Intrinsic value of Advance Auto Parts - AAP

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$119.74

  Intrinsic Value

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  Value-price divergence*

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$119.74

 
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*Intrinsic value change (in %) minus stock price change (in %) in the past 12 months.

We calculate the intrinsic value of AAP stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 2016), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 8.8

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2016(a)
   2017
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  -1.74
  2.00
  2.30
  2.57
  2.81
  3.03
  3.23
  3.41
  3.57
  3.71
  3.84
  3.95
  4.06
  4.15
  4.24
  4.31
  4.38
  4.44
  4.50
  4.55
  4.59
  4.64
  4.67
  4.70
  4.73
  4.76
  4.78
  4.81
  4.83
  4.84
  4.86
Revenue, $m
  9,568
  9,932
  10,160
  10,421
  10,714
  11,039
  11,396
  11,784
  12,204
  12,656
  13,142
  13,662
  14,216
  14,807
  15,434
  16,100
  16,805
  17,552
  18,342
  19,177
  20,058
  20,987
  21,968
  23,001
  24,090
  25,237
  26,445
  27,716
  29,053
  30,460
  31,940
Variable operating expenses, $m
 
  7,516
  7,687
  7,882
  8,101
  8,343
  8,610
  8,900
  9,213
  9,551
  9,914
  10,203
  10,617
  11,058
  11,527
  12,024
  12,551
  13,109
  13,699
  14,322
  14,980
  15,674
  16,407
  17,178
  17,992
  18,848
  19,750
  20,699
  21,698
  22,749
  23,854
Fixed operating expenses, $m
 
  1,618
  1,659
  1,700
  1,743
  1,786
  1,831
  1,877
  1,924
  1,972
  2,021
  2,072
  2,124
  2,177
  2,231
  2,287
  2,344
  2,403
  2,463
  2,524
  2,587
  2,652
  2,718
  2,786
  2,856
  2,927
  3,001
  3,076
  3,152
  3,231
  3,312
Total operating expenses, $m
  8,780
  9,134
  9,346
  9,582
  9,844
  10,129
  10,441
  10,777
  11,137
  11,523
  11,935
  12,275
  12,741
  13,235
  13,758
  14,311
  14,895
  15,512
  16,162
  16,846
  17,567
  18,326
  19,125
  19,964
  20,848
  21,775
  22,751
  23,775
  24,850
  25,980
  27,166
Operating income, $m
  788
  797
  814
  839
  871
  909
  955
  1,007
  1,067
  1,133
  1,207
  1,387
  1,475
  1,572
  1,676
  1,789
  1,910
  2,041
  2,181
  2,330
  2,490
  2,661
  2,843
  3,037
  3,243
  3,462
  3,694
  3,941
  4,203
  4,480
  4,774
EBITDA, $m
  1,046
  1,083
  1,105
  1,135
  1,172
  1,217
  1,269
  1,329
  1,396
  1,471
  1,554
  1,645
  1,744
  1,851
  1,968
  2,093
  2,228
  2,372
  2,527
  2,693
  2,869
  3,057
  3,258
  3,471
  3,698
  3,938
  4,194
  4,464
  4,751
  5,055
  5,377
Interest expense (income), $m
  55
  53
  58
  64
  70
  78
  86
  95
  105
  116
  128
  140
  153
  168
  183
  199
  216
  234
  253
  273
  295
  317
  341
  366
  392
  420
  450
  481
  513
  547
  583
Earnings before tax, $m
  739
  744
  756
  775
  800
  831
  869
  912
  961
  1,017
  1,079
  1,247
  1,322
  1,404
  1,493
  1,590
  1,695
  1,807
  1,928
  2,057
  2,196
  2,344
  2,502
  2,671
  2,850
  3,041
  3,244
  3,460
  3,689
  3,933
  4,190
Tax expense, $m
  279
  201
  204
  209
  216
  224
  235
  246
  260
  275
  291
  337
  357
  379
  403
  429
  458
  488
  520
  555
  593
  633
  676
  721
  770
  821
  876
  934
  996
  1,062
  1,131
Net income, $m
  460
  543
  552
  566
  584
  607
  634
  666
  702
  742
  788
  910
  965
  1,025
  1,090
  1,161
  1,237
  1,319
  1,407
  1,502
  1,603
  1,711
  1,827
  1,950
  2,081
  2,220
  2,368
  2,526
  2,693
  2,871
  3,059

