Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company. The details of how we calculate the intrinsic value of stocks are described in detail here.
As of today (2024-04-19), Advance Auto Parts's Intrinsic Value: Projected FCF is $120.91. The stock price of Advance Auto Parts is $78.69. Therefore, Advance Auto Parts's Price-to-Intrinsic-Value-Projected-FCF of today is 0.7.
The historical rank and industry rank for Advance Auto Parts's Intrinsic Value: Projected FCF or its related term are showing as below:
AAP'
s Price-to-Projected-FCF Range Over the Past 10 Years
Min: 0.5 Med: 1.43 Max: 1.92
Current: 0.65
During the past 13 years, the highest Price-to-Intrinsic-Value-Projected-FCF of Advance Auto Parts was 1.92. The lowest was 0.50. And the median was 1.43.
AAP's Price-to-Projected-FCF is ranked better than 58.97% of 719
companies
in the Retail - Cyclical industry
Industry Median: 0.79
vs AAP: 0.65
Advance Auto Parts Intrinsic Value: Projected FCF Historical Data
The historical data trend for Advance Auto Parts's Intrinsic Value: Projected FCF 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.
For the Specialty Retail subindustry, Advance Auto Parts's Price-to-Projected-FCF, along with its competitors' market caps and Price-to-Projected-FCF 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.
Advance Auto Parts Price-to-Projected-FCF Distribution
For the Retail - Cyclical industry and Consumer Cyclical sector, Advance Auto Parts's Price-to-Projected-FCF distribution charts can be found below:
* The bar in red indicates where Advance Auto Parts's Price-to-Projected-FCF falls into.
Advance Auto Parts Intrinsic Value: Projected FCF Calculation
Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company.
The details of how we calculate the intrinsic value of stocks are described in detail here.
This method smooths out the free cash flow over the past 6-7 years, multiplies the results by a growth multiple, and adds a portion of Total Stockholders Equity.
* 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.
Advance Auto Parts (NYSE:AAP) Intrinsic Value: Projected FCF Explanation
The growth multiple is capped between 8.35 and 17.74.
Total Stockholders Equity weighting is more art than science and it should always be revisited in more detail when researching a company. Weightings from 0% to 100% to more than 100% are possible. 80% was chosen as a happy median after taking the above ideas into consideration.
Advance Auto Parts's Price-to-Intrinsic-Value-Projected-FCF for today is calculated as
Price-to-Intrinsic-Value-Projected-FCF
=
Share Price
/
Intrinsic Value: Projected FCF
=
78.69
/
120.90869685588
=
0.65
* 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.
Advance Auto Parts Intrinsic Value: Projected FCF Related Terms
Thank you for viewing the detailed overview of Advance Auto Parts's Intrinsic Value: Projected FCF provided by GuruFocus.com. Please click on the following links to see related term pages.
Advance Auto Parts (Advance Auto Parts) Business Description
Advance Auto Parts is one of the industry's largest retailers of aftermarket automotive parts, tools, and accessories to do-it-yourself customers and third-party vehicle repair facilities in North America. Advance operated 5,086 stores as of the end of 2022, in addition to servicing 1,311 independently owned Carquest stores. The company's Worldpac chain is a premier distributor of imported original-equipment parts. Advance derived 59% of its 2022 sales from commercial clients, with the remainder from DIY shoppers.
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