Garrett Motion Stock Performance Snapshot

Garrett Motion (GTX) has attracted attention after recent trading, with the stock closing at $34.32 and showing double digit total returns over the past year and past 3 months.

For investors tracking performance, the company reports annual revenue of $3,691.0 and net income of $343.0, with both revenue and net income growth reported on an annual basis.

Garrett Motion's recent 1-day and 7-day share price returns of 1.66% and 2.26% add to a strong run, with a 90-day share price return of 102.36% alongside a 1-year total shareholder return of 248.69%. This suggests momentum has been building rather than fading.

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With Garrett Motion stock up sharply over the past year and trading only slightly below analyst price targets, a key question is whether its current valuation already reflects potential future growth or whether there is still a buying opportunity.

Most Popular Narrative: 3.8% Undervalued

Garrett Motion's most followed narrative points to a fair value of $35.67, slightly above the last close at $34.32. This frames the current debate around upside that may still be on the table.

Ongoing innovation and proof of concept awards in zero emission technologies (E-Powertrain, E-Cooling, and fuel cell compressors) and expansion in industrial/non-automotive end markets are positioning Garrett to capture higher-margin business opportunities and diversified growth, supporting both revenue and future margin expansion.

Want to see what is baked into that $35.67 fair value for Garrett Motion? The narrative leans on steady expansion in revenue, firmer margins, and a future profit multiple that differs from where the broader auto components group sits today. Curious how those moving parts add up to the current valuation gap? The full narrative sets out the numbers in detail.

Result: Fair Value of $35.67 (UNDERVALUED)

However, Garrett Motion's dependence on gasoline and diesel turbocharger demand, along with margin pressure from a less favorable sales mix, could challenge the current fair value narrative.

Another View on Garrett Motion Valuation

The fair value narrative around Garrett Motion centers on a $35.67 target, but the current P/E of 18.7x tells a slightly different story. It sits below the US Auto Components industry average of 20.4x, yet above a fair ratio of 17.5x, which points to some valuation tension rather than a clear bargain or clear excess. How much risk are you comfortable taking on that gap?

To see how that earnings multiple stacks up in more detail against peers and the fair ratio the market could move toward over time, take a closer look at the See what the numbers say about this price — find out in our valuation breakdown.

Next Steps

Given the mix of optimism and concern around Garrett Motion, it makes sense to pressure test the numbers yourself and decide where you stand. If you want a quick way to weigh both sides of the story, start with these 3 key rewards and 3 important warning signs.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.