With a market capitalization of $10,120,532,128, Advance Auto Parts Inc has a greater market value than 85.01% of US stocks.
With a one year PEG ratio of 1,156.38, Advance Auto Parts Inc is expected to have a higher PEG ratio (a measure of how expensive a stock is relative to its expected earnings growth) than 97.05% of US stocks.
Of note is the ratio of Advance Auto Parts Inc's sales and general administrative expense to its total operating expenses; 87.9% of US stocks have a lower such ratio.
Stocks that are quantitatively similar to AAP, based on their financial statements, market capitalization, and price volatility, are DECK, HSIC, TTC, LKQ, and LZB.
Advance Auto Parts Inc Advance Auto Parts Inc W/I (AAP) Company Bio
Advance Auto Parts is an automotive aftermarket parts provider in the U.S., serves both the professional installer and do-it-yourself customers. The company was founded in 1929 and is based in Roanoke, Virginia.
AAP Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Advance Auto Parts Inc. To summarize, we found that Advance Auto Parts Inc ranked in the 30th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 48%. In terms of the factors that were most noteworthy in this DCF analysis for AAP, they are:
The company's debt burden, as measured by earnings divided by interest payments, is 15.15; that's higher than 86.73% of US stocks in the Consumer Cyclical sector that have positive free cash flow.
Advance Auto Parts Inc's weighted average cost of capital (WACC) is 7%; for context, that number is higher than just 14.54% of tickers in our DCF set.
AAP's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than just 14.54% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Consumer Cyclical that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as AAP, try JOUT, PSO, DLB, ATR, and GM.
RALEIGH, N.C.--(BUSINESS WIRE)--Advance Auto Parts, Inc. (“Advance”) (NYSE: AAP), a leading automotive aftermarket parts provider in North America, announced today the expiration of the previously announced cash tender offer for any and all of its outstanding 4.50% senior unsecured notes due December 1, 2023 (CUSIP No. 00751Y AC0) (the “Notes”), on the terms and subject to the conditions set forth in the Offer to Purchase, dated September 22, 2020 (the “Offer to Purchase”), and the related Noti
RALEIGH, N.C.--(BUSINESS WIRE)--Advance Auto Parts, Inc. (“Advance”) (NYSE: AAP), a leading automotive aftermarket parts provider in North America, announced today that it has commenced a cash tender offer for any and all of its outstanding 4.50% senior unsecured notes due December 1, 2023 (CUSIP No. 00751Y AC0) (the “Notes”), on the terms and subject to the conditions set forth in the Offer to Purchase, dated the date hereof (as it may be amended or supplemented from time to time, the “Offer t
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