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:
Below please find a table outlining a discounted cash flow forecast for AAP, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Advance Auto Parts Inc ranked in the 28th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. 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 14.64 -- which is good for besting 84.16% of its peer stocks (US stocks in the Consumer Cyclical sector with positive cash flow).
Advance Auto Parts Inc's weighted average cost of capital (WACC) is 7%; for context, that number is higher than merely 14.22% 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 merely 14.22% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Advance Auto Parts Inc? See BBX, MCFT, MCD, SON, and GPC.
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Shareholder rights law firm Robbins LLP reminds investors that it is investigating the officers and directors of Advance Auto Parts, Inc. (NYSE: AAP) for breaches of fiduciary duties, unjust enrichment, and violations of the Securities Exchange Act of 1934. AAP provides automotive replacement parts, accessories, batteries, and maintenance items for domestic and imported vehicles.