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  135
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  8,315
  8,195
  8,383
  8,598
  8,840
  9,108
  9,402
  9,723
  10,069
  10,443
  10,843
  11,272
  11,730
  12,217
  12,734
  13,284
  13,866
  14,482
  15,134
  15,822
  16,549
  17,316
  18,125
  18,978
  19,876
  20,823
  21,819
  22,868
  23,971
  25,132
  26,353
Adjusted assets (=assets-cash), $m
  8,180
  8,195
  8,383
  8,598
  8,840
  9,108
  9,402
  9,723
  10,069
  10,443
  10,843
  11,272
  11,730
  12,217
  12,734
  13,284
  13,866
  14,482
  15,134
  15,822
  16,549
  17,316
  18,125
  18,978
  19,876
  20,823
  21,819
  22,868
  23,971
  25,132
  26,353
Revenue / Adjusted assets
  1.170
  1.212
  1.212
  1.212
  1.212
  1.212
  1.212
  1.212
  1.212
  1.212
  1.212
  1.212
  1.212
  1.212
  1.212
  1.212
  1.212
  1.212
  1.212
  1.212
  1.212
  1.212
  1.212
  1.212
  1.212
  1.212
  1.212
  1.212
  1.212
  1.212
  1.212
Average production assets, $m
  2,104
  2,195
  2,245
  2,303
  2,368
  2,440
  2,518
  2,604
  2,697
  2,797
  2,904
  3,019
  3,142
  3,272
  3,411
  3,558
  3,714
  3,879
  4,054
  4,238
  4,433
  4,638
  4,855
  5,083
  5,324
  5,577
  5,844
  6,125
  6,421
  6,732
  7,059
Working capital, $m
  1,497
  1,073
  1,097
  1,125
  1,157
  1,192
  1,231
  1,273
  1,318
  1,367
  1,419
  1,475
  1,535
  1,599
  1,667
  1,739
  1,815
  1,896
  1,981
  2,071
  2,166
  2,267
  2,373
  2,484
  2,602
  2,726
  2,856
  2,993
  3,138
  3,290
  3,450
Total debt, $m
  1,043
  1,317
  1,450
  1,602
  1,772
  1,961
  2,169
  2,394
  2,639
  2,902
  3,185
  3,487
  3,809
  4,153
  4,518
  4,905
  5,315
  5,750
  6,209
  6,695
  7,207
  7,748
  8,318
  8,920
  9,553
  10,220
  10,922
  11,662
  12,440
  13,258
  14,119
Total liabilities, $m
  5,399
  5,777
  5,910
  6,062
  6,232
  6,421
  6,629
  6,854
  7,099
  7,362
  7,645
  7,947
  8,269
  8,613
  8,978
  9,365
  9,775
  10,210
  10,669
  11,155
  11,667
  12,208
  12,778
  13,380
  14,013
  14,680
  15,382
  16,122
  16,900
  17,718
  18,579
Total equity, $m
  2,916
  2,417
  2,473
  2,537
  2,608
  2,687
  2,774
  2,868
  2,970
  3,081
  3,199
  3,325
  3,460
  3,604
  3,757
  3,919
  4,090
  4,272
  4,464
  4,668
  4,882
  5,108
  5,347
  5,599
  5,864
  6,143
  6,437
  6,746
  7,072
  7,414
  7,774
Total liabilities and equity, $m
  8,315
  8,194
  8,383
  8,599
  8,840
  9,108
  9,403
  9,722
  10,069
  10,443
  10,844
  11,272
  11,729
  12,217
  12,735
  13,284
  13,865
  14,482
  15,133
  15,823
  16,549
  17,316
  18,125
  18,979
  19,877
  20,823
  21,819
  22,868
  23,972
  25,132
  26,353
Debt-to-equity ratio
  0.358
  0.540
  0.590
  0.630
  0.680
  0.730
  0.780
  0.830
  0.890
  0.940
  1.000
  1.050
  1.100
  1.150
  1.200
  1.250
  1.300
  1.350
  1.390
  1.430
  1.480
  1.520
  1.560
  1.590
  1.630
  1.660
  1.700
  1.730
  1.760
  1.790
  1.820
Adjusted equity ratio
  0.340
  0.295
  0.295
  0.295
  0.295
  0.295
  0.295
  0.295
  0.295
  0.295
  0.295
  0.295
  0.295
  0.295
  0.295
  0.295
  0.295
  0.295
  0.295
  0.295
  0.295
  0.295
  0.295
  0.295
  0.295
  0.295
  0.295
  0.295
  0.295
  0.295
  0.295

