AutoNation provides new and used automotive and spare parts retail services in the United States. The company operates in three segments: Domestic, Import, and Premium Luxury. The company is based in Fort Lauderdale, Florida.
AN Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for AN, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Autonation Inc ranked in the 54th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 23.67%. The most interesting components of our discounted cash flow analysis for Autonation Inc ended up being:
Autonation Inc's effective tax rate, as measured by taxes paid relative to net income, is at 17 -- greater than 65.65% of US stocks with positive free cash flow.
The weighted average cost of capital for the company is 8. This value is greater than 66.8% stocks in the Consumer Cyclical sector that generate free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
CLUB, SIX, CATO, TSQ, and CTRN can be thought of as valuation peers to AN, in the sense that they are in the Consumer Cyclical sector and have a similar price forecast based on DCF valuation.
The coronavirus pandemic has spurred U.S. companies with investment-grade credit ratings to borrow at the fastest pace in history to start a year, with new bond issuance topping $1 trillion in less than five months, supported by Federal Reserve programs to buy corporate bonds.
FORT LAUDERDALE, Fla., May 19, 2020 /PRNewswire/ -- AutoNation, Inc. (NYSE: AN), America's largest and most recognized automotive retailer (the "Company"), announced today the pricing of $500 million aggregate principal amount of senior unsecured notes due 2030 at 4.750% (the "notes")….
The Treasury Department says Paycheck Protection Program loans are not meant for “a public company with substantial market value and access to capital markets” and given big borrowers a May 18 deadline. Here’s how the returns are going.