Arko Corp.

NasdaqCM:ARKO Stock Report

Market Cap: US$759.5m

Arko Valuation

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

Valuation Score

0/6

Valuation Score 0/6

  • 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 ARKO when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ARKO ($6.52) is trading above our estimate of fair value ($0.59)

Significantly Below Fair Value: ARKO is trading above our estimate of fair value.

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for ARKO. This is calculated by dividing ARKO's market cap by their current earnings.
What is ARKO's PE Ratio?
PE Ratio40.9x
EarningsUS$18.47m
Market CapUS$759.46m

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for ARKO vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average30.5x
MNRO Monro
33.2x17.6%US$871.2m
SAH Sonic Automotive
11.1x10.7%US$2.2b
AAP Advance Auto Parts
50.5x49.3%US$2.2b
VVV Valvoline
27.2x12.1%US$5.5b
ARKO Arko
40.9x31.6%US$759.5m

Price-To-Earnings vs Peers: ARKO is expensive based on its Price-To-Earnings Ratio (40.9x) compared to the peer average (30.5x).

Price to Earnings Ratio vs Industry

How does ARKO's PE Ratio compare vs other companies in the US Specialty Retail Industry?

5 CompaniesPrice / EarningsEstimated GrowthMarket Cap
TKLF Tokyo Lifestyle
1.7xn/aUS$11.23m
SSOK Sunstock
1.8xn/aUS$771.79k
MASN Maison Luxe
0.08xn/aUS$144.03k
EXPR.Q Express
0.000002xn/aUS$11.24k
ARKO 40.9xIndustry Avg. 15.6xNo. of Companies11PE01224364860+
5 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: ARKO is expensive based on its Price-To-Earnings Ratio (40.9x) compared to the US Specialty Retail industry average (15.8x).

Price to Earnings Ratio vs Fair Ratio

What is ARKO'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.

ARKO PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio40.9x
Fair PE Ratio18.1x

Price-To-Earnings vs Fair Ratio: ARKO is expensive based on its Price-To-Earnings Ratio (40.9x) compared to the estimated Fair Price-To-Earnings Ratio (18.1x).

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 ARKO forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$6.52
US$7.94
+21.7%
25.4%US$11.00US$6.00n/a4
Nov ’25US$6.66
US$7.94
+19.2%
25.4%US$11.00US$6.00n/a4
Oct ’25US$6.90
US$7.95
+15.2%
22.7%US$11.00US$6.00n/a5
Sep ’25US$6.26
US$7.95
+27.0%
22.7%US$11.00US$6.00n/a5
Aug ’25US$6.42
US$7.90
+23.1%
27.3%US$11.00US$5.00n/a5
Jul ’25US$5.77
US$7.90
+36.9%
27.3%US$11.00US$5.00n/a5
Jun ’25US$6.00
US$7.90
+31.7%
27.3%US$11.00US$5.00n/a5
May ’25US$4.19
US$8.30
+98.1%
27.9%US$12.00US$5.00n/a5
Apr ’25US$5.77
US$8.70
+50.8%
21.1%US$12.00US$7.00n/a5
Mar ’25US$6.50
US$8.70
+33.8%
21.1%US$12.00US$7.00n/a5
Feb ’25US$7.99
US$10.25
+28.3%
18.0%US$13.00US$7.75n/a6
Jan ’25US$8.25
US$10.25
+24.2%
18.0%US$13.00US$7.75n/a6
Dec ’24US$7.69
US$10.25
+33.3%
18.0%US$13.00US$7.75n/a6
Nov ’24US$7.57
US$10.63
+40.4%
14.1%US$13.00US$8.00US$6.666
Oct ’24US$7.15
US$10.63
+48.6%
14.1%US$13.00US$8.00US$6.906
Sep ’24US$7.57
US$10.63
+40.4%
14.1%US$13.00US$8.00US$6.266
Aug ’24US$8.08
US$10.35
+28.1%
17.4%US$13.00US$7.50US$6.425
Jul ’24US$7.95
US$10.35
+30.2%
17.4%US$13.00US$7.50US$5.775
Jun ’24US$7.13
US$10.35
+45.2%
17.4%US$13.00US$7.50US$6.005
May ’24US$8.39
US$11.95
+42.4%
14.0%US$13.50US$8.75US$4.195
Apr ’24US$8.49
US$11.95
+40.8%
14.0%US$13.50US$8.75US$5.775
Mar ’24US$8.27
US$11.60
+40.3%
16.4%US$13.75US$8.75US$6.505
Feb ’24US$8.30
US$11.70
+41.0%
15.0%US$13.75US$9.25US$7.995
Jan ’24US$8.66
US$12.13
+40.0%
14.2%US$13.75US$9.25US$8.254
Dec ’23US$9.18
US$12.13
+32.1%
14.2%US$13.75US$9.25US$7.694
Nov ’23US$10.33
US$12.06
+16.8%
15.1%US$13.75US$9.00US$7.574

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.

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