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  460
  543
  552
  566
  584
  607
  634
  666
  702
  742
  788
  910
  965
  1,025
  1,090
  1,161
  1,237
  1,319
  1,407
  1,502
  1,603
  1,711
  1,827
  1,950
  2,081
  2,220
  2,368
  2,526
  2,693
  2,871
  3,059
Depreciation, amort., depletion, $m
  258
  286
  291
  296
  301
  307
  314
  321
  329
  338
  347
  258
  269
  280
  292
  304
  317
  332
  346
  362
  379
  396
  415
  434
  455
  477
  500
  524
  549
  575
  603
Funds from operations, $m
  262
  830
  843
  862
  885
  914
  948
  987
  1,031
  1,080
  1,135
  1,168
  1,234
  1,305
  1,382
  1,465
  1,554
  1,651
  1,754
  1,864
  1,982
  2,108
  2,241
  2,384
  2,536
  2,697
  2,868
  3,050
  3,242
  3,446
  3,662
Change in working capital, $m
  -239
  21
  25
  28
  32
  35
  38
  42
  45
  49
  52
  56
  60
  64
  68
  72
  76
  81
  85
  90
  95
  100
  106
  112
  118
  124
  130
  137
  144
  152
  160
Cash from operations, $m
  501
  779
  818
  833
  854
  879
  910
  945
  986
  1,032
  1,082
  1,112
  1,174
  1,241
  1,314
  1,393
  1,478
  1,570
  1,668
  1,774
  1,887
  2,007
  2,136
  2,272
  2,418
  2,573
  2,738
  2,912
  3,098
  3,294
  3,503
Maintenance CAPEX, $m
  0
  -184
  -188
  -192
  -197
  -202
  -209
  -215
  -223
  -231
  -239
  -248
  -258
  -269
  -280
  -292
  -304
  -317
  -332
  -346
  -362
  -379
  -396
  -415
  -434
  -455
  -477
  -500
  -524
  -549
  -575
New CAPEX, $m
  -260
  -44
  -50
  -58
  -65
  -72
  -79
  -86
  -93
  -100
  -107
  -115
  -123
  -130
  -139
  -147
  -156
  -165
  -175
  -184
  -195
  -205
  -217
  -228
  -241
  -253
  -267
  -281
  -296
  -311
  -327
Cash from investing activities, $m
  -262
  -228
  -238
  -250
  -262
  -274
  -288
  -301
  -316
  -331
  -346
  -363
  -381
  -399
  -419
  -439
  -460
  -482
  -507
  -530
  -557
  -584
  -613
  -643
  -675
  -708
  -744
  -781
  -820
  -860
  -902
Free cash flow, $m
  239
  551
  580
  584
  592
  605
  622
  644
  670
  701
  736
  749
  793
  842
  896
  954
  1,018
  1,087
  1,162
  1,243
  1,330
  1,423
  1,522
  1,629
  1,743
  1,864
  1,994
  2,132
  2,279
  2,434
  2,600
Issuance/(repayment) of debt, $m
  -166
  111
  133
  152
  171
  189
  207
  226
  244
  263
  283
  302
  323
  343
  365
  387
  410
  434
  459
  485
  513
  541
  570
  601
  633
  667
  702
  739
  778
  818
  861
Issuance/(repurchase) of shares, $m
  -14
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  -177
  111
  133
  152
  171
  189
  207
  226
  244
  263
  283
  302
  323
  343
  365
  387
  410
  434
  459
  485
  513
  541
  570
  601
  633
  667
  702
  739
  778
  818
  861
Total cash flow (excl. dividends), $m
  62
  662
  713
  736
  763
  794
  830
  870
  915
  964
  1,019
  1,051
  1,116
  1,185
  1,261
  1,342
  1,429
  1,522
  1,622
  1,728
  1,842
  1,964
  2,093
  2,230
  2,376
  2,532
  2,696
  2,871
  3,056
  3,253
  3,461
Retained Cash Flow (-), $m
  -455
  -46
  -56
  -64
  -71
  -79
  -87
  -94
  -102
  -110
  -118
  -126
  -135
  -144
  -153
  -162
  -172
  -182
  -192
  -203
  -214
  -226
  -239
  -252
  -265
  -279
  -294
  -309
  -326
  -342
  -360
Prev. year cash balance distribution, $m
 
  90
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
 
  706
  657
  672
  691
  715
  743
  776
  813
  854
  900
  925
  981
  1,042
  1,108
  1,180
  1,257
  1,340
  1,429
  1,525
  1,628
  1,737
  1,854
  1,979
  2,111
  2,252
  2,402
  2,562
  2,731
  2,910
  3,101
Discount rate, %
 
  4.30
  4.52
  4.74
  4.98
  5.23
  5.49
  5.76
  6.05
  6.35
  6.67
  7.00
  7.35
  7.72
  8.11
  8.51
  8.94
  9.39
  9.86
  10.35
  10.87
  11.41
  11.98
  12.58
  13.21
  13.87
  14.56
  15.29
  16.05
  16.86
  17.70
PV of cash for distribution, $m
 
