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O'Reilly Automotive (LTS:0KAB) Cyclically Adjusted PB Ratio Explanation
Compared with the regular PB Ratio, which works poorly for cyclical businesses, the Cyclically Adjusted PB Ratio smoothed out the fluctuations of book value during business cycles. Therefore it is more accurate in reflecting the valuation of the company.
If a company has consistent business performance, the Cyclically Adjusted PB Ratio should give similar results to regular PB Ratio.
O'Reilly Automotive Cyclically Adjusted PB Ratio Related Terms
O'Reilly Automotive Cyclically Adjusted PB Ratio Historical Data
* Premium members only.
The historical data trend for O'Reilly Automotive's Cyclically Adjusted PB Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
O'Reilly Automotive Cyclically Adjusted PB Ratio Chart
LTS:0KAB vs AZO, GPC, BWA: Cyclically Adjusted PB Ratio Comparison
For the Auto Parts subindustry, O'Reilly Automotive's Cyclically Adjusted PB Ratio, along with its competitors' market caps and Cyclically Adjusted PB Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
O'Reilly Automotive Cyclically Adjusted PB Ratio vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, O'Reilly Automotive's Cyclically Adjusted PB Ratio distribution charts can be found below:
* The bar in red indicates where O'Reilly Automotive's Cyclically Adjusted PB Ratio falls into.
O'Reilly Automotive Cyclically Adjusted PB Ratio Calculation
Like the Shiller PE Ratio, the Cyclically Adjusted PB Ratio takes the Book Value per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/B calculation. Because it considers this 10-year average, it's often referred to as the CAPB Ratio.
The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PB Ratio.
Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.
Is O'Reilly Automotive (LTS:0KAB) Overvalued in 2026?
Based on GuruFocus' analysis, O'Reilly Automotive stock appears to be undervalued.
The current stock price of $88.04 is trading 9.6% below its estimated GF Value™ of $97.37.
GuruFocus considers O'Reilly Automotive to be Fairly Valued.
Key valuation signals for LTS:0KAB:
Cyclically Adjusted PB Ratio:
GF Value™: $97.37 vs. price of $88.04 (9.6% below fair value)
No single metric tells the full story. See the LTS:0KAB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Founded in 1957, O'Reilly Auto Parts is one of the largest specialty retailers of automotive aftermarket parts, tools, supplies, equipment, and accessories, serving both DIY and professional customers. The company operates nearly 6,600 stores across 48 US states, Puerto Rico, Mexico, and Canada. In fiscal 2025, O'Reilly generated nearly $18 billion in sales, with its dual market strategy yielding a balanced revenue mix, split between retail DIY customers (49%) and professional service orders (49%). The balance of its sales is derived from noncore categories, including wholesale distribution to independent parts distributors, heavy-shop equipment sales, and value-added services.
92GF Score
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Cyclically Adjusted PB Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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