA is 18.39. The thresholds are as follows: Strongly Undervalued below 11.28, Undervalued between 11.28 and 14.84, Fairly Valued between 21.94 and 14.84, Overvalued between 21.94 and 25.50, and Strongly Overvalued above 25.50. The current Forward EV/EBITDA of 20.14 falls within the Historic Trend Line -Fairly Valued range.

21.14

EV/EBIT

Trimble Inc. (TRMB) has a current EV/EBIT of 21.14. The 5-year average EV/EBIT is 19.67. The thresholds are as follows: Strongly Undervalued below 12.33, Undervalued between 12.33 and 16.00, Fairly Valued between 23.34 and 16.00, Overvalued between 23.34 and 27.01, and Strongly Overvalued above 27.01. The current Forward EV/EBIT of 21.14 falls within the Historic Trend Line -Fairly Valued range.

5.42

Trimble Inc. (TRMB) has a current PS of 5.42. The 5-year average PS is 4.33. The thresholds are as follows: Strongly Undervalued below 2.58, Undervalued between 2.58 and 3.46, Fairly Valued between 5.20 and 3.46, Overvalued between 5.20 and 6.08, and Strongly Overvalued above 6.08. The current Forward PS of 5.42 falls within the Overvalued range.

25.22

P/OCF

Trimble Inc. (TRMB) has a current P/OCF of 25.22. The 5-year average P/OCF is 25.75. The thresholds are as follows: Strongly Undervalued below 11.57, Undervalued between 11.57 and 18.66, Fairly Valued between 32.84 and 18.66, Overvalued between 32.84 and 39.93, and Strongly Overvalued above 39.93. The current Forward P/OCF of 25.22 falls within the Historic Trend Line -Fairly Valued range.

26.91

P/FCF

Trimble Inc. (TRMB) has a current P/FCF of 26.91. The 5-year average P/FCF is 28.25. The thresholds are as follows: Strongly Undervalued below 11.97, Undervalued between 11.97 and 20.11, Fairly Valued between 36.39 and 20.11, Overvalued between 36.39 and 44.53, and Strongly Overvalued above 44.53. The current Forward P/FCF of 26.91 falls within the Historic Trend Line -Fairly Valued range.

Trimble Inc (TRMB) has a current Price-to-Book (P/B) ratio of 3.39. Compared to its 3-year average P/B ratio of 3.06 , the current P/B ratio is approximately 10.87% higher. Relative to its 5-year average P/B ratio of 3.78, the current P/B ratio is about -10.24% higher. Trimble Inc (TRMB) has a Forward Free Cash Flow (FCF) yield of approximately 1.46%. Compared to its 3-year average FCF yield of 3.37%, the current FCF yield is approximately -56.75% lower. Relative to its 5-year average FCF yield of 3.46% , the current FCF yield is about -57.87% lower.

3.39

P/B

Median3y

3.06

Median5y

3.78

1.46

FCF Yield

Median3y

3.37

Median5y

3.46

Competitors Valuation Multiple

The average P/S ratio for TRMB's competitors is 7.01, providing a benchmark for relative valuation. Trimble Inc Corp (TRMB) exhibits a P/S ratio of 5.42, which is -22.60% above the industry average. Given its robust revenue growth of 0.56%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of TRMB increased by 41.59% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 29.13 to 68.25.

The secondary factor is the Revenue Growth, contributed 0.56%to the performance.

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

0.56%

870.80M → 875.70M

Revenue Growth

-93.26%

151.17 → 10.19

Margin Expansion

134.29%

29.13 → 68.25

P/E Change

41.59%