  676
  602
  585
  569
  554
  539
  524
  508
  491
  472
  439
  418
  396
  372
  346
  319
  292
  263
  235
  207
  180
  154
  130
  108
  88
  70
  55
  42
  32
  23
Current shareholders' claim on cash, %
  100
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0

Advance Auto Parts, Inc., through its subsidiaries, provides automotive replacement parts, accessories, batteries, and maintenance items for domestic and imported cars, vans, sport utility vehicles, and light and heavy duty trucks. It offers automotive parts, including alternators, batteries, belts and hoses, brakes and brake pads, chassis parts, climate control parts, clutches, driveshafts, engines and engine parts, ignition parts, lighting products, radiators, starters, spark plugs and wires, steering and alignment parts, transmissions, water pumps, and windshield wiper blades; and accessories, such as air fresheners, automotive paints, anti-theft devices, emergency road kits, floor mats, ice scrapers, mirrors, seat and steering wheel covers, and vent shades. The company also provides chemicals comprising antifreeze, brake and power steering fluid, car wash and wax, freon, fuel additive, and windshield washer fluid products; oils, transmission fluids, and other automotive petroleum products; and battery and wiper installation, battery charging, check engine light reading, electrical system testing, video clinics, and oil and battery recycling services, as well as loaner tool programs. In addition, it sells products online through AdvanceAutoParts.com and Worldpac.com. The company serves do-it-for-me, or Commercial, and do-it-yourself customers, as well as independently-owned operators. As of July 16, 2016, it operated a total of 5,066 stores and 126 Worldpac branches; and served approximately 1,300 independently-owned Carquest stores in the United States, Puerto Rico, the U.S. Virgin Islands, and Canada. Advance Auto Parts, Inc. was founded in 1929 and is headquartered in Roanoke, Virginia.

FINANCIAL RATIOS  of  Advance Auto Parts (AAP)

Valuation Ratios
P/E Ratio 19.2
Price to Sales 0.9
Price to Book 3
Price to Tangible Book
Price to Cash Flow 17.6
Price to Free Cash Flow 36.6
Growth Rates
Sales Growth Rate -1.7%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 10.6%
Cap. Spend. - 3 Yr. Gr. Rate 5.8%
Financial Strength
Quick Ratio NaN
Current Ratio 0
LT Debt to Equity 35.8%
Total Debt to Equity 35.8%
Interest Coverage 14
Management Effectiveness
Return On Assets 6%
Ret/ On Assets - 3 Yr. Avg. 6.8%
Return On Total Capital 12.1%
Ret/ On T. Cap. - 3 Yr. Avg. 13.6%
Return On Equity 17.1%
Return On Equity - 3 Yr. Avg. 22.1%
Asset Turnover 1.2
Profitability Ratios
Gross Margin 44.5%
Gross Margin - 3 Yr. Avg. 45.1%
EBITDA Margin 11%
EBITDA Margin - 3 Yr. Avg. 11.2%
Operating Margin 8.2%
Oper. Margin - 3 Yr. Avg. 8.5%
Pre-Tax Margin 7.7%
Pre-Tax Margin - 3 Yr. Avg. 7.8%
Net Profit Margin 4.8%
Net Profit Margin - 3 Yr. Avg. 4.9%
Effective Tax Rate 37.8%
Eff/ Tax Rate - 3 Yr. Avg. 37.2%
Payout Ratio 3.9%

AAP stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the AAP stock intrinsic value calculation we used $9737 million for the last fiscal year's total revenue generated by Advance Auto Parts. The default revenue input number comes from 2016 income statement of Advance Auto Parts. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our AAP stock valuation model: a) initial revenue growth rate of 2% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 4.3%, whose default value for AAP is calculated based on our internal credit rating of Advance Auto Parts, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Advance Auto Parts.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of AAP stock the variable cost ratio is equal to 75.7%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $1579 million in the base year in the intrinsic value calculation for AAP stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 4.4% for Advance Auto Parts.

Corporate tax rate of 27% is the nominal tax rate for Advance Auto Parts. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the AAP stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for AAP are equal to 22.1%.

Life of production assets of 11.7 years is the average useful life of capital assets used in Advance Auto Parts operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for AAP is equal to 10.8%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $2461 million for Advance Auto Parts - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 73.526 million for Advance Auto Parts is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Advance Auto Parts at the current share price and the inputted number of shares is $8.8 billion.


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Stock chart of AAP Financial statements of AAP Annual reports of AAP
Valuation of Stocks

The paper VALUATION OF STOCKS: The Quest for Intrinsic Value provides a detailed description of our valuation model and discloses the calculation algorithm.

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