Advance Auto Valuation
| AAP Stock | USD 41.35 3.09 6.95% |
At this time, the firm appears to be undervalued. Advance Auto Parts shows a prevailing Real Value of $47.6 per share. The current price of the firm is $41.35. Our model approximates the value of Advance Auto Parts from analyzing the firm fundamentals such as Return On Equity of -0.0046, insignificant profit margin, and Current Valuation of 6 B as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Advance Auto's valuation include:
Price Book 1.0219 | Enterprise Value 6 B | Enterprise Value Ebitda 12.6283 | Price Sales 0.2191 | Forward PE 28.6533 |
Undervalued
Today
Please note that Advance Auto's price fluctuation is very steady at this time. Calculation of the real value of Advance Auto Parts is based on 3 months time horizon. Increasing Advance Auto's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Advance Auto's intrinsic value may or may not be the same as its current market price of 41.35, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 41.35 | Real 47.6 | Target 68.61 | Hype 41.43 | Naive 43.22 |
The intrinsic value of Advance Auto's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Advance Auto's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Advance Auto Parts helps investors to forecast how Advance stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Advance Auto more accurately as focusing exclusively on Advance Auto's fundamentals will not take into account other important factors: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Advance Auto's intrinsic value based on its ongoing forecasts of Advance Auto's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Advance Auto's closest peers.
Advance Auto Cash |
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Advance Valuation Trend
Advance Auto's real value is important for investors to make better decisions and a more accurate overall view of Advance Auto's financial worth over time. Using both Advance Auto's enterprise value as well as its market capitalization is the best way to gauge the value of the company and is usually enough for investors to make market timing conclusions.
Advance Auto Total Value Analysis
Advance Auto Parts is presently forecasted to have company total value of 6 B with market capitalization of 2.47 B, debt of 4 B, and cash on hands of 269.28 M. Please note that company total value may be misleading and is a subject to accounting gimmicks. We encourage investors to carefully check all of the Advance Auto fundamentals before making security assessment based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
6 B | 2.47 B | 4 B | 269.28 M |
Advance Auto Investor Information
About 99.0% of the company shares are held by institutions such as insurance companies. The company has price-to-book (P/B) ratio of 1.02. Some equities with similar Price to Book (P/B) outperform the market in the long run. Advance Auto Parts has Price/Earnings To Growth (PEG) ratio of 0.59. The entity last dividend was issued on the 10th of January 2025. The firm had 3:2 split on the 26th of September 2005. Based on the analysis of Advance Auto's profitability, liquidity, and operating efficiency, Advance Auto Parts may be sliding down financialy. It has an above-average risk of going through some form of financial straits next quarter.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Operating Profit Margin | 0.0574 | 0.0576 |
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| Total Cash From Operating Activities | 564.2 M | 287.4 M |
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| Operating Income | 108.7 M | 114.4 M |
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Advance Auto Asset Utilization
The concept of asset utilization usually refers to the revenue earned for every dollar of assets a company currently reports. The latest return on assets of Advance connotes not a very effective usage of assets in November.Advance Auto Ownership Allocation
The majority of Advance Auto Parts outstanding shares are owned by other corporate entities. These outside corporations are usually referred to as non-private investors looking to acquire positions in Advance Auto Parts to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in Advance Auto. Please pay attention to any change in the institutional holdings of Advance Auto Parts as this could imply that something significant has changed or is about to change at the company.Advance Auto Profitability Analysis
The company reported the last year's revenue of 11.29 B. Total Income to common stockholders was 29.73 M with profit before taxes, overhead, and interest of 4.96 B.Advance Auto Past Distributions to stockholders
About Advance Auto Valuation
The stock valuation mechanism determines Advance Auto's current worth on a daily basis. In general, an absolute valuation approach attempts to find the value of Advance Auto Parts based exclusively on its fundamental and basic technical indicators. As compared to an absolute model, our relative valuation model uses a comparative analysis of Advance Auto. We calculate exposure to Advance Auto's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Advance Auto's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 4.5 B | 3.2 B | |
| Pretax Profit Margin | 0.05 | 0.05 | |
| Operating Profit Margin | 0.06 | 0.06 | |
| Net Profit Margin | 0.04 | 0.03 | |
| Gross Profit Margin | 0.40 | 0.36 |
A single share of Advance Auto represents a small ownership stake in the entity. As a stockholder of Advance, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
Advance Auto Dividends Analysis For Valuation
As of 11/30/2024, Dividend Yield is likely to grow to 0.04, though Dividends Paid is likely to grow to (198.8 M). . As of 11/30/2024, Retained Earnings is likely to grow to about 4.8 B, while Retained Earnings Total Equity is likely to drop slightly above 2.7 B.
| Last Reported | Projected for Next Year | ||
| Dividends Paid | -209.3 M | -198.8 M | |
| Dividend Yield | 0.03 | 0.04 | |
| Dividend Payout Ratio | 0.65 | 0.40 | |
| Dividend Paid And Capex Coverage Ratio | 0.85 | 0.81 |
There are various types of dividends Advance Auto can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Advance shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Advance Auto Parts directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Advance pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Advance Auto by the value of the dividends paid out.
Advance Auto Growth Indicators
Investing in growth stocks can be very risky. If the company such as Advance Auto does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 59.6 M | |
| Quarterly Earnings Growth Y O Y | -0.432 | |
| Forward Price Earnings | 28.6533 |
Advance Auto Current Valuation Indicators
Advance Auto's valuation analysis is a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Advance Auto's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Advance Auto, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Advance Auto's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Advance Auto's worth.Additional Tools for Advance Stock Analysis
When running Advance Auto's price analysis, check to measure Advance Auto's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Advance Auto is operating at the current time. Most of Advance Auto's value examination focuses on studying past and present price action to predict the probability of Advance Auto's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Advance Auto's price. Additionally, you may evaluate how the addition of Advance Auto to your portfolios can decrease your overall portfolio volatility.