Home » Story links » MagicDiligence's story links

Garmin: Growth at a Reasonable Price?

By MagicDiligence on Tue, 2008-05-13 07:05
(via www.magicdiligence.com)

Garmin is the dominant player in the fast growing GPS market. The company has delivered nearly 50% annual earnings growth since 2003, and is expected to grow at 17% per year going forward. With it's current 11 P/E, is Garmin a textbook example of growth at a reasonable price?

xmonkeydr on Mon, 2008-05-19 22:28
Title: I think Garmin's P/E is due

I think Garmin's P/E is due to their being a big player in a market that is attracting much bigger players. I love my Garmin handheld for hiking but their software is both expensive (maps) and somewhat user unfriendly. Google maps automatically presents traffic data on my smart phone and such a service from Garmin would require buying both hardware (an XM antenna) and a subscription to XM. To maintain their lead in the vehicle navigation market I think they need to both incorporate automatic updates to their devices and real time traffic data via a cell subscription a la Amazon's Kindle.