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The 3-Year Sortino Ratio measures the additional return that an investor receives per unit of the downside risk over the past three years. As of today (2026-09-05), Advance Auto Parts's 3-Year Sortino Ratio is 0.02.
Advance Auto Parts (NYSE:AAP) 3-Year Sortino Ratio Explanation
The 3-Year Sortino Ratio inidicates the risk-adjusted return of an investment over the past three year. It is calculated as the annualized result of the average three-year monthly excess returns divided by the standard deviation of negative returns in the three-year period. The monthly excess return is the monthly investment return minus the monthly risk-free rate (typically the 10-year Treasury Constant Maturity Rate). If the risk-free rate for a specific region is not available, U.S. data is used by default.
Differnt from the Sharpe Ratio that penalizes both upside and downside volatility equally, the Sortino Ratio penalizes only those returns falling below a user-specified target or required rate of return. The expected returns here is set to the risk-free rate as well.
Advance Auto Parts 3-Year Sortino Ratio Related Terms
AAP vs PHIN, VC, HSAI: 3-Year Sortino Ratio Comparison
For the Auto Parts subindustry, Advance Auto Parts's 3-Year Sortino Ratio, along with its competitors' market caps and 3-Year Sortino 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.
Advance Auto Parts 3-Year Sortino Ratio vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Advance Auto Parts's 3-Year Sortino Ratio distribution charts can be found below:
* The bar in red indicates where Advance Auto Parts's 3-Year Sortino Ratio falls into.
Advance Auto Parts 3-Year Sortino Ratio Calculation
The 3-Year Sortino Ratio measures the risk-adjusted return of an investment asset or portfolio in the last three year, focusing specifically on downside risk rather than total risk. A stock / portfolio's 3-Year Sortino Ratio can be calculated by dividing the difference between the three-year average monthly returns of the investment and the risk-free rate, by the standard deviation of the downside risks over the past three year.
A downside risk is a potential loss from the asset or investment. The Downside risk here is measured by the downside deviation, which is the standard deviation of negative returns.
Advance Auto Parts (AAP) has a 3-Year Sortino Ratio of 0.02 as of Sep. 05, 2026. 3-Year Sortino Ratio measures the additional return that an investor receives per unit of the downside risk over the past three years. View historical data for Advance Auto Parts and its competitors.
Is Advance Auto Parts' 3-Year Sortino Ratio too high?
Advance Auto Parts' current 3-Year Sortino Ratio is 0.02. Overall, Advance Auto Parts has a GF Score™ of 72/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Advance Auto Parts' 3-Year Sortino Ratio compare to PHIN and VC?
Advance Auto Parts' 3-Year Sortino Ratio of 0.02 can be compared against companies in the Vehicles & Parts industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year Sortino Ratio for a Vehicles & Parts company?
A good 3-Year Sortino Ratio depends on the Vehicles & Parts industry context. However, 3-Year Sortino Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 3-Year Sortino Ratio mean?
A high 3-Year Sortino Ratio can signal that a stock is expensive relative to its fundamentals. 3-Year Sortino Ratio measures the additional return that an investor receives per unit of the downside risk over the past three years. View historical data for Advance Auto Parts and its competitors. Advance Auto Parts's current 3-Year Sortino Ratio is 0.02. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Advance Auto Parts stock overvalued right now?
Based on GuruFocus' analysis, Advance Auto Parts (AAP) is currently considered Modestly Undervalued. The stock's GF Value™ is $51.87, compared to a current price of $44.18 — trading 14.8% below its estimated fair value. The current 3-Year Sortino Ratio is 0.02. Advance Auto Parts' overall GF Score™ is 72/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year Sortino Ratio calculated?
3-Year Sortino Ratio is calculated from a company's financial statements. For Advance Auto Parts (AAP), the current 3-Year Sortino Ratio is 0.02 as of Sep. 05, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Advance Auto Parts (AAP) Overvalued in 2026?
Based on GuruFocus' analysis, Advance Auto Parts stock appears to be undervalued.
The current stock price of $44.18 is trading 14.8% below its estimated GF Value™ of $51.87.
GuruFocus considers Advance Auto Parts to be Modestly Undervalued.
Key valuation signals for AAP:
3-Year Sortino Ratio: 0.02
GF Value™: $51.87 vs. price of $44.18 (14.8% below fair value)
No single metric tells the full story. See the AAP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Advance Auto Parts is a leading auto-parts retailer in North America with more than 4,000 store and branch locations. About half of the firm's sales are geared toward the professional channel, with the remaining sales in the do-it-yourself market. Through its vast store footprint and distribution network, Advance manages thousands of stock-keeping units for various vehicle makes and models. The retailer primarily competes on inventory availability and service speed, making the operating efficiency of its hub-and-spoke distribution model critical to meeting customer needs.
72GF Score
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