Trimble (TRMB:NAS) Fundamental Valuation Report

Trimble (TRMB:NAS) Fundamental Valuation Report

Fundamental Valuation Report


Technology:Scientific & Technical Instruments

This Report was generated using the valuation tools available on For a free 30 day trial click here.

Close Price/Date
$80.40 (USD) 04/09/2021

Weighted Valuation
$79.71 (USD)

Overall Rating
Fairly valued to slightly Overvalued by 0.9%

Valuation Models Comparables: $71.02 (USD)
Valuation Methods This company is:
Cash Flow: Overvalued on a Cash Flow Valuation
Comparable Company: Overvalued on a Comparable Valuation
Asset: Overvalued on an Asset Valuation
According to Analyst consensus at $85.50 this stock is Undervalued

Company Overview (TRMB:NAS USD)

Price 80.40
Range 79.71 – 80.78
52 week 31.34 – 83.74
Open 80.01
Vol / Avg. 1.16M/1.79M
Mkt cap 20.21B
P/E 51.87
Div/yield 0.00/0.00
EPS 1.55
Shares 251.34M
Beta 1.54

Company Description

Trimble Inc provides location-based solutions that are used in global positioning system (GPS), laser, optical and inertial technologies. Its products portfolio includes 3D laser scanning, flow and application control systems, monitoring systems, water management, and navigation infrastructure. It also manufactures laser and optics-based products, and GPS products. The company serves various industries which include agriculture, architecture, civil engineering, survey and land administration, construction, geospatial among others. The company operates in four reportable segments namely, Buildings and Infrastructure, Geospatial, Resources and Utilities, and Transportation. It derives most of its revenues from the US and Europe with the rest coming from the Asia Pacific and other markets.

Valuation Details

 We have up to 6 valuation points for each company. Details are at the bottom of the report.

Discounted Cash Flow and Sensitivity Analysis for TRMB:NAS

Using a discounted cash flow model we generated an intrinsic value of $41.01 (USD) for TRMB:NAS

Sensitivity Analysis

(showing how changes in the input variables impact the DCF calculation)

TRMB:NAS Current Values Valuation If Dropped * Valuation If Raised *
Calculated Value: $41.01 1% 5% 1% 5%
WACC (or Ke) 10.04 $48.18 $35.62
Terminal Growth Rate 3.00 $36.28 $47.30
Tax Rate 0.01 $43.27 $38.77
Cash Flow 891,934,680 $38.70 $43.31
Capital Expenditures -52,620,000 $40.90 $41.12
Long Term Debt 669,800,000 $41.14 $40.87

* Changes are absolute: ex WACC from 8% to 7%

Comparables Model

Using similar companies and price based ratios we generated a valuation of $71.02 (USD) for TRMB:NAS. We also generated a valuation of $59.90 (USD) using other metrics and comparables.
The comparable companies were Fortive (FTV:NYS), Keysight Technologies (KEYS:NYS), Teledyne Technologies (TDY:NYS), Itron (ITRI:NAS) and II-VI (IIVI:NAS).

Company TRMB:NAS End Date Value
Earnings/Share $1.55 (USD)
Book Value/Share $14.31 (USD)
Sales/Share $12.48 (USD)
Cash Flow/Share $2.66 (USD)
EBITDA/Share $2.66 (USD)
Price Based on Comps Adjustment Factor (%)
$54.38 (USD) 22.0
$66.13 (USD) 26.4
$53.51 (USD) 29.1
$54.65 (USD) -31.1
$72.31 (USD) 42.8
51.87 PE Ratio 35.08 17.52 43.39 39.52 0.00 39.90
5.62 PB Ratio 4.62 2.68 7.69 4.81 5.06 2.86
6.44 PS Ratio 4.29 5.50 6.39 5.15 1.70 2.71
30.19 PCF Ratio 22.98 17.73 24.71 25.70 33.67 13.09
32.27 EV to EBITDA 27.23 12.49 23.44 26.02 58.05 16.14


Using a multiples approach we generated a valuation of  $57.34 (USD) for TRMB:NAS

Company TRMB:NAS End Date Value
Earnings/Share $1.55 (USD)
Book Value/Share $14.31 (USD)
Sales/Share $12.48 (USD)
Cash Flow/Share $2.66 (USD)
EBITDA/Share $2.66 (USD)
Price Based on Comps Adjustment Factor
$78.59 (USD) 0
$52.59 (USD) 0
$42.83 (USD) 0
$55.85 (USD) 0
$56.86 (USD) 0
Ratios Ratio Average
PE Ratio 50.70
PB Ratio 3.68
PS Ratio 3.43
PCF Ratio 20.97
EV to EBITDA 21.41

Adjusted Book Value versus Historical Price to Book

The average the Price to Book ratio for  TRMB:NAS for the last 10 years was  3.47

We ran the Adjusted Book Value for  TRMB:NAS and generated a book value of  $14.34 (USD)
By multiplying these we get an adjusted valuation of  $49.80 (USD)

Analyst Data

In the Stockcalc database there are 2 analysts that provide a valuation for TRMB:NAS. The 2 analysts have a concensus valuation for TRMB:NAS for 2021 of $85.50 (USD).

TRMB:NAS Trimble

Analyst Recommendation
Buy Hold Sell Rating
(of 5)
Guidance As Of
2 1 0 4.3333 Outperform 2021-4-8

Current Price: 80.4 USD

Analyst Consensus
USD Millions 2021 2022
Mean EPS 2.37 2.73
# EPS Analysts 3 3
Mean Revenue 3,351.00 3,573.30
# Revenue Analysts 1 1
Mean Target Price 85.50
Mean Cash Flow 2.67 2.88
Mean EBITDA 836.00 951.60
Mean Net Income 596.10 687.40
Mean Debt Outstanding 896.90 433.90
Mean Tax Rate 16.50 16.50
Mean Growth Rate 10.00
Mean Capital Expenditure 72.00 80.00

Explanation of Valuation Models

We have up to 6 valuation points for each company in the database.

The Discounted Cash Flow (DCF) valuation is a cash flow model where cash flow projections are discounted back to the present to calculate value per share. DCF is a common valuation technique especially for companies undergoing irregular cash flows such as resource companies (mining, forestry, oil and gas) going though price cycles or smaller companies about to generate cash flow (junior exploration companies, junior pharma, technology firms…).

The Price Comparables valuation is the result of valuing the company we are looking at on the basis of ratios from selected comparable companies: Price to Earnings, Price to Book, Price to Sales, Price to Cash Flow, Enterprise Value (EV) to EBITDA. Each of these ratios for the selected comparable companies are averaged and multiplied by the values for the company we are interested in to calculate a value per share for our selected company.

We have included the Other Comparables as a way to value companies that cannot be valued using Earnings based ratios. This technique is very useful for companies still experiencing negative cash flows such as mining exploration firms. We use Cash/Share, Book Value/Share, MarketCap, 1 Year Return, NetPPE as the ratios here. Each of these ratios for the selected comparable companies are averaged and multiplied by the values for the company we are interested in to calculate a value per share for our selected company.

Multiples are similar to Price comparables where we look at current or historic ratios for the company in question to assess what it should be worth today based on those historic ratios. We use the same 5 ratios as in the price comparables and value the company with its historic averages.

With Adjusted Book Value (ABV) we calculate the book value per share for the company based on its balance sheet and multiply that book value per share by its historical price to book ratio to calculate a value per share.

If we have Analyst coverage for the company we use the consensus target price here.

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