Intrinsic value of O'Reilly Automotive - ORLY

Previous Close

$209.86

  Intrinsic Value

$243.22

stock screener

  Rating & Target

hold

+16%

  Value-price divergence*

+18%

Previous close

$209.86

 
Intrinsic value

$243.22

 
Up/down potential

+16%

 
Rating

hold

 
Value-price divergence*

+18%

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

We calculate the intrinsic value of ORLY 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 19.0

 

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, %
  7.86
  5.20
  5.18
  5.16
  5.15
  5.13
  5.12
  5.11
  5.10
  5.09
  5.08
  5.07
  5.06
  5.06
  5.05
  5.05
  5.04
  5.04
  5.03
  5.03
  5.03
  5.02
  5.02
  5.02
  5.02
  5.02
  5.01
  5.01
  5.01
  5.01
  5.01
Revenue, $m
  8,593
  9,040
  9,508
  9,999
  10,513
  11,053
  11,619
  12,212
  12,834
  13,487
  14,172
  14,890
  15,644
  16,435
  17,265
  18,136
  19,051
  20,010
  21,017
  22,075
  23,184
  24,349
  25,572
  26,856
  28,203
  29,618
  31,103
  32,662
  34,299
  36,017
  37,822
Variable operating expenses, $m
 
  6,369
  6,695
  7,036
  7,394
  7,770
  8,163
  8,576
  9,009
  9,464
  9,940
  10,362
  10,886
  11,437
  12,014
  12,620
  13,257
  13,924
  14,625
  15,361
  16,133
  16,944
  17,795
  18,688
  19,626
  20,610
  21,643
  22,728
  23,867
  25,063
  26,319
Fixed operating expenses, $m
 
  883
  905
  927
  950
  974
  998
  1,023
  1,049
  1,075
  1,102
  1,130
  1,158
  1,187
  1,217
  1,247
  1,278
  1,310
  1,343
  1,376
  1,411
  1,446
  1,482
  1,519
  1,557
  1,596
  1,636
  1,677
  1,719
  1,762
  1,806
Total operating expenses, $m
  6,894
  7,252
  7,600
  7,963
  8,344
  8,744
  9,161
  9,599
  10,058
  10,539
  11,042
  11,492
  12,044
  12,624
  13,231
  13,867
  14,535
  15,234
  15,968
  16,737
  17,544
  18,390
  19,277
  20,207
  21,183
  22,206
  23,279
  24,405
  25,586
  26,825
  28,125
Operating income, $m
  1,699
  1,788
  1,909
  2,035
  2,169
  2,309
  2,457
  2,612
  2,776
  2,948
  3,129
  3,399
  3,600
  3,812
  4,034
  4,269
  4,516
  4,776
  5,049
  5,337
  5,640
  5,959
  6,295
  6,648
  7,020
  7,412
  7,823
  8,257
  8,713
  9,192
  9,697
EBITDA, $m
  1,917
  2,050
  2,180
  2,316
  2,460
  2,611
  2,770
  2,938
  3,114
  3,299
  3,495
  3,700
  3,916
  4,144
  4,384
  4,636
  4,901
  5,181
  5,474
  5,784
  6,109
  6,452
  6,812
  7,192
  7,591
  8,011
  8,453
  8,917
  9,406
  9,921
  10,462
Interest expense (income), $m
  64
  74
  85
  97
  109
  122
  136
  150
  165
  181
  197
  215
  233
  252
  272
  293
  315
  338
  362
  388
  414
  443
  472
  503
  535
  570
  605
  643
  682
  724
  767
Earnings before tax, $m
  1,637
  1,715
  1,824
  1,939
  2,060
  2,187
  2,321
  2,462
  2,611
  2,767
  2,932
  3,184
  3,367
  3,560
  3,763
  3,976
  4,201
  4,438
  4,687
  4,949
  5,226
  5,517
  5,823
  6,145
  6,485
  6,842
  7,218
  7,614
  8,030
  8,469
  8,930
Tax expense, $m
  599
  463
  492
  523
  556
  590
  627
  665
  705
  747
  792
  860
  909
  961
  1,016
  1,074
  1,134
  1,198
  1,265
  1,336
  1,411
  1,490
  1,572
  1,659
  1,751
  1,847
  1,949
  2,056
  2,168
  2,287
  2,411
Net income, $m
  1,038
  1,252
  1,331
  1,415
  1,504
  1,596
  1,694
  1,797
  1,906
  2,020
  2,141
  2,325
  2,458
  2,599
  2,747
  2,903
  3,067
  3,240
  3,422
  3,613
  3,815
  4,027
  4,251
  4,486
  4,734
  4,995
  5,269
  5,558
  5,862
  6,182
  6,519

