Update shared on 01 Nov 2025
Fair value Decreased 4.55%Analysts have lowered their price target for Credit Acceptance from $467.50 to $446.25. They cite shifts in projected revenue growth and underlying financial assumptions as key drivers of the revision.
What's in the News
- Credit Acceptance completed the repurchase of 1,838,933 shares for $921.17 million, equaling 15.3 percent of outstanding shares as part of the buyback program initiated in August 2023 (Key Developments).
- Between July 1 and September 30, 2025, the company repurchased 230,064 shares valued at $106.39 million, representing 2.05 percent of shares (Key Developments).
- Kenneth S. Booth, CEO and President, will retire on January 31, 2026 and transition to Executive Board Member. Vinayak R. Hegde, currently on the Board of Directors, will become CEO effective November 13, 2025 (Key Developments).
- Credit Acceptance announced a new share repurchase program authorizing the buyback of up to 2,000,000 shares with no set expiration date (Key Developments).
- The Board of Directors authorized a new buyback plan on September 29, 2025 (Key Developments).
Valuation Changes
- Consensus Analyst Price Target lowered from $467.50 to $446.25, a decrease of $21.25.
- Discount Rate has risen slightly, moving from 10.54 percent to 11.04 percent.
- Revenue Growth forecast fell significantly from 56.16 percent to 32.60 percent.
- Net Profit Margin is now projected higher, increasing from 11.28 percent to 18.15 percent.
- Future P/E ratio declined from 11.28x to 9.37x.
Disclaimer
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