ABG Valuation

Asbury Automotive Group Inc

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245.450

+2.63(1.083%)1D

Overview
Forecast
Valuation
Earnings

ABG Relative Valuation

ABG'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, ABG is overvalued; if below, it's undervalued.

Historical Valuation

Asbury Automotive Group Inc (ABG) is now in the Fair zone, suggesting that its current forward PE ratio of 8.88 is considered Fairly compared with the five-year average of 7.37. The fair price of Asbury Automotive Group Inc (ABG) is between 215.80 to 291.61 according to relative valuation methord.

Relative Value

Fair Zone

215.80-291.61

Current Price：242.82

Fair

8.88

Trailing

Forward

8.39

EV/EBITDA

Asbury Automotive Group Inc. (ABG) has a current EV/EBITDA of 8.39. The 5-year average EV/EBITDA is 7.82. The thresholds are as follows: Strongly Undervalued below 4.09, Undervalued between 4.09 and 5.95, Fairly Valued between 9.68 and 5.95, Overvalued between 9.68 and 11.55, and Strongly Overvalued above 11.55. The current Forward EV/EBITDA of 8.39 falls within the Historic Trend Line -Fairly Valued range.

8.60

EV/EBIT

Asbury Automotive Group Inc. (ABG) has a current EV/EBIT of 8.60. The 5-year average EV/EBIT is 8.19. The thresholds are as follows: Strongly Undervalued below 4.44, Undervalued between 4.44 and 6.31, Fairly Valued between 10.06 and 6.31, Overvalued between 10.06 and 11.94, and Strongly Overvalued above 11.94. The current Forward EV/EBIT of 8.60 falls within the Historic Trend Line -Fairly Valued range.

0.24

Asbury Automotive Group Inc. (ABG) has a current PS of 0.24. The 5-year average PS is 0.28. The thresholds are as follows: Strongly Undervalued below 0.19, Undervalued between 0.19 and 0.24, Fairly Valued between 0.33 and 0.24, Overvalued between 0.33 and 0.37, and Strongly Overvalued above 0.37. The current Forward PS of 0.24 falls within the Historic Trend Line -Fairly Valued range.

11.11

P/OCF

Asbury Automotive Group Inc. (ABG) has a current P/OCF of 11.11. The 5-year average P/OCF is 8.02. The thresholds are as follows: Strongly Undervalued below 2.74, Undervalued between 2.74 and 5.38, Fairly Valued between 10.66 and 5.38, Overvalued between 10.66 and 13.30, and Strongly Overvalued above 13.30. The current Forward P/OCF of 11.11 falls within the Overvalued range.

6.30

P/FCF

Asbury Automotive Group Inc. (ABG) has a current P/FCF of 6.30. The 5-year average P/FCF is 8.06. The thresholds are as follows: Strongly Undervalued below 1.41, Undervalued between 1.41 and 4.74, Fairly Valued between 11.39 and 4.74, Overvalued between 11.39 and 14.72, and Strongly Overvalued above 14.72. The current Forward P/FCF of 6.30 falls within the Historic Trend Line -Fairly Valued range.

Asbury Automotive Group Inc (ABG) has a current Price-to-Book (P/B) ratio of 1.26. Compared to its 3-year average P/B ratio of 1.40 , the current P/B ratio is approximately -9.99% higher. Relative to its 5-year average P/B ratio of 1.91, the current P/B ratio is about -33.73% higher. Asbury Automotive Group Inc (ABG) has a Forward Free Cash Flow (FCF) yield of approximately 16.92%. Compared to its 3-year average FCF yield of 8.34%, the current FCF yield is approximately 102.83% lower. Relative to its 5-year average FCF yield of 14.50% , the current FCF yield is about 16.63% lower.

1.26

P/B

Median3y

1.40

Median5y

1.91

16.92

FCF Yield

Median3y

8.34

Median5y

14.50

Competitors Valuation Multiple

The average P/S ratio for ABG's competitors is 0.62, providing a benchmark for relative valuation. Asbury Automotive Group Inc Corp (ABG) exhibits a P/S ratio of 0.24, which is -61.67% above the industry average. Given its robust revenue growth of 2.99%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

ABG.N

Asbury Automotive Group Inc

Bath & Body Works Inc

Advance Auto Parts Inc

0.44

-7.71%

3.60B

Performance Decomposition

Market capitalization of ABG increased by 1.77% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 0.66 to 3.49.

The secondary factor is the Revenue Growth, contributed 2.99%to the performance.

Overall, the performance of ABG in the past 1 year is driven by Margin Expansion. Which is more sustainable.

2.99%

4.25B → 4.37B

Revenue Growth

428.79%

0.66 → 3.49

Margin Expansion

-430.01%

-2.69 → 8.87

P/E Change

1.77%