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  147
  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
  7,204
  7,422
  7,806
  8,209
  8,632
  9,075
  9,539
  10,026
  10,537
  11,073
  11,635
  12,225
  12,844
  13,493
  14,175
  14,890
  15,641
  16,429
  17,256
  18,124
  19,035
  19,991
  20,995
  22,049
  23,155
  24,317
  25,536
  26,816
  28,160
  29,571
  31,052
Adjusted assets (=assets-cash), $m
  7,057
  7,422
  7,806
  8,209
  8,632
  9,075
  9,539
  10,026
  10,537
  11,073
  11,635
  12,225
  12,844
  13,493
  14,175
  14,890
  15,641
  16,429
  17,256
  18,124
  19,035
  19,991
  20,995
  22,049
  23,155
  24,317
  25,536
  26,816
  28,160
  29,571
  31,052
Revenue / Adjusted assets
  1.218
  1.218
  1.218
  1.218
  1.218
  1.218
  1.218
  1.218
  1.218
  1.218
  1.218
  1.218
  1.218
  1.218
  1.218
  1.218
  1.218
  1.218
  1.218
  1.218
  1.218
  1.218
  1.218
  1.218
  1.218
  1.218
  1.218
  1.218
  1.218
  1.218
  1.218
Average production assets, $m
  3,004
  3,164
  3,328
  3,500
  3,680
  3,869
  4,067
  4,274
  4,492
  4,720
  4,960
  5,212
  5,475
  5,752
  6,043
  6,348
  6,668
  7,004
  7,356
  7,726
  8,114
  8,522
  8,950
  9,399
  9,871
  10,366
  10,886
  11,432
  12,005
  12,606
  13,238
Working capital, $m
  -143
  -307
  -323
  -340
  -357
  -376
  -395
  -415
  -436
  -459
  -482
  -506
  -532
  -559
  -587
  -617
  -648
  -680
  -715
  -751
  -788
  -828
  -869
  -913
  -959
  -1,007
  -1,057
  -1,111
  -1,166
  -1,225
  -1,286
Total debt, $m
  1,887
  2,173
  2,477
  2,795
  3,129
  3,479
  3,846
  4,231
  4,634
  5,058
  5,502
  5,968
  6,457
  6,970
  7,508
  8,073
  8,666
  9,289
  9,942
  10,628
  11,347
  12,103
  12,896
  13,729
  14,603
  15,520
  16,483
  17,495
  18,556
  19,671
  20,841
Total liabilities, $m
  5,577
  5,863
  6,167
  6,485
  6,819
  7,169
  7,536
  7,921
  8,324
  8,748
  9,192
  9,658
  10,147
  10,660
  11,198
  11,763
  12,356
  12,979
  13,632
  14,318
  15,037
  15,793
  16,586
  17,419
  18,293
  19,210
  20,173
  21,185
  22,246
  23,361
  24,531
Total equity, $m
  1,627
  1,559
  1,639
  1,724
  1,813
  1,906
  2,003
  2,105
  2,213
  2,325
  2,443
  2,567
  2,697
  2,834
  2,977
  3,127
  3,285
  3,450
  3,624
  3,806
  3,997
  4,198
  4,409
  4,630
  4,863
  5,107
  5,363
  5,631
  5,914
  6,210
  6,521
Total liabilities and equity, $m
  7,204
  7,422
  7,806
  8,209
  8,632
  9,075
  9,539
  10,026
  10,537
  11,073
  11,635
  12,225
  12,844
  13,494
  14,175
  14,890
  15,641
  16,429
  17,256
  18,124
  19,034
  19,991
  20,995
  22,049
  23,156
  24,317
  25,536
  26,816
  28,160
  29,571
  31,052
Debt-to-equity ratio
  1.160
  1.390
  1.510
  1.620
  1.730
  1.830
  1.920
  2.010
  2.090
  2.180
  2.250
  2.320
  2.390
  2.460
  2.520
  2.580
  2.640
  2.690
  2.740
  2.790
  2.840
  2.880
  2.920
  2.960
  3.000
  3.040
  3.070
  3.110
  3.140
  3.170
  3.200
Adjusted equity ratio
  0.210
  0.210
  0.210
  0.210
  0.210
  0.210
  0.210
  0.210
  0.210
  0.210
  0.210
  0.210
  0.210
  0.210
  0.210
  0.210
  0.210
  0.210
  0.210
  0.210
  0.210
  0.210
  0.210
  0.210
  0.210
  0.210
  0.210
  0.210
  0.210
  0.210
  0.210

