AutoNation Valuation
| AN Stock | USD 172.46 2.41 1.42% |
At this time, the firm appears to be fairly valued. AutoNation shows a prevailing Real Value of $170.17 per share. The current price of the firm is $172.46. Our model approximates the value of AutoNation from analyzing the firm fundamentals such as Return On Equity of 0.32, profit margin of 0.03 %, and Current Valuation of 15.53 B as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting AutoNation's valuation include:
Price Book 2.8835 | Enterprise Value 15.5 B | Enterprise Value Ebitda 9.8195 | Price Sales 0.2598 | Forward PE 8.8261 |
Fairly Valued
Today
Please note that AutoNation's price fluctuation is very steady at this time. Calculation of the real value of AutoNation is based on 3 months time horizon. Increasing AutoNation's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Since AutoNation is currently traded on the exchange, buyers and sellers on that exchange determine the market value of AutoNation Stock. However, AutoNation's intrinsic value may or may not be the same as its current market price, 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 172.46 | Real 170.17 | Target 169.56 | Hype 172.55 | Naive 165.0 |
The intrinsic value of AutoNation'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 AutoNation'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 AutoNation helps investors to forecast how AutoNation 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 AutoNation more accurately as focusing exclusively on AutoNation'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 AutoNation's intrinsic value based on its ongoing forecasts of AutoNation's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against AutoNation's closest peers.
AutoNation Cash |
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AutoNation Valuation Trend
Knowing AutoNation's actual value is paramount for traders when making sound investment determinations. Using both AutoNation's enterprise value as well as its market capitalization is the best way to estimate the value of the company and is usually enough for investors to make market timing decisions.
AutoNation Revenue by Product
AutoNation Total Value Analysis
AutoNation is presently estimated to have takeover value of 15.53 B with market capitalization of 6.84 B, debt of 4.69 B, and cash on hands of 72.6 M. Please note that takeover value may be misleading and is a subject to accounting mistakes. We encourage investors to methodically examine all of the AutoNation fundamentals before making investment evaluation based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
15.53 B | 6.84 B | 4.69 B | 72.6 M |
AutoNation Investor Information
About 17.0% of the company shares are held by company insiders. The book value of AutoNation was presently reported as 59.81. The company has Price/Earnings To Growth (PEG) ratio of 2.67. AutoNation recorded earning per share (EPS) of 17.4. The entity had not issued any dividends in recent years. The firm had 2:1 split on the 10th of June 1996. Based on the analysis of AutoNation's profitability, liquidity, and operating efficiency, AutoNation is performing exceptionally good at the moment. It has a great risk to report excellent financial results in December.AutoNation Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. AutoNation has an asset utilization ratio of 218.11 percent. This suggests that the Company is making $2.18 for each dollar of assets. An increasing asset utilization means that AutoNation is more efficient with each dollar of assets it utilizes for everyday operations.AutoNation Ownership Allocation
AutoNation holds a total of 39.65 Million outstanding shares. The majority of AutoNation outstanding shares are owned by other corporate entities. These outside corporations are usually referred to as non-private investors looking to acquire positions in AutoNation to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in AutoNation. Please pay attention to any change in the institutional holdings of AutoNation as this could imply that something significant has changed or is about to change at the company. On October 13, 2018, Representative Thomas J Rooney of US Congress acquired $15k to $50k worth of AutoNation's common stock.AutoNation Profitability Analysis
The company generated the yearly revenue of 26.95 B. Reported Net Income was 1.02 B with gross profit of 5.27 B.About AutoNation Valuation
We use absolute and relative valuation methodologies to arrive at the intrinsic value of AutoNation. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of AutoNation based exclusively on its fundamental and basic technical indicators. By analyzing AutoNation's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of AutoNation's intrinsic value. As compared to an absolute model, our relative valuation model uses a comparative analysis of AutoNation. We calculate exposure to AutoNation's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of AutoNation's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 5.1 B | 2.7 B | |
| Pretax Profit Margin | 0.05 | 0.05 | |
| Operating Profit Margin | 0.06 | 0.06 | |
| Net Profit Margin | 0.04 | 0.04 | |
| Gross Profit Margin | 0.19 | 0.22 |
AutoNation Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines.
| Common Stock Shares Outstanding | 44.9 M | |
| Quarterly Earnings Growth Y O Y | -0.168 | |
| Forward Price Earnings | 8.8261 |
AutoNation Current Valuation Indicators
AutoNation'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 AutoNation'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 AutoNation, 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 AutoNation'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 AutoNation's worth.Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in AutoNation. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors. To learn how to invest in AutoNation Stock, please use our How to Invest in AutoNation guide.You can also try the Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Is Automotive Retail space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of AutoNation. If investors know AutoNation will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about AutoNation listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.17) | Earnings Share 17.4 | Revenue Per Share 638.438 | Quarterly Revenue Growth (0.04) | Return On Assets 0.0657 |
The market value of AutoNation is measured differently than its book value, which is the value of AutoNation that is recorded on the company's balance sheet. Investors also form their own opinion of AutoNation's value that differs from its market value or its book value, called intrinsic value, which is AutoNation's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because AutoNation's market value can be influenced by many factors that don't directly affect AutoNation's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between AutoNation's value and its price as these two are different measures arrived at by different means. Investors typically determine if AutoNation is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, AutoNation's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.