AN Valuation

AutoNation Inc

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199.870

+4.15(2.120%)1D

AN Relative Valuation

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

Historical Valuation

AutoNation Inc (AN) is now in the Fair zone, suggesting that its current forward PE ratio of 9.92 is considered Fairly compared with the five-year average of 7.49. The fair price of AutoNation Inc (AN) is between 135.03 to 203.21 according to relative valuation methord.

Relative Value

Fair Zone

135.03-203.21

Current Price：199.87

Fair

9.92

Trailing

Forward

10.26

EV/EBITDA

AutoNation Inc. (AN) has a current EV/EBITDA of 10.26. The 5-year average EV/EBITDA is 7.60. The thresholds are as follows: Strongly Undervalued below 4.05, Undervalued between 4.05 and 5.83, Fairly Valued between 9.38 and 5.83, Overvalued between 9.38 and 11.16, and Strongly Overvalued above 11.16. The current Forward EV/EBITDA of 10.26 falls within the Overvalued range.

12.29

EV/EBIT

AutoNation Inc. (AN) has a current EV/EBIT of 12.29. The 5-year average EV/EBIT is 8.86. The thresholds are as follows: Strongly Undervalued below 4.06, Undervalued between 4.06 and 6.46, Fairly Valued between 11.25 and 6.46, Overvalued between 11.25 and 13.65, and Strongly Overvalued above 13.65. The current Forward EV/EBIT of 12.29 falls within the Overvalued range.

199.87

AutoNation Inc. (AN) has a current PS of 199.87. The 5-year average PS is 1.06. The thresholds are as follows: Strongly Undervalued below -23.94, Undervalued between -23.94 and -11.44, Fairly Valued between 13.55 and -11.44, Overvalued between 13.55 and 26.05, and Strongly Overvalued above 26.05. The current Forward PS of 199.87 falls within the Strongly Overvalued range.

7.50

P/OCF

AutoNation Inc. (AN) has a current P/OCF of 7.50. The 5-year average P/OCF is 7.38. The thresholds are as follows: Strongly Undervalued below 1.83, Undervalued between 1.83 and 4.61, Fairly Valued between 10.15 and 4.61, Overvalued between 10.15 and 12.93, and Strongly Overvalued above 12.93. The current Forward P/OCF of 7.50 falls within the Historic Trend Line -Fairly Valued range.

11.33

P/FCF

AutoNation Inc. (AN) has a current P/FCF of 11.33. The 5-year average P/FCF is 9.02. The thresholds are as follows: Strongly Undervalued below 4.00, Undervalued between 4.00 and 6.51, Fairly Valued between 11.53 and 6.51, Overvalued between 11.53 and 14.04, and Strongly Overvalued above 14.04. The current Forward P/FCF of 11.33 falls within the Historic Trend Line -Fairly Valued range.

AutoNation Inc (AN) has a current Price-to-Book (P/B) ratio of 2.93. Compared to its 3-year average P/B ratio of 2.97 , the current P/B ratio is approximately -1.35% higher. Relative to its 5-year average P/B ratio of 2.85, the current P/B ratio is about 2.96% higher. AutoNation Inc (AN) has a Forward Free Cash Flow (FCF) yield of approximately -2.44%. Compared to its 3-year average FCF yield of 5.83%, the current FCF yield is approximately -141.95% lower. Relative to its 5-year average FCF yield of 10.91% , the current FCF yield is about -122.41% lower.

2.93

P/B

Median3y

2.97

Median5y

2.85

-2.44

FCF Yield

Median3y

5.83

Median5y

10.91

Competitors Valuation Multiple

The average P/S ratio for AN's competitors is 187.71, providing a benchmark for relative valuation. AutoNation Inc Corp (AN) exhibits a P/S ratio of 199.87, which is 6.48% above the industry average. Given its robust revenue growth of 6.85%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Bath & Body Works Inc

Performance Decomposition

Market capitalization of AN increased by 11.73% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 2.82 to 3.06.

The secondary factor is the Revenue Growth, contributed 6.85%to the performance.

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

6.85%

6.59B → 7.04B

Revenue Growth

8.51%

2.82 → 3.06

Margin Expansion

-3.63%

12.20 → 11.76

P/E Change

11.73%