Latest Ratios: P/E Ratio 21.2x · EV/EBITDA 12.5x · ROE N/A. (2016–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $6.1B | $3.5B | $2.0B | $1.6B | $496M | $560M | $337M | $759M | $918M | — | — |
| Enterprise Value | $7.4B | $4.9B | $3.4B | $3.0B | $1.4B | $1.7B | $1.3B | $2.0B | $2.3B | — | — |
| P/E Ratio → | 21.22 | 11.47 | 7.17 | — | 1.27 | 5.15 | 4.22 | 2.42 | 0.78 | — | — |
| P/S Ratio | 1.69 | 0.99 | 0.58 | 0.41 | 0.14 | 0.15 | 0.11 | 0.23 | 0.27 | — | — |
| P/B Ratio | — | — | — | — | — | — | — | — | — | — | — |
| P/FCF | 17.81 | 10.41 | 6.38 | 4.22 | 1.75 | — | — | 5.42 | 3.30 | — | — |
| P/OCF | 14.71 | 8.59 | 4.96 | 3.46 | 1.32 | — | 13.49 | 3.13 | 2.46 | — | — |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 1.36 | 0.98 | 0.78 | 0.40 | 0.48 | 0.43 | 0.62 | 0.69 | — | — |
| EV / EBITDA | 12.50 | 8.24 | 6.19 | 5.28 | 2.61 | 2.89 | 3.51 | 3.76 | 3.85 | — | — |
| EV / EBIT | 15.01 | 9.89 | 6.84 | 6.00 | 2.50 | 2.74 | 6.61 | 4.88 | 5.58 | — | — |
| EV / FCF | — | 14.30 | 10.79 | 7.97 | 5.10 | — | — | 14.43 | 8.32 | — | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 24.5% | 24.5% | 25.6% | 23.4% | 23.3% | 23.6% | 22.3% | 25.9% | 26.7% | 28.4% | 26.2% |
| Operating Margin | 13.8% | 13.8% | 13.3% | 12.5% | 13.1% | 14.0% | 9.5% | 14.3% | 15.5% | 16.4% | 16.0% |
| Net Profit Margin | 8.6% | 8.6% | 8.1% | 6.7% | 10.8% | 13.6% | 2.6% | 9.6% | 35.0% | -31.8% | 6.6% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | — | — | — | — | — | — | — | — | — | — | — |
| ROA | 13.4% | 13.4% | 11.7% | 10.1% | 14.6% | 17.3% | 3.0% | 14.3% | 46.3% | -34.7% | 7.5% |
| ROIC | 59.1% | 59.1% | 48.8% | 47.6% | 45.9% | 54.2% | — | — | — | — | — |
| ROCE | 49.3% | 49.3% | 43.0% | 40.2% | 38.3% | 42.6% | 27.9% | 62.1% | 98.8% | 103.6% | 90.0% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | — | — | — | — | — | — | — | — | — | — | — |
| Debt / EBITDA | 2.55 | 2.55 | 2.76 | 2.94 | 2.16 | 2.73 | 4.46 | 2.70 | 2.65 | 1.81 | 1.65 |
| Net Debt / Equity | — | — | — | — | — | — | — | — | — | — | — |
| Net Debt / EBITDA | 2.24 | 2.24 | 2.53 | 2.49 | 1.72 | 1.95 | 2.61 | 2.35 | 2.32 | 1.28 | 1.43 |
| Debt / FCF | — | 3.89 | 4.41 | 3.75 | 3.35 | — | — | 9.01 | 5.02 | — | 3.50 |
| Interest Coverage | 4.70 | 4.70 | 3.18 | 3.17 | 6.90 | 6.72 | 2.49 | 6.09 | 21.84 | 46.75 | 36.71 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.97 | 0.97 | 0.93 | 1.02 | 1.04 | 1.00 | 1.02 | 0.86 | 0.79 | 0.82 | 0.81 |
| Quick Ratio | 0.72 | 0.72 | 0.71 | 0.83 | 0.84 | 0.84 | 0.89 | 0.70 | 0.67 | 0.74 | 0.76 |
| Cash Ratio | 0.13 | 0.13 | 0.10 | 0.19 | 0.18 | 0.31 | 0.38 | 0.13 | 0.13 | 0.23 | 0.21 |
| Asset Turnover | — | 1.51 | 1.53 | 1.54 | 1.37 | 1.34 | 1.01 | 1.43 | 1.60 | 1.03 | 1.13 |
| Inventory Turnover | 7.98 | 7.98 | 9.04 | 11.32 | 10.23 | 11.37 | 10.03 | 10.94 | 14.38 | 11.80 | 17.69 |
| Days Sales Outstanding | — | 74.75 | 74.05 | 77.58 | 86.82 | 76.56 | 103.82 | 79.45 | 81.11 | 152.32 | 140.91 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 0.8% | 1.5% | — | 2.6% | 16.7% | — | — | — | — | — | — |
| Payout Ratio | 16.8% | 16.8% | — | 16.1% | 21.3% | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 4.7% | 8.7% | 14.0% | — | 78.6% | 19.4% | 23.7% | 41.2% | 128.5% | — | — |
| FCF Yield | 5.6% | 9.6% | 15.7% | 23.7% | 57.3% | — | — | 18.5% | 30.3% | — | — |
| Buyback Yield | 3.5% | 5.9% | 15.0% | 50.8% | 78.2% | 39.3% | 0.0% | 0.0% | 0.0% | — | — |
| Total Shareholder Yield | 4.3% | 7.4% | 15.0% | 53.4% | 95.0% | 39.3% | 0.0% | 0.0% | 0.0% | — | — |
| Shares Outstanding | — | $204M | $224M | $167M | $65M | $70M | $76M | $76M | $74M | $76M | $76M |
ICE powertrain transition timing
According to current market data, Garrett Motion trades at a forward P/E of 18.44, which appears to discount the company's consistent cash generation in favor of a narrative centered on the long-term obsolescence of internal combustion engine components within the broader automotive parts sector.
