Update shared on 13 Dec 2025
Fair value Decreased 11%Analysts have trimmed their fair value estimate for Asbury Automotive Group from approximately $335.00 to $297.00, reflecting a higher assumed discount rate and a lower future valuation multiple that more than offset slightly stronger expectations for revenue growth and profit margin.
What's in the News
- CEO succession announced, with current Chief Executive Officer David W. Hult set to transition to Executive Chairman following the 2026 Annual Meeting and remain on the Board, after notifying the company of his decision to step down as CEO effective at that time (Key Developments)
- Board elects Chief Operating Officer Daniel E. Clara to succeed Hult as Chief Executive Officer, highlighting his long tenure at Asbury and his role in driving same-store growth, major acquisition integrations, and long-term shareholder value (Key Developments)
- Company reports completion of a major share repurchase effort, buying back 1,296,925 shares, or 6.44 percent of outstanding shares, for a total of approximately $280.29 million under the buyback launched in May 2023 (Key Developments)
- Class action lawsuit filed in San Diego County Superior Court alleges multiple violations of California labor law, including failure to provide meal and rest breaks, pay minimum and overtime wages, issue accurate wage statements, and reimburse required business expenses (Key Developments)
Valuation Changes
- Fair Value Estimate reduced from approximately $335.00 to $297.00, indicating a moderate downward revision in projected intrinsic value per share.
- Discount Rate increased from about 10.60 percent to roughly 11.93 percent, reflecting a meaningful rise in the assumed risk and required return.
- Revenue Growth nudged up from around 8.49 percent to about 8.71 percent annually, indicating a slight improvement in long term top line expectations.
- Net Profit Margin raised modestly from approximately 3.12 percent to about 3.20 percent, suggesting a small upgrade to future profitability assumptions.
- Future P/E lowered from about 12.51x to roughly 10.24x, representing a significant reduction in the valuation multiple applied to future earnings.
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