AutoNation Valuation
| AN Stock | USD 205.27 0.29 0.14% |
At this time, the firm appears to be fairly valued. AutoNation shows a prevailing Real Value of $205.76 per share. The current price of the firm is $205.27. Our model approximates the value of AutoNation from analyzing the firm fundamentals such as Current Valuation of 17.14 B, profit margin of 0.02 %, and Return On Equity of 0.27 as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting AutoNation's valuation include:
Price Book 2.9603 | Enterprise Value | Enterprise Value Ebitda 10.7825 | Price Sales 0.2682 | Forward PE 9.6805 |
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 205.27 | Real 205.76 | Target 239.3 | Hype 205.27 | Naive 195.38 |
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 |
|
AutoNation Revenue by Product
AutoNation Total Value Analysis
AutoNation is presently estimated to have takeover value of 17.14 B with market capitalization of 7.49 B, debt of 8.65 B, and cash on hands of 59.8 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 |
17.14 B | 7.49 B | 8.65 B | 59.8 M |
AutoNation Investor Information
About 95.0% of the company shares are held by institutions such as insurance companies. The book value of AutoNation was presently reported as 68.11. The company has Price/Earnings To Growth (PEG) ratio of 0.83. AutoNation recorded earning per share (EPS) of 16.98. 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 March.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 205.86 percent. This suggests that the Company is making $2.06 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 Profitability Analysis
Considering AutoNation's profitability and operating efficiency indicators, AutoNation is performing exceptionally good at the moment. It has a great risk to showcase excellent profitability results in March. Profitability indicators assess AutoNation's ability to earn profits and add value for shareholders.Net Income | First Reported 1989-03-31 | Previous Quarter 86.4 M | Current Value 215.1 M | Quarterly Volatility 163.3 M |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Pretax Profit Margin | 0.0405 | 0.0394 |
|
|
For AutoNation profitability analysis, we use financial ratios and fundamental drivers that measure the ability of AutoNation to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well AutoNation utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between AutoNation's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of AutoNation over time as well as its relative position and ranking within its peers.
AutoNation Earnings per Share Projection vs Actual
By analyzing AutoNation's earnings estimates, investors can diagnose different trends across AutoNation's analyst sentiment over time as well as compare current EPS estimates against different timeframes. Please be aware that the consensus of earnings estimates for AutoNation is based on EPS before non-recurring items and includes expenses related to employee stock options.AutoNation Ownership Allocation
AutoNation holds a total of 36.27 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. Please note that no matter how many assets the company secures, if the real value of the firm is less than the current market value, you may not be able to make money on it.AutoNation Profitability Analysis
The company generated the yearly revenue of 26.77 B. Reported Net Income was 692.2 M with gross profit of 4.98 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 | 5.5 B | 2.8 B | |
| Pretax Profit Margin | 0.04 | 0.04 | |
| Operating Profit Margin | 0.04 | 0.05 | |
| Net Profit Margin | 0.02 | 0.02 | |
| Gross Profit Margin | 0.16 | 0.13 |
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 | 40.3 M | |
| Quarterly Earnings Growth Y O Y | 0.226 | |
| Forward Price Earnings | 9.6805 |
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 industry. To learn how to invest in AutoNation Stock, please use our How to Invest in AutoNation guide.You can also try the Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Will Automotive Retail sector continue expanding? Could AutoNation diversify its offerings? 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. Accurate valuation requires analyzing both current fundamentals and future growth trajectories. Every AutoNation data point contributes insight, yet successful analysis hinges on identifying the most consequential variables.
Quarterly Earnings Growth 0.226 | Earnings Share 16.98 | Revenue Per Share | Quarterly Revenue Growth 0.069 | Return On Assets |
Understanding AutoNation requires distinguishing between market price and book value, where the latter reflects AutoNation's accounting equity. The concept of intrinsic value—what AutoNation's is actually worth based on fundamentals - guides informed investors toward better entry and exit points. Seasoned market participants apply comprehensive analytical frameworks to derive fundamental worth and identify mispriced opportunities. Market sentiment, economic cycles, and investor behavior can push AutoNation's price substantially above or below its fundamental value.
Understanding that AutoNation's value differs from its trading price is crucial, as each reflects different aspects of the company. Evaluating whether AutoNation represents a sound investment requires analyzing earnings trends, revenue growth, technical signals, industry dynamics, and expert forecasts. In contrast, AutoNation's trading price reflects the actual exchange value where willing buyers and sellers reach mutual agreement.