AutoNation Enterprise Value vs Invested Capital Analysis
AN Stock | USD 154.57 0.43 0.28% |
AutoNation financial indicator trend analysis is way more than just evaluating AutoNation prevailing accounting drivers to predict future trends. We encourage investors to analyze account correlations over time for multiple indicators to determine whether AutoNation is a good investment. Please check the relationship between AutoNation Enterprise Value and its Invested Capital accounts. Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in AutoNation. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in board of governors. To learn how to invest in AutoNation Stock, please use our How to Invest in AutoNation guide.
Enterprise Value vs Invested Capital
Enterprise Value vs Invested Capital Correlation Analysis
The overlapping area represents the amount of trend that can be explained by analyzing historical patterns of AutoNation Enterprise Value account and Invested Capital. At this time, the significance of the direction appears to have strong relationship.
The correlation between AutoNation's Enterprise Value and Invested Capital is 0.63. Overlapping area represents the amount of variation of Enterprise Value that can explain the historical movement of Invested Capital in the same time period over historical financial statements of AutoNation, assuming nothing else is changed. The correlation between historical values of AutoNation's Enterprise Value and Invested Capital is a relative statistical measure of the degree to which these accounts tend to move together. The correlation coefficient measures the extent to which Enterprise Value of AutoNation are associated (or correlated) with its Invested Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when Invested Capital has no effect on the direction of Enterprise Value i.e., AutoNation's Enterprise Value and Invested Capital go up and down completely randomly.
Correlation Coefficient | 0.63 |
Relationship Direction | Positive |
Relationship Strength | Significant |
Enterprise Value
Enterprise Value (or EV) is usually referred to as AutoNation theoretical takeover price. In the event of an acquisition, an acquirer would have to take on AutoNation debt, but would also pocket its cash. Enterprise Value is more accurate representation of AutoNation value than its market capitalization because it takes into account all of AutoNation existing debt. A measure of a company's total value, often used as a more comprehensive alternative to equity market capitalization that includes the market capