Auto Trader Group plc

LSE:AUTO Stock Report

Market Cap: UK£6.8b

Auto Trader Group Valuation

Is AUTO undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of AUTO when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Discounted Cash Flow
Simply Wall St
UK£7.83
Fair Value
0.9% undervalued intrinsic discount
15
Number of Analysts

Below Fair Value: AUTO (£7.76) is trading below our estimate of fair value (£7.83)

Significantly Below Fair Value: AUTO is trading below fair value, but not by a significant amount.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for AUTO?

Key metric: As AUTO is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for AUTO. This is calculated by dividing AUTO's market cap by their current earnings.
What is AUTO's PE Ratio?
PE Ratio23.9x
EarningsUK£282.60m
Market CapUK£6.77b

Price to Earnings Ratio vs Peers

How does AUTO's PE Ratio compare to its peers?

The above table shows the PE ratio for AUTO vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average63.1x
RMV Rightmove
27.1x9.84%UK£5.5b
BCG Baltic Classifieds Group
39.6x16.61%UK£1.5b
MONY MONY Group
12.7x7.09%UK£1.0b
TRST Trustpilot Group
172.9x39.03%UK£801.9m
AUTO Auto Trader Group
23.9x7.63%UK£6.8b

Price-To-Earnings vs Peers: AUTO is good value based on its Price-To-Earnings Ratio (23.9x) compared to the peer average (63.1x).

Price to Earnings Ratio vs Industry

How does AUTO's PE Ratio compare vs other companies in the European Interactive Media and Services Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
AUTO 23.9xIndustry Avg. 29.2xNo. of Companies5PE020406080100+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: AUTO is good value based on its Price-To-Earnings Ratio (23.9x) compared to the European Interactive Media and Services industry average (28.7x).

Price to Earnings Ratio vs Fair Ratio

What is AUTO's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

AUTO PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio23.9x
Fair PE Ratio21.5x

Price-To-Earnings vs Fair Ratio: AUTO is expensive based on its Price-To-Earnings Ratio (23.9x) compared to the estimated Fair Price-To-Earnings Ratio (21.5x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst AUTO forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£7.76
UK£8.60
+10.82%
12.32%UK£10.40UK£6.50n/a15
Aug ’26UK£8.27
UK£8.53
+3.20%
12.38%UK£10.40UK£6.50n/a16
Jul ’26UK£8.21
UK£8.48
+3.18%
13.00%UK£10.40UK£6.50n/a16
Jun ’26UK£7.94
UK£8.48
+6.84%
12.58%UK£10.40UK£6.80n/a16
May ’26UK£8.50
UK£8.54
+0.47%
12.55%UK£10.40UK£6.80n/a17
Apr ’26UK£7.57
UK£8.56
+13.03%
12.20%UK£10.40UK£6.50n/a19
Mar ’26UK£7.76
UK£8.52
+9.89%
12.76%UK£10.40UK£6.50n/a19
Feb ’26UK£7.90
UK£8.52
+7.83%
12.76%UK£10.40UK£6.50n/a19
Jan ’26UK£7.93
UK£8.47
+6.85%
12.39%UK£10.40UK£6.50n/a19
Dec ’25UK£8.39
UK£8.37
-0.22%
13.00%UK£10.40UK£6.50n/a19
Nov ’25UK£8.44
UK£8.55
+1.28%
13.71%UK£10.40UK£6.50n/a18
Oct ’25UK£8.68
UK£8.41
-3.09%
12.81%UK£10.00UK£6.50n/a18
Sep ’25UK£8.51
UK£8.23
-3.33%
13.94%UK£10.00UK£6.20UK£8.0018
Aug ’25UK£8.11
UK£8.19
+1.03%
14.61%UK£10.00UK£6.20UK£8.2718
Jul ’25UK£7.97
UK£8.10
+1.61%
14.14%UK£10.00UK£6.20UK£8.2118
Jun ’25UK£8.16
UK£7.73
-5.32%
14.73%UK£10.00UK£6.20UK£7.9420
May ’25UK£7.02
UK£7.42
+5.67%
12.57%UK£9.00UK£6.08UK£8.5020
Apr ’25UK£7.00
UK£7.33
+4.73%
12.51%UK£9.00UK£6.08UK£7.5720
Mar ’25UK£7.47
UK£7.24
-3.15%
12.61%UK£9.00UK£6.13UK£7.7619
Feb ’25UK£7.31
UK£7.23
-1.15%
12.47%UK£9.00UK£6.13UK£7.9019
Jan ’25UK£7.21
UK£7.16
-0.75%
10.91%UK£8.63UK£6.13UK£7.9320
Dec ’24UK£7.21
UK£7.10
-1.60%
11.12%UK£8.63UK£5.60UK£8.3920
Nov ’24UK£6.19
UK£6.89
+11.25%
9.98%UK£8.36UK£5.55UK£8.4418
Oct ’24UK£6.18
UK£6.91
+11.81%
9.86%UK£8.36UK£5.55UK£8.6819
Sep ’24UK£6.07
UK£6.74
+11.04%
10.76%UK£7.91UK£4.73UK£8.5121
AnalystConsensusTarget
Consensus Narrative from 15 Analysts
UK£8.60
Fair Value
9.8% undervalued intrinsic discount
15
Number of Analysts

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/09/03 07:12
End of Day Share Price 2025/09/03 00:00
Earnings2025/03/31
Annual Earnings2025/03/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Auto Trader Group plc is covered by 25 analysts. 13 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Andrew RossBarclays
Ciaran DonnellyBerenberg
William PackerBNP Paribas Exane