Asbury Automotive Group (ABG): Assessing Valuation After Q3 Earnings Growth and Continued Buybacks

Asbury Automotive Group (ABG) caught investors’ attention after reporting higher revenue and net income for the third quarter of 2025, with earnings per share also climbing from last year. The continued share buyback program added another layer of momentum to the story.

See our latest analysis for Asbury Automotive Group.

Asbury Automotive Group’s recent earnings beat and ongoing buyback program have revived optimism, even as the stock’s short-term momentum remains muted. The 1-year total shareholder return stands at -13%, reflecting near-term challenges. The longer-term picture is strong, with a total return of 25% over three years and nearly 89% over five years. With shares trading at $226.61, the mix of robust fundamentals and capital return is keeping valuation and sentiment in focus.

If Asbury’s mix of growth and capital returns has you looking for more ideas, consider exploring See the full list for free.

The numbers show ongoing growth and capital returns, but with analyst targets only modestly higher, is Asbury Automotive Group undervalued or has the market already priced in its future momentum? Could this be a real buying opportunity?

Most Popular Narrative: 13% Undervalued

With the fair value suggested at $261.75, Asbury Automotive Group’s last close at $226.61 highlights a significant disconnect between recent market sentiment and what analysts believe the company is worth. Here is what is driving these estimates and what could keep the share price in focus.

Continued investment in digital retail via Clicklane and full rollout of the Tekion DMS are expected to drive operational efficiencies, improve employee productivity, reduce SG&A as a percent of gross profit, and increase transaction volumes, positively impacting margins and EBITDA over time.

Read the complete narrative.

Want to know what is behind this bold forecast? The valuation relies on growth projections, resilient margins, and a future profit multiple that is lower than most industry peers. Curious how analysts tie all these assumptions together to set Asbury’s fair value? The full narrative lays out the exact financial levers that could propel the stock well beyond its current price.

Result: Fair Value of $261.75 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, ongoing supply constraints in the used vehicle market and heightened leverage from recent acquisitions could challenge Asbury Automotive Group’s optimistic growth outlook.

Find out about the key risks to this Asbury Automotive Group narrative.

Build Your Own Asbury Automotive Group Narrative

If you see things differently or want to dig into the numbers yourself, you can map out your own perspective in just a few minutes. Do it your way

A great starting point for your Asbury Automotive Group research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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