AutoNation Valuation

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

Below Fair Value: AN ($164.27) is trading below our estimate of fair value ($242.75)

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


Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for AN. This is calculated by dividing AN's market cap by their current earnings.
What is AN's PE Ratio?
PE Ratio9x
EarningsUS$722.30m
Market CapUS$6.53b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for AN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average18.1x
VVV Valvoline
27.2x12.1%US$5.5b
GPI Group 1 Automotive
10.5x7.8%US$5.4b
ABG Asbury Automotive Group
14x19.6%US$5.1b
MUSA Murphy USA
20.7x7.2%US$10.7b
AN AutoNation
9x7.2%US$6.5b

Price-To-Earnings vs Peers: AN is good value based on its Price-To-Earnings Ratio (9x) compared to the peer average (18.1x).


Price to Earnings Ratio vs Industry

How does AN'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
AN 9.0xIndustry Avg. 15.6xNo. of Companies11PE01224364860+
5 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: AN is good value based on its Price-To-Earnings Ratio (9x) compared to the US Specialty Retail industry average (15.8x).


Price to Earnings Ratio vs Fair Ratio

What is AN'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.

AN PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio9x
Fair PE Ratio14.9x

Price-To-Earnings vs Fair Ratio: AN is good value based on its Price-To-Earnings Ratio (9x) compared to the estimated Fair Price-To-Earnings Ratio (14.9x).


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 AN forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$164.27
US$194.55
+18.4%
7.4%US$220.00US$169.00n/a11
Nov ’25US$156.25
US$195.91
+25.4%
7.1%US$220.00US$169.00n/a11
Oct ’25US$178.10
US$199.82
+12.2%
6.5%US$220.00US$180.00n/a11
Sep ’25US$177.98
US$190.30
+6.9%
12.2%US$220.00US$145.00n/a10
Aug ’25US$183.95
US$190.10
+3.3%
12.5%US$220.00US$145.00n/a10
Jul ’25US$161.88
US$181.80
+12.3%
13.1%US$220.00US$145.00n/a10
Jun ’25US$170.25
US$179.80
+5.6%
11.7%US$211.00US$145.00n/a10
May ’25US$162.85
US$176.64
+8.5%
12.8%US$211.00US$140.00n/a11
Apr ’25US$164.76
US$169.55
+2.9%
14.2%US$220.00US$140.00n/a11
Mar ’25US$151.98
US$168.40
+10.8%
14.8%US$220.00US$140.00n/a10
Feb ’25US$145.63
US$170.33
+17.0%
20.6%US$255.00US$117.00n/a12
Jan ’25US$150.18
US$166.50
+10.9%
21.9%US$255.00US$117.00n/a10
Dec ’24US$140.13
US$166.50
+18.8%
21.9%US$255.00US$117.00n/a10
Nov ’24US$132.95
US$166.60
+25.3%
20.0%US$245.00US$117.00US$156.2510
Oct ’24US$151.40
US$175.11
+15.7%
18.8%US$245.00US$117.00US$178.109
Sep ’24US$160.66
US$172.60
+7.4%
18.6%US$245.00US$117.00US$177.9810
Aug ’24US$159.98
US$171.40
+7.1%
20.0%US$245.00US$105.00US$183.9510
Jul ’24US$164.61
US$159.90
-2.9%
21.0%US$225.00US$96.00US$161.8810
Jun ’24US$131.58
US$159.90
+21.5%
21.0%US$225.00US$96.00US$170.2510
May ’24US$136.99
US$159.90
+16.7%
21.0%US$225.00US$96.00US$162.8510
Apr ’24US$134.36
US$160.50
+19.5%
18.6%US$205.00US$96.00US$164.7610
Mar ’24US$137.24
US$159.20
+16.0%
18.9%US$205.00US$96.00US$151.9810
Feb ’24US$130.00
US$146.00
+12.3%
23.7%US$210.00US$96.00US$145.6310
Jan ’24US$107.30
US$148.50
+38.4%
27.0%US$238.00US$104.00US$150.1810
Dec ’23US$121.17
US$148.50
+22.6%
27.0%US$238.00US$104.00US$140.1310
Nov ’23US$111.75
US$148.50
+32.9%
27.0%US$238.00US$104.00US$132.9510

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


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