AAP Relative Valuation
AAP's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, AAP is overvalued; if below, it's undervalued.
Historical Valuation
Advance Auto Parts Inc (AAP) is now in the Fair zone, suggesting that its current forward PS ratio of 0.00 is considered Fairly compared with the five-year average of 30.01. The fair price of Advance Auto Parts Inc (AAP) is between NaN to NaN according to relative valuation methord.
Relative Value
Fair Zone
NaN-NaN
Current Price：52.50
Fair
20.11
PE
1Y
3Y
5Y
Trailing
Forward
9.64
EV/EBITDA
Advance Auto Parts Inc. (AAP) has a current EV/EBITDA of 9.64. The 5-year average EV/EBITDA is 12.42. The thresholds are as follows: Strongly Undervalued below 5.66, Undervalued between 5.66 and 9.04, Fairly Valued between 15.79 and 9.04, Overvalued between 15.79 and 19.17, and Strongly Overvalued above 19.17. The current Forward EV/EBITDA of 9.64 falls within the Historic Trend Line -Fairly Valued range.
18.31
EV/EBIT
Advance Auto Parts Inc. (AAP) has a current EV/EBIT of 18.31. The 5-year average EV/EBIT is 24.16. The thresholds are as follows: Strongly Undervalued below -8.52, Undervalued between -8.52 and 7.82, Fairly Valued between 40.51 and 7.82, Overvalued between 40.51 and 56.85, and Strongly Overvalued above 56.85. The current Forward EV/EBIT of 18.31 falls within the Historic Trend Line -Fairly Valued range.
0.37
PS
Advance Auto Parts Inc. (AAP) has a current PS of 0.37. The 5-year average PS is 0.68. The thresholds are as follows: Strongly Undervalued below -0.09, Undervalued between -0.09 and 0.29, Fairly Valued between 1.07 and 0.29, Overvalued between 1.07 and 1.45, and Strongly Overvalued above 1.45. The current Forward PS of 0.37 falls within the Historic Trend Line -Fairly Valued range.
-6.35
P/OCF
Advance Auto Parts Inc. (AAP) has a current P/OCF of -6.35. The 5-year average P/OCF is 10.36. The thresholds are as follows: Strongly Undervalued below -15.73, Undervalued between -15.73 and -2.68, Fairly Valued between 23.41 and -2.68, Overvalued between 23.41 and 36.45, and Strongly Overvalued above 36.45. The current Forward P/OCF of -6.35 falls within the Undervalued range.
160.45
P/FCF
Advance Auto Parts Inc. (AAP) has a current P/FCF of 160.45. The 5-year average P/FCF is 33.12. The thresholds are as follows: Strongly Undervalued below -100.47, Undervalued between -100.47 and -33.68, Fairly Valued between 99.92 and -33.68, Overvalued between 99.92 and 166.72, and Strongly Overvalued above 166.72. The current Forward P/FCF of 160.45 falls within the Overvalued range.
Advance Auto Parts Inc (AAP) has a current Price-to-Book (P/B) ratio of 1.44. Compared to its 3-year average P/B ratio of 1.61 , the current P/B ratio is approximately -10.74% higher. Relative to its 5-year average P/B ratio of 2.51, the current P/B ratio is about -42.92% higher. Advance Auto Parts Inc (AAP) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 1.21%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 2.94% , the current FCF yield is about -100.00% lower.
1.44
P/B
Median3y
1.61
Median5y
2.51
-12.49
FCF Yield
Median3y
1.21
Median5y
2.94
Competitors Valuation Multiple
The average P/S ratio for AAP's competitors is , providing a benchmark for relative valuation. Advance Auto Parts Inc Corp (AAP) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of -5.21%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of AAP increased by 12.50% over the past 1 year. The primary factor behind the change was an decrease in P/E Change from -2.57 to -5.50.
The secondary factor is the Revenue Growth, contributed -5.21%to the performance.
Overall, the performance of AAP in the past 1 year is driven by P/E Change. Which is more unsustainable.
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FAQ
Is Advance Auto Parts Inc (AAP) currently overvalued or undervalued?
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