Asbury Automotive Group operates as an automotive retailer in the United States. It offers a range of automotive products and services, including new and used vehicles; vehicle maintenance, replacement parts, and collision repair services; and aftermarket products, such as financing, insurance, and service contracts. The company was founded in 1995 and is based in Duluth, Georgia.
ABG Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Asbury Automotive Group Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Asbury Automotive Group Inc ranked in the 97th percentile in terms of potential gain offered. Our DCF analysis implies the stock could yield a return of 12577.17% if fairly valued; such returns are always unlikely, though, so further investigation is likely warranted. The most interesting components of our discounted cash flow analysis for Asbury Automotive Group Inc ended up being:
Its compound free cash flow growth rate, as measured over the past 5.44 years, is 1.17% -- higher than 91.94% of stocks in our DCF forecasting set.
The company has produced more trailing twelve month cash flow than 82.05% of its sector Consumer Cyclical.
Asbury Automotive Group Inc's weighted average cost of capital (WACC) is 7%; for context, that number is higher than only 11.61% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
CLUBQ, MSC, SBSAA, CONN, and RLH can be thought of as valuation peers to ABG, in the sense that they are in the Consumer Cyclical sector and have a similar price forecast based on DCF valuation.
DULUTH, Ga. , Sept. 14, 2020 /PRNewswire/ -- Asbury Automotive Group, Inc. (NYSE: ABG ) ("Asbury") announced today that it intends to offer up to $250.0 million aggregate principal amount of additional senior notes, which will consist of senior notes due 2028 (the "Additional 2028 Notes") and senior notes due 2030 (the "Additional 2030 Notes" and together with the Additional 2028 Notes, the "Additional Notes"). The offering will be exempt from the registration requirements of the Securities Act of 1933, as amended (the "Securities Act"). The Additional Notes of each series are part of the same issuance of, and will rank equally and form a single series, respectively, with the $280.0 million outstanding aggregate principal amount of Asbury's 4.50% senior notes due 2028 (the "2028 Notes")...
DULUTH, Ga., Sept. 14, 2020 /PRNewswire/ -- Asbury Automotive Group, Inc. (NYSE: ABG) ("Asbury") announced today that it has priced its previously announced private placement of senior notes, consisting of $125.0 million aggregate principal amount of additional 4.50% Senior Notes due 2028…
DULUTH, Ga., Aug. 24, 2020 /PRNewswire/ -- Asbury Automotive Group, Inc. (NYSE: ABG), one of the largest automotive retail and service companies in the U.S., has completed the acquisition of Park Place Dealerships adding approximately $1.7 billion in annual revenues. "Park Place remains…
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