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  1,038
  1,252
  1,331
  1,415
  1,504
  1,596
  1,694
  1,797
  1,906
  2,020
  2,141
  2,325
  2,458
  2,599
  2,747
  2,903
  3,067
  3,240
  3,422
  3,613
  3,815
  4,027
  4,251
  4,486
  4,734
  4,995
  5,269
  5,558
  5,862
  6,182
  6,519
Depreciation, amort., depletion, $m
  218
  261
  271
  281
  291
  302
  314
  326
  338
  351
  365
  301
  316
  333
  349
  367
  385
  405
  425
  447
  469
  493
  517
  543
  571
  599
  629
  661
  694
  729
  765
Funds from operations, $m
  1,670
  1,513
  1,602
  1,696
  1,795
  1,899
  2,008
  2,123
  2,244
  2,372
  2,506
  2,626
  2,775
  2,931
  3,096
  3,269
  3,452
  3,644
  3,847
  4,060
  4,284
  4,520
  4,768
  5,029
  5,305
  5,594
  5,898
  6,219
  6,556
  6,911
  7,284
Change in working capital, $m
  216
  -15
  -16
  -17
  -17
  -18
  -19
  -20
  -21
  -22
  -23
  -24
  -26
  -27
  -28
  -30
  -31
  -33
  -34
  -36
  -38
  -40
  -42
  -44
  -46
  -48
  -50
  -53
  -56
  -58
  -61
Cash from operations, $m
  1,454
  1,528
  1,618
  1,713
  1,812
  1,917
  2,027
  2,143
  2,265
  2,394
  2,529
  2,650
  2,800
  2,958
  3,124
  3,299
  3,483
  3,677
  3,881
  4,096
  4,322
  4,559
  4,810
  5,073
  5,350
  5,642
  5,949
  6,272
  6,612
  6,969
  7,345
Maintenance CAPEX, $m
  0
  -174
  -183
  -192
  -202
  -213
  -224
  -235
  -247
  -260
  -273
  -287
  -301
  -316
  -333
  -349
  -367
  -385
  -405
  -425
  -447
  -469
  -493
  -517
  -543
  -571
  -599
  -629
  -661
  -694
  -729
New CAPEX, $m
  -476
  -160
  -164
  -172
  -180
  -189
  -198
  -208
  -218
  -228
  -240
  -251
  -264
  -277
  -291
  -305
  -320
  -336
  -353
  -370
  -388
  -408
  -428
  -449
  -472
  -495
  -520
  -546
  -573
  -601
  -631
Cash from investing activities, $m
  -529
  -334
  -347
  -364
  -382
  -402
  -422
  -443
  -465
  -488
  -513
  -538
  -565
  -593
  -624
  -654
  -687
  -721
  -758
  -795
  -835
  -877
  -921
  -966
  -1,015
  -1,066
  -1,119
  -1,175
  -1,234
  -1,295
  -1,360
Free cash flow, $m
  925
  1,194
  1,271
  1,349
  1,430
  1,515
  1,605
  1,700
  1,800
  1,906
  2,016
  2,112
  2,235
  2,365
  2,501
  2,645
  2,796
  2,956
  3,124
  3,300
  3,487
  3,683
  3,889
  4,107
  4,335
  4,576
  4,830
  5,097
  5,378
  5,674
  5,985
Issuance/(repayment) of debt, $m
  499
  286
  304
  318
  334
  350
  367
  385
  404
  423
  444
  466
  489
  513
  538
  565
  593
  622
  653
  686
  720
  756
  793
  833
  874
  918
  963
  1,011
  1,062
  1,115
  1,170
Issuance/(repurchase) of shares, $m
  -1,446
  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  
  -895
  286
  304
  318
  334
  350
  367
  385
  404
  423
  444
  466
  489
  513
  538
  565
  593
  622
  653
  686
  720
  756
  793
  833
  874
  918
  963
  1,011
  1,062
  1,115
  1,170
Total cash flow (excl. dividends), $m
  30
  1,481
  1,575
  1,667
  1,764
  1,865
  1,972
  2,085
  2,204
  2,329
  2,461
  2,578
  2,724
  2,878
  3,040
  3,210
  3,389
  3,578
  3,777
  3,986
  4,206
  4,438
  4,682
  4,939
  5,209
  5,494
  5,793
  6,108
  6,440
  6,788
  7,155
Retained Cash Flow (-), $m
  334
  -79
  -81
  -85
  -89
  -93
  -98
  -102
  -107
  -113
  -118
  -124
  -130
  -136
  -143
  -150
  -158
  -165
  -174
  -182
  -191
  -201
  -211
  -221
  -232
  -244
  -256
  -269
  -282
  -296
  -311
Prev. year cash balance distribution, $m
 
