Generac Holdings Inc. (GNRC) Fair Value & PE Analysis
Industrial - Machinery · NYSE
Current Price
$267.58
PE Ratio (TTM)
82.7x
Intrinsic Value
$271.49
+1.4% margin of safety
What Is Generac Holdings Inc.'s Fair Value?
As of 2026-06-15, applying a 50.0x earnings multiple to Generac Holdings Inc.'s (GNRC) earnings per share of $3.24 yields a fair value estimate of $271.49 per share, versus a market price of $267.58.
Fair value from earnings multiples is sensitive to the multiple you choose. Across the sensitivity grid the estimate spans $236.41 to $310.51. This is a relative estimate anchored to earnings, not a statement of fact. For a cash flow based view, see the intrinsic value estimate on the DCF page.
How our PE model works · Recalculate in PE mode · GNRC intrinsic value (DCF view)
Is Generac Holdings Inc. (GNRC) Overvalued?
At $267.58, GNRC trades about 1.4% below its PE-based fair value estimate, a modest discount to its earnings power, though not enough for us to call it cheap outright.
COMPETITIVE MOAT
↑AI Data Center Power Leader
Generac is positioned as a critical supplier for AI's immense power needs. Their large-scale generators are essential for the continuous operation of data centers.
↑Hyperscaler Partnerships
Securing global supply agreements with leading hyperscale data center operators creates sticky customer relationships. This indicates strong demand and trust in their solutions.
↑Product Innovation Recognition
Awards for their 3.25MW generator highlight technological leadership. This reinforces their ability to meet demanding, mission-critical power requirements.
INVESTMENT RISKS
↓Concentration Risk
Reliance on a few large hyperscaler contracts could expose Generac to significant revenue fluctuations if these relationships change. Diversification is key.
↓Technological Obsolescence
Rapid advancements in AI and data center technology could necessitate continuous, costly R&D to maintain competitive power solutions. New energy sources could emerge.
↓Supply Chain Vulnerabilities
Global supply agreements for complex machinery are susceptible to disruptions. Geopolitical events or material shortages could impact production and delivery.
Base case
GNRC base case PE valuation
Intrinsic Value
$271.49
Margin of safety
+1.4%
Expected annual return
+0.3%
Base case assumptions: 20.0% annual earnings growth, 50x target PE, 10% discount rate, 5 year projection. Data as of 2026-06-15.
This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the GNRC PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Generac Holdings Inc. respond.
Open PE Calculator for GNRCCompany Overview
Generac Holdings Inc. specializes in the engineering, manufacturing, and global distribution of diverse power generation systems, energy storage solutions, and related electrical products. The company caters to residential users, light commercial enterprises, and industrial sectors worldwide. At its core, Generac produces vital components such as engines, alternators, batteries, advanced electronic controls, and robust steel enclosures. For homeowners, the company provides a range of automatic standby generators, from 7.5kW up to 150kW, including air-cooled models (7.5kW-26kW) and more powerful liquid-cooled units (22kW-150kW). Many of these residential systems are compatible with Mobile Link, a remote monitoring platform. Generac also offers portable generators, spanning outputs from 800W to 17.5kW, alongside an extensive catalog of outdoor power equipment like trimmers, mowers, log splitters, and pressure washers. Its commitment to sustainable energy is evident through its clean energy offerings, marketed under the PWRcell and PWRview brands. Serving commercial and industrial clients, Generac supplies essential equipment such as light towers, mobile power units, and portable energy storage systems. Its portfolio extends to include commercial mobile pumps, dust-suppression apparatus, and various control systems for gaseous-fueled engines. Light-commercial standby generators, rated from 22kW to 150kW, deliver critical three-phase power to small and mid-sized businesses. For heavy-duty applications, industrial generators with capabilities from 10kW to a formidable 3,250kW are deployed as emergency backup power for vital infrastructure across healthcare, telecommunications, data centers, commercial offices, retail, municipal services, and manufacturing facilities. Beyond direct product sales, the company supports its offerings by supplying aftermarket service parts and product accessories to its vast dealer network. Generac's distribution strategy is multi-faceted, leveraging independent residential and industrial dealers, major national and regional retailers, e-commerce platforms, specialized wholesalers (electrical, HVAC, solar), catalogs, equipment rental firms, and direct engagement with end-users. Founded in 1959, Generac Holdings Inc. is proudly headquartered in Waukesha, Wisconsin.
Financial Metrics — GNRC PE Stock Valuation Data
PE Ratio (TTM)
82.7x
PEG Ratio
n/m
Earnings Yield
1.21%
ROE (TTM)
7.2%
Revenue/Share (TTM)
$74.07
Debt/Equity
0.49x
Frequently Asked Questions
What is the PE ratio of GNRC?
The trailing twelve-month PE ratio of GNRC reflects how much investors pay per dollar of Generac Holdings Inc.'s earnings. This metric is most useful when compared to Industrial - Machinery peers and the company's own historical range.
Is GNRC overvalued based on PE ratio?
GNRC's PE of 82.7x combined with a PEG ratio of -1.87 provides a growth-adjusted perspective. GNRC has negative earnings, so its PE and PEG ratios are not meaningful here and cannot tell you whether the stock is over or undervalued. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Industrial - Machinery, a DCF analysis may be more appropriate.
How do I value GNRC stock using PE ratio?
To value Generac Holdings Inc. using PE: (1) Compare the current PE (82.7x) against the Industrial - Machinery median to assess relative pricing, (2) check the PEG ratio (-1.87) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
What is the PEG ratio of GNRC?
GNRC's PEG ratio is -1.87, calculated by dividing the PE ratio (82.7x) by the expected earnings growth rate. Because GNRC has negative earnings, its PEG ratio is not meaningful and should not be read as a sign of under or overvaluation. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for GNRC stock valuation?
PE ratio gives a quick relative read — how GNRC is priced versus Industrial - Machinery peers. DCF provides an absolute value based on projected free cash flows. For the most reliable valuation, use PE as a quick comparability screen and DCF for a deeper fundamental analysis. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
Learn More
- See GNRC DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
- PE Methodology — Step-by-step guide to PE ratio stock valuation
- DCF Methodology — Guide to discounted cash flow analysis
- PE Ratio — Understanding the price-to-earnings ratio
- Intrinsic Value — How to evaluate stock fair value
Related PE Valuations
All Industrials valuationsP/E and DCF value GNRC with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-06-15. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.