ACV Auctions Valuation

Is ACVA 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-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 ACVA when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ACVA ($17.72) is trading below our estimate of fair value ($60.62)

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


Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

ACVA key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue5.5x
Enterprise Value/EBITDA-33.3x
PEG Ration/a

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for ACVA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average1.1x
DRVN Driven Brands Holdings
1x7.5%US$2.4b
UNF UniFirst
1.3x4.0%US$3.1b
KAR OPENLANE
1.1x4.3%US$1.9b
VSTS Vestis
0.9x5.4%US$2.5b
ACVA ACV Auctions
6.1x21.4%US$2.9b

Price-To-Sales vs Peers: ACVA is expensive based on its Price-To-Sales Ratio (6.1x) compared to the peer average (1.1x).


Price to Earnings Ratio vs Industry

How does ACVA's PE Ratio compare vs other companies in the US Commercial Services Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a14.9%
n/an/an/a
No. of CompaniesPS048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a14.9%
n/an/an/a
No more companies

Price-To-Sales vs Industry: ACVA is expensive based on its Price-To-Sales Ratio (6.1x) compared to the US Commercial Services industry average (1.3x).


Price to Sales Ratio vs Fair Ratio

What is ACVA'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.

ACVA PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio6.1x
Fair PS Ratio1.9x

Price-To-Sales vs Fair Ratio: ACVA is expensive based on its Price-To-Sales Ratio (6.1x) compared to the estimated Fair Price-To-Sales Ratio (1.9x).


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 ACVA forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$17.72
US$21.50
+21.3%
14.4%US$28.00US$15.00n/a12
Apr ’25US$18.28
US$20.67
+13.1%
12.2%US$24.00US$15.00n/a12
Mar ’25US$17.89
US$20.67
+15.5%
12.2%US$24.00US$15.00n/a12
Feb ’25US$13.33
US$20.07
+50.6%
12.3%US$23.00US$15.00n/a14
Jan ’25US$15.15
US$20.15
+33.0%
11.5%US$23.00US$15.00n/a13
Dec ’24US$15.78
US$20.15
+27.7%
11.5%US$23.00US$15.00n/a13
Nov ’24US$13.44
US$20.31
+51.1%
13.2%US$23.00US$15.00n/a13
Oct ’24US$15.18
US$21.00
+38.3%
11.0%US$23.00US$15.00n/a12
Sep ’24US$16.87
US$21.00
+24.5%
10.6%US$23.00US$15.00n/a13
Aug ’24US$17.64
US$20.15
+14.3%
12.0%US$23.00US$15.00n/a13
Jul ’24US$17.27
US$19.23
+11.4%
14.4%US$23.00US$14.00n/a13
Jun ’24US$17.04
US$17.57
+3.1%
9.6%US$20.00US$14.00n/a14
May ’24US$13.47
US$14.68
+9.0%
12.8%US$18.00US$11.00n/a14
Apr ’24US$12.91
US$14.61
+13.1%
12.1%US$17.00US$11.00US$18.2814
Mar ’24US$11.83
US$14.46
+22.3%
12.0%US$17.00US$11.00US$17.8914
Feb ’24US$10.29
US$12.93
+25.6%
12.9%US$15.00US$10.00US$13.3314
Jan ’24US$8.21
US$12.79
+55.7%
12.9%US$15.00US$10.00US$15.1514
Dec ’23US$8.88
US$12.79
+44.0%
12.9%US$15.00US$10.00US$15.7814
Nov ’23US$9.04
US$15.46
+71.1%
25.6%US$22.50US$10.00US$13.4414
Oct ’23US$7.19
US$15.68
+118.1%
25.3%US$22.50US$10.00US$15.1814
Sep ’23US$8.39
US$15.46
+84.3%
27.3%US$22.50US$9.00US$16.8714
Aug ’23US$7.29
US$17.36
+138.1%
30.9%US$28.00US$9.00US$17.6414
Jul ’23US$6.49
US$17.93
+176.2%
26.5%US$28.00US$10.00US$17.2714
Jun ’23US$8.61
US$19.15
+122.5%
21.8%US$28.00US$14.00US$17.0413
May ’23US$13.35
US$26.23
+96.5%
21.6%US$35.00US$19.00US$13.4713
Apr ’23US$15.15
US$26.77
+76.7%
22.8%US$35.00US$19.00US$12.9113

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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