Group 1 Automotive, Inc.

NYSE:GPI Stock Report

Market Cap: US$5.5b

Group 1 Automotive Valuation

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

Below Fair Value: GPI ($421.14) is trading below our estimate of fair value ($814.68)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for GPI. This is calculated by dividing GPI's market cap by their current earnings.
What is GPI's PE Ratio?
PE Ratio10.9x
EarningsUS$500.00m
Market CapUS$5.47b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for GPI vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average15x
ABG Asbury Automotive Group
14.3x19.6%US$5.1b
AN AutoNation
9.5x6.9%US$6.8b
VVV Valvoline
23.1x5.0%US$5.0b
LAD Lithia Motors
13x13.3%US$10.4b
GPI Group 1 Automotive
10.9x7.8%US$5.5b

Price-To-Earnings vs Peers: GPI is good value based on its Price-To-Earnings Ratio (10.9x) compared to the peer average (15x).

Price to Earnings Ratio vs Industry

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

5 CompaniesPrice / EarningsEstimated GrowthMarket Cap
TKLF Tokyo Lifestyle
1.9xn/aUS$14.10m
MASN Maison Luxe
0.08xn/aUS$144.03k
FTCH.Q Farfetch
n/an/aUS$395.00
EXPR.Q Express
0.000002xn/aUS$374.00
GPI 10.9xIndustry Avg. 17.2xNo. of Companies10PE01224364860+
5 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: GPI is good value based on its Price-To-Earnings Ratio (10.9x) compared to the US Specialty Retail industry average (17.2x).

Price to Earnings Ratio vs Fair Ratio

What is GPI'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.

GPI PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio10.9x
Fair PE Ratio14.7x

Price-To-Earnings vs Fair Ratio: GPI is good value based on its Price-To-Earnings Ratio (10.9x) compared to the estimated Fair Price-To-Earnings Ratio (14.7x).

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 GPI forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$421.14
US$437.13
+3.8%
11.0%US$495.00US$333.00n/a8
Nov ’25US$362.34
US$413.75
+14.2%
8.6%US$455.00US$333.00n/a8
Oct ’25US$378.79
US$401.38
+6.0%
9.7%US$450.00US$312.00n/a8
Sep ’25US$376.76
US$373.14
-1.0%
14.6%US$450.00US$285.00n/a7
Aug ’25US$355.06
US$353.14
-0.5%
16.7%US$435.00US$260.00n/a7
Jul ’25US$296.99
US$340.86
+14.8%
16.1%US$445.00US$260.00n/a7
Jun ’25US$310.98
US$340.86
+9.6%
16.1%US$445.00US$260.00n/a7
May ’25US$293.71
US$323.55
+10.2%
16.4%US$445.00US$255.00n/a8
Apr ’25US$289.48
US$322.77
+11.5%
15.6%US$425.00US$255.00n/a7
Mar ’25US$272.23
US$325.00
+19.4%
16.7%US$425.00US$255.00n/a6
Feb ’25US$269.16
US$324.38
+20.5%
21.2%US$455.00US$200.00n/a8
Jan ’25US$304.74
US$320.00
+5.0%
22.4%US$455.00US$200.00n/a7
Dec ’24US$291.18
US$320.00
+9.9%
22.4%US$455.00US$200.00n/a7
Nov ’24US$261.41
US$320.00
+22.4%
22.0%US$450.00US$200.00US$362.347
Oct ’24US$268.71
US$311.43
+15.9%
23.4%US$450.00US$200.00US$378.797
Sep ’24US$270.74
US$310.71
+14.8%
23.5%US$450.00US$200.00US$376.767
Aug ’24US$261.26
US$301.29
+15.3%
29.6%US$450.00US$134.00US$355.067
Jul ’24US$258.10
US$277.86
+7.7%
29.7%US$430.00US$134.00US$296.997
Jun ’24US$222.03
US$277.86
+25.1%
29.7%US$430.00US$134.00US$310.987
May ’24US$227.49
US$277.86
+22.1%
29.7%US$430.00US$134.00US$293.717
Apr ’24US$226.42
US$271.43
+19.9%
27.8%US$400.00US$134.00US$289.487
Mar ’24US$228.66
US$271.43
+18.7%
27.8%US$400.00US$134.00US$272.237
Feb ’24US$223.97
US$259.86
+16.0%
25.1%US$345.00US$134.00US$269.167
Jan ’24US$180.37
US$263.14
+45.9%
26.1%US$375.00US$142.00US$304.747
Dec ’23US$190.55
US$263.14
+38.1%
26.1%US$375.00US$142.00US$291.187
Nov ’23US$178.37
US$260.71
+46.2%
24.9%US$358.00US$142.00US$261.417

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

Discover undervalued companies

Pets at Home Group

UK£1.3b

Engages in the specialist omnichannel retailing of pet food, pet related products, and pet accessories in the United Kingdom.

PAHG.F

UK£3.99

7D

0%

1Y

-5.0%

1-800-FLOWERS.COM

US$500.6m

Provides gifts for various occasions in the United States and internationally.

FLWS

US$7.84

7D

0.5%

1Y

-10.9%

Nordstrom

US$3.8b

A fashion retailer, provides apparels, shoes, beauty, accessories, and home goods for women, men, young adults, and children.

JWN

US$23.24

7D

1.6%

1Y

54.4%