AAP PE Ratio & Valuation,Is AAP Overvalued

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 Undervalued zone, suggesting that its current forward PS ratio of 0.32 is considered Undervalued compared with the five-year average of 30.02. The fair price of Advance Auto Parts Inc (AAP) is between 68.03 to 156.17 according to relative valuation methord. Compared to the current price of 45.60 USD , Advance Auto Parts Inc is Undervalued By 32.97%.

Relative Value

Fair Zone

68.03-156.17

Current Price：45.60

32.97%

Undervalued

17.86

8.98

EV/EBITDA

Advance Auto Parts Inc. (AAP) has a current EV/EBITDA of 8.98. The 5-year average EV/EBITDA is 12.40. The thresholds are as follows: Strongly Undervalued below 5.64, Undervalued between 5.64 and 9.02, Fairly Valued between 15.79 and 9.02, Overvalued between 15.79 and 19.17, and Strongly Overvalued above 19.17. The current Forward EV/EBITDA of 8.98 falls within the Undervalued range.

17.05

EV/EBIT

Advance Auto Parts Inc. (AAP) has a current EV/EBIT of 17.05. The 5-year average EV/EBIT is 24.18. The thresholds are as follows: Strongly Undervalued below -8.48, Undervalued between -8.48 and 7.85, Fairly Valued between 40.50 and 7.85, Overvalued between 40.50 and 56.83, and Strongly Overvalued above 56.83. The current Forward EV/EBIT of 17.05 falls within the Historic Trend Line -Fairly Valued range.

0.32

Advance Auto Parts Inc. (AAP) has a current PS of 0.32. The 5-year average PS is 0.68. The thresholds are as follows: Strongly Undervalued below -0.10, Undervalued between -0.10 and 0.29, Fairly Valued between 1.06 and 0.29, Overvalued between 1.06 and 1.45, and Strongly Overvalued above 1.45. The current Forward PS of 0.32 falls within the Historic Trend Line -Fairly Valued range.

-5.49

P/OCF

Advance Auto Parts Inc. (AAP) has a current P/OCF of -5.49. The 5-year average P/OCF is 10.27. The thresholds are as follows: Strongly Undervalued below -15.92, Undervalued between -15.92 and -2.82, Fairly Valued between 23.37 and -2.82, Overvalued between 23.37 and 36.47, and Strongly Overvalued above 36.47. The current Forward P/OCF of -5.49 falls within the Undervalued range.

138.99

P/FCF

Advance Auto Parts Inc. (AAP) has a current P/FCF of 138.99. The 5-year average P/FCF is 33.85. The thresholds are as follows: Strongly Undervalued below -100.78, Undervalued between -100.78 and -33.46, Fairly Valued between 101.16 and -33.46, Overvalued between 101.16 and 168.47, and Strongly Overvalued above 168.47. The current Forward P/FCF of 138.99 falls within the Overvalued range.

Advance Auto Parts Inc (AAP) has a current Price-to-Book (P/B) ratio of 1.27. Compared to its 3-year average P/B ratio of 1.59 , the current P/B ratio is approximately -20.25% higher. Relative to its 5-year average P/B ratio of 2.51, the current P/B ratio is about -49.46% higher. Advance Auto Parts Inc (AAP) has a Forward Free Cash Flow (FCF) yield of approximately -14.41%. Compared to its 3-year average FCF yield of 1.06%, the current FCF yield is approximately -1466.14% lower. Relative to its 5-year average FCF yield of 2.83% , the current FCF yield is about -609.95% lower.

1.27

P/B

Median3y

1.59

Median5y

2.51

-14.41

FCF Yield

Median3y

1.06

Median5y

2.83

Competitors Valuation Multiple

The average P/S ratio for AAP's competitors is 1.06, providing a benchmark for relative valuation. Advance Auto Parts Inc Corp (AAP) exhibits a P/S ratio of 0.32, which is -69.99% above the industry average. Given its robust revenue growth of -5.21%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of AAP decreased by 0.63% over the past 1 year. The primary factor behind the change was an decrease in P/E Change from -2.42 to -4.85.

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.

-5.21%

2.15B → 2.04B

Revenue Growth

-95.76%

-1.18 → -0.05

Margin Expansion

100.34%

-2.42 → -4.85

P/E Change

-0.63%

46.66 → 46.37

Mkt Cap Growth

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Frequently Asked Questions

Is Advance Auto Parts Inc (AAP) currently overvalued or undervalued?

What is Advance Auto Parts Inc (AAP) fair value?

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. The fair price of Advance Auto Parts Inc (AAP) is between 68.03 to 156.17 according to relative valuation methord.

How does AAP's valuation metrics compare to the industry average?

What is the current P/B ratio for Advance Auto Parts Inc (AAP) as of Dec 15 2025?

As of Dec 15 2025, Advance Auto Parts Inc (AAP) has a P/B ratio of 1.27. This indicates that the market values AAP at 1.27 times its book value.

What is the current FCF Yield for Advance Auto Parts Inc (AAP) as of Dec 15 2025?

As of Dec 15 2025, Advance Auto Parts Inc (AAP) has a FCF Yield of -14.41%. This means that for every dollar of Advance Auto Parts Inc’s market capitalization, the company generates -14.41 cents in free cash flow.

What is the current Forward P/E ratio for Advance Auto Parts Inc (AAP) as of Dec 15 2025?

As of Dec 15 2025, Advance Auto Parts Inc (AAP) has a Forward P/E ratio of 17.86. This means the market is willing to pay $17.86 for every dollar of Advance Auto Parts Inc’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for Advance Auto Parts Inc (AAP) as of Dec 15 2025?

As of Dec 15 2025, Advance Auto Parts Inc (AAP) has a Forward P/S ratio of 0.32. This means the market is valuing AAP at $0.32 for every dollar of expected revenue over the next 12 months.

AAP Valuation