The valuation gap relative to peers like Allison Transmission suggests investors are applying a significant 'transition discount' to Garrett's earnings. This pricing implies that the market expects a contraction in growth as electrification accelerates, potentially ignoring the resilience of the commercial vehicle and aftermarket segments.
Based on reported financial figures, Garrett Motion achieved an ROIC of 17.2% in 2025Q4, a metric that demonstrates the company's ability to generate high returns on its core operating assets despite the persistent drag of a negative equity balance sheet and legacy capital structure issues.
The double-digit ROIC indicates that the underlying turbocharger business remains highly efficient at converting invested capital into earnings. However, the lack of a positive book value complicates traditional return-on-equity analysis, making ROIC the more reliable indicator of operational health for this specific business model.
As evidenced by quarterly filings, Garrett Motion maintains a negative cash conversion cycle, reaching -22 days in 2025Q4, which suggests that the company effectively utilizes its supplier leverage to finance operations before collecting payments from its OEM customers for delivered turbocharger units.
This negative CCC is a critical indicator of operational strength, as it allows the company to self-fund working capital requirements during cyclical downturns. Investors should monitor the stability of these DPO levels, as any shift in supplier terms could rapidly tighten the company's narrow liquidity buffer.
According to recent financial statements, Garrett Motion has aggressively reduced its debt-to-EBITDA ratio to 10.47 by 2025Q4, a significant improvement that reflects management's commitment to repairing the balance sheet following the company's emergence from its previous Chapter 11 restructuring process.
While the debt service burden has become more manageable, the persistent negative equity position remains a structural vulnerability that warrants caution. The current interest coverage ratio of 4.42 suggests that the company is better positioned to handle its obligations than in prior periods, provided that OEM production volumes remain stable.
As reported in financial statements, the Price-to-Book ratio is effectively non-meaningful due to the company's negative equity position, a metric that frequently misleads analysts into viewing Garrett Motion as financially distressed rather than a highly cash-generative industrial manufacturer with a specialized competitive moat.
Relying on P/B for a company with significant legacy accounting adjustments obscures the true earning power of its turbocharger technology. Analysts should instead prioritize EV/EBITDA and free cash flow yield to assess the company's valuation, as these metrics better capture the operational reality of the business.
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Quick answers to the most common questions about buying GTX stock.
Garrett Motion Inc.'s current P/E ratio is 21.2x. The historical average is 4.6x. This places it at the 100th percentile of its historical range.
Garrett Motion Inc.'s current EV/EBITDA is 12.5x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 4.5x.
Based on historical data, Garrett Motion Inc. is trading at a P/E of 21.2x. This is at the 100th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Garrett Motion Inc.'s current dividend yield is 0.79% with a payout ratio of 16.8%.
Garrett Motion Inc. has 24.5% gross margin and 13.8% operating margin. Operating margin between 10-20% is typical for established companies.
Garrett Motion Inc.'s Debt/EBITDA ratio is 2.5x, indicating moderate leverage. A ratio between 2-4x is manageable but warrants monitoring.