AutoCanada Inc.

TSX:ACQ Stock Report

Market Cap: CA$437.5m

AutoCanada Valuation

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

Valuation Score

5/6

Valuation Score 5/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

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

Below Fair Value: ACQ (CA$18.79) is trading below our estimate of fair value (CA$94.3)

Significantly Below Fair Value: ACQ is trading below fair value by more than 20%.

Key Valuation Metric

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

Key metric: As ACQ is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for ACQ. This is calculated by dividing ACQ's market cap by their current revenue.
What is ACQ's PS Ratio?
PS Ratio0.07x
SalesCA$6.13b
Market CapCA$437.54m

Price to Sales Ratio vs Peers

How does ACQ's PS Ratio compare to its peers?

The above table shows the PS ratio for ACQ vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average3x
DIV Diversified Royalty
7.7x3.2%CA$494.5m
GBT BMTC Group
0.8xn/aCA$442.5m
KITS Kits Eyecare
1.9x18.5%CA$279.5m
PET Pet Valu Holdings
1.7x6.6%CA$1.9b
ACQ AutoCanada
0.07x2.5%CA$437.5m

Price-To-Sales vs Peers: ACQ is good value based on its Price-To-Sales Ratio (0.1x) compared to the peer average (3x).

Price to Sales Ratio vs Industry

How does ACQ's PS Ratio compare vs other companies in the CA Specialty Retail Industry?

6 CompaniesPrice / SalesEstimated GrowthMarket Cap
Industry Avg.0.5x9.0%
ACQ AutoCanada
 0.07x2.5%US$310.55m
IDG Indigo Books & Music
0.07x-1.6%US$50.59m
FAF Fire & Flower Holdings
0.08xn/aUS$9.91m
ACQ 0.1xIndustry Avg. 0.5xNo. of Companies6PS00.61.21.82.43+
6 CompaniesEstimated GrowthMarket Cap
Industry Avg.0.5x41.6%
ACQ AutoCanada
 0.07x96.5%US$310.55m
No more companies

Price-To-Sales vs Industry: ACQ is good value based on its Price-To-Sales Ratio (0.1x) compared to the North American Specialty Retail industry average (0.5x).

Price to Sales Ratio vs Fair Ratio

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

ACQ PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.07x
Fair PS Ratio0.3x

Price-To-Sales vs Fair Ratio: ACQ is good value based on its Price-To-Sales Ratio (0.1x) compared to the estimated Fair Price-To-Sales Ratio (0.3x).

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 ACQ forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCA$18.79
CA$18.88
+0.5%
16.2%CA$25.00CA$15.00n/a8
Nov ’25CA$15.04
CA$18.57
+23.4%
13.2%CA$22.60CA$15.00n/a9
Oct ’25CA$16.18
CA$18.79
+16.1%
13.2%CA$22.60CA$15.00n/a9
Sep ’25CA$14.86
CA$18.79
+26.4%
13.2%CA$22.60CA$15.00n/a9
Aug ’25CA$19.49
CA$21.73
+11.5%
14.5%CA$28.50CA$18.00n/a9
Jul ’25CA$19.23
CA$21.73
+13.0%
14.5%CA$28.50CA$18.00n/a9
Jun ’25CA$20.50
CA$21.73
+6.0%
14.5%CA$28.50CA$18.00n/a9
May ’25CA$24.39
CA$29.06
+19.1%
42.6%CA$62.00CA$20.00n/a9
Apr ’25CA$26.47
CA$28.72
+8.5%
43.6%CA$62.00CA$20.00n/a9
Mar ’25CA$21.43
CA$29.78
+39.0%
40.4%CA$62.00CA$22.00n/a9
Feb ’25CA$21.28
CA$29.89
+40.5%
40.0%CA$62.00CA$22.00n/a9
Jan ’25CA$22.90
CA$29.53
+28.9%
40.3%CA$62.00CA$22.00n/a9
Dec ’24CA$19.16
CA$29.31
+53.0%
41.0%CA$62.00CA$22.00n/a9
Nov ’24CA$24.02
CA$31.50
+31.1%
43.7%CA$70.00CA$22.00CA$15.0410
Oct ’24CA$24.28
CA$31.50
+29.7%
43.7%CA$70.00CA$22.00CA$16.1810
Sep ’24CA$27.10
CA$31.50
+16.2%
43.7%CA$70.00CA$22.00CA$14.8610
Aug ’24CA$22.52
CA$26.35
+17.0%
50.4%CA$65.00CA$18.00CA$19.4910
Jul ’24CA$19.22
CA$26.35
+37.1%
50.4%CA$65.00CA$18.00CA$19.2310
Jun ’24CA$17.61
CA$26.35
+49.6%
50.4%CA$65.00CA$18.00CA$20.5010
May ’24CA$20.51
CA$35.31
+72.1%
46.2%CA$80.00CA$25.00CA$24.399
Apr ’24CA$19.88
CA$36.31
+82.6%
43.6%CA$80.00CA$26.00CA$26.479
Mar ’24CA$29.44
CA$39.65
+34.7%
38.7%CA$80.00CA$27.00CA$21.439
Feb ’24CA$27.93
CA$39.20
+40.4%
40.1%CA$80.00CA$24.00CA$21.289
Jan ’24CA$23.31
CA$40.43
+73.4%
45.9%CA$90.00CA$24.00CA$22.909
Dec ’23CA$26.62
CA$42.76
+60.6%
42.0%CA$90.00CA$28.00CA$19.169
Nov ’23CA$22.30
CA$45.69
+104.9%
38.9%CA$90.00CA$25.00CA$24.029

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

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