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Generac Holdings Inc. — Intrinsic Value & Fair Price

GNRC
NYSEIndustrialsIndustrial - MachineryCIK 0001474735generac.comAbout GNRC
Last close · Oct 16, 2026192.68−5.72 (−2.88%)
Market cap$11.4B
Model value · DCF · Perpetuity growth · 5y
126.55
Generac closed at $192.68 — overvalued by 52% vs model.
89.86the model's range202.88

DCF · Perpetuity growth · 5y leads for a cyclical company — positive operating income and three years of positive free cash flow. From a five-year discounted cash flow.

Other models
55.81 – 344.51
Wall St. target
293.50 34% below
Above model, 1y
20 of 20 days

Price and model value

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How it is valued

Valued asCyclical
Low/slowing growth (~2% recent)Thin margins (3.8% net margin)Highly cyclical earnings
What growth the price implies: the reverse DCF

Key figures

FY2025 · chosen for cyclical companies
P/E
71.6×
EV / EBITDA
26.5×
FCF yield
2.4%
Dividend yield, TTM
0.00%
Beta
1.92
Cost of capital (WACC)
11.05%
Full financials

Analyst actions

third-party, quoted
10-08Keybanc · “Overweight” from “Sector Weight”upgrade
10-08KeyBanc · target280.00
10-08Piper Sandler · target303.00
10-05Cantor Fitzgerald · target297.00
Ratings, targets and estimates

Comparable companies

by business, not by industry label

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About Generac

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.

CEO
Aaron Jagdfeld
Headquarters
Waukesha, WI
Employees
9,400
IPO
2010-02-11
Full company profile

Model estimates for research reference only, not investment advice. Every model rests on assumptions that may not match what happens; the formulas are in how we value a stock.