Trimble Inc.

Methodology

Trimble's fair value calculation works reasonably well given the company's transition to software and recurring revenue, which creates more predictable earnings than its legacy hardware business. However, investors should normalize for acquisition impacts and the ongoing shift in business mix, as these transitions can create near-term margin pressure that distorts current EPS. The method is most reliable when applied to normalized post-transition earnings reflecting Trimble's evolution into a software-centric company.

Methodology

Trimble typically commands moderate to premium PEG ratios reflecting its exposure to secular trends in construction technology, precision agriculture, and transportation logistics software. The PEG framework works well for comparing Trimble to other vertical software companies, though investors should account for the remaining hardware exposure that creates more cyclicality than pure SaaS peers. As recurring revenue grows as a percentage of the mix, the PEG should reflect increasing earnings visibility and quality.

Methodology

Trimble pays no dividend, as management prioritizes reinvesting in product development and strategic acquisitions to accelerate the shift toward software and subscription revenue. PEGY therefore equals PEG with no yield component, reflecting the company's growth-oriented capital allocation strategy. For Trimble investors, evaluating the transition to recurring revenue and improving margins matters more than dividend income.