Gates Corporation

GTES US Industrials Industrial Machinery & Supplies & Components
S&P 600
$26.04
+1.60%
Delayed · cached 15 min

Fair value analysis

GTES
Gates Corporation
IndustrialsIndustrial Machinery & Supplies & Components
$26.04
Close used for this calculation
$26.61Fair value
Financial DNA Score
Profitability · Returns · Balance Sheet · Efficiency · Growth
51/100
Profitability17/25
Returns6/25
Balance Sheet18/25
Efficiency10/25
Growth11/25
Good
Quality radar
51Prof.17/25Ret.6/25Eff.10/25B.Sht18/25Growth11/25

Consensus fair value

$26.61
Near FV
▲ +2.2% against the close used
Model range $3.93 – $41.25
The lowest and highest of the models that produced a value. This is the spread of the methods, not a price target.

Price target range & 52-week position

Bear$3.93Fair value$26.61Bull$41.25
FairClose
52-week traded range
52W low $21.0452W high $29.84

The 52-week range is measured from the stored price history, not estimated.

Valuation summary

Trading close to the consensus fair value

Gates Corporation closed at $26.04, 2.1% below the consensus fair value of $26.61 drawn from 8 valuation models.

Financial DNA score 51/100 — Good. P/E of 27.1x against the 20x sector multiple the P/E model uses.

Quantitative summary only — not investment advice.

All valuation models

DCF Valuation
$30.69
+17.9%
Σ[CF×(1+g)^n/(1.10)^n] + TV/(1.10)^10
g=9%, r=10%, tg=3%, n=10yr
Graham Number
$17.25
-33.8%
√(22.5 × EPS × BVPS)
EPS=0.96, BVPS=13.78 · outside Graham range (P/E 27.1, P/B 1.9) — asset-light, treat as a rough floor
P/E Fair Value
$19.20
-26.3%
EPS × 20x (sector P/E)
EPS=0.96, Sector P/E=20x
Peter Lynch (PEG)
$18.78
-27.9%
EPS × Growth% (PEG = 1 is fair)
EPS=0.96, g=19.6%
EV/EBITDA
$41.25
+58.4%
(EBITDA × 18x − Net Debt) ÷ Shares
EBITDA=679.1M
Book Value (P/B)
$3.93
-84.9%
BVPS × (ROE−g)÷(r−g) [Justified P/B — RIM-based]
BVPS=13.78, ROE=7.1%, g=6%, r=10%
Reverse DCF
$26.04
+0.0%
Solve for g: Price = Σ[EPS×(1+g)^n/(1.10)^n] + TV
Implied: 11.3% | Historical: 19.6%
Margin of Safety
$16.79
-35.5%
Avg(DCF, Graham, P/E) × 75% (25% safety buffer)
Avg fair value=22.38, MoS=25%

Computed on September 12, 2026 from the most recent annual report on file and that day's closing price. Where a company has seen its earnings move sharply since its last annual report, this figure will lag the market.

Educational data only. Not a recommendation to buy, sell or hold any security.

Educational data only. Not a recommendation to buy, sell or hold any security.