  147
  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
 
  1,549
  1,494
  1,582
  1,675
  1,772
  1,875
  1,983
  2,097
  2,216
  2,343
  2,454
  2,594
  2,741
  2,896
  3,060
  3,232
  3,413
  3,603
  3,804
  4,015
  4,237
  4,471
  4,718
  4,977
  5,250
  5,537
  5,839
  6,157
  6,492
  6,844
Discount rate, %
 
  4.80
  5.04
  5.29
  5.56
  5.83
  6.13
  6.43
  6.75
  7.09
  7.45
  7.82
  8.21
  8.62
  9.05
  9.50
  9.98
  10.48
  11.00
  11.55
  12.13
  12.74
  13.37
  14.04
  14.74
  15.48
  16.25
  17.07
  17.92
  18.82
  19.76
PV of cash for distribution, $m
 
  1,478
  1,354
  1,356
  1,349
  1,335
  1,312
  1,282
  1,243
  1,196
  1,142
  1,072
  1,006
  936
  861
  784
  705
  627
  551
  477
  407
  342
  283
  230
  183
  144
  110
  83
  61
  44
  31
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

O'Reilly Automotive, Inc. is a specialty retailer of automotive aftermarket parts, tools, supplies, equipment and accessories in the United States. The Company sells its products to both do-it-yourself (DIY) and professional service provider customers. The Company's product line includes new and remanufactured automotive hard parts, such as alternators, starters, fuel pumps, water pumps, brake system components, batteries, belts, hoses, temperature control, chassis parts, driveline parts and engine parts; maintenance items, such as oil, antifreeze, fluids, filters, wiper blades, lighting, engine additives and appearance products, and accessories, such as floor mats, seat covers and truck accessories. The Company's stores offer various services and programs to its customers, such as used oil, oil filter and battery recycling; battery diagnostic testing; electrical and module testing; check engine light code extraction; loaner tool program; custom hydraulic hoses, and machine shops.

FINANCIAL RATIOS  of  O'Reilly Automotive (ORLY)

Valuation Ratios
P/E Ratio 18.8
Price to Sales 2.3
Price to Book 12
Price to Tangible Book
Price to Cash Flow 13.4
Price to Free Cash Flow 19.9
Growth Rates
Sales Growth Rate 7.9%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 15%
Cap. Spend. - 3 Yr. Gr. Rate 3.7%
Financial Strength
Quick Ratio NaN
Current Ratio 0
LT Debt to Equity 116%
Total Debt to Equity 116%
Interest Coverage 27
Management Effectiveness
Return On Assets 15.5%
Ret/ On Assets - 3 Yr. Avg. 14.3%
Return On Total Capital 30.2%
Ret/ On T. Cap. - 3 Yr. Avg. 26.9%
Return On Equity 57.9%
Return On Equity - 3 Yr. Avg. 47.9%
Asset Turnover 1.2
Profitability Ratios
Gross Margin 52.5%
Gross Margin - 3 Yr. Avg. 52%
EBITDA Margin 22.3%
EBITDA Margin - 3 Yr. Avg. 21.4%
Operating Margin 19.8%
Oper. Margin - 3 Yr. Avg. 18.8%
Pre-Tax Margin 19.1%
Pre-Tax Margin - 3 Yr. Avg. 18.1%
Net Profit Margin 12.1%
Net Profit Margin - 3 Yr. Avg. 11.5%
Effective Tax Rate 36.6%
Eff/ Tax Rate - 3 Yr. Avg. 36.4%
Payout Ratio 0%

ORLY stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the ORLY stock intrinsic value calculation we used $8593 million for the last fiscal year's total revenue generated by O'Reilly Automotive. The default revenue input number comes from 2016 income statement of O'Reilly Automotive. 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 ORLY stock valuation model: a) initial revenue growth rate of 5.2% 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 4.8%, whose default value for ORLY is calculated based on our internal credit rating of O'Reilly Automotive, 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 O'Reilly Automotive.
    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 ORLY stock the variable cost ratio is equal to 70.5%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $861 million in the base year in the intrinsic value calculation for ORLY 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 3.9% for O'Reilly Automotive.

Corporate tax rate of 27% is the nominal tax rate for O'Reilly Automotive. 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 ORLY 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 ORLY are equal to 35%.

Life of production assets of 17.3 years is the average useful life of capital assets used in O'Reilly Automotive 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 ORLY is equal to -3.4%. 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 - $1627 million for O'Reilly Automotive - 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 90.617 million for O'Reilly Automotive 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 O'Reilly Automotive at the current share price and the inputted number of shares is $19.0 billion.

RELATED COMPANIES Price Int.Val. Rating
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LKQ LKQ 35.35 26.15  sell
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Financial statements of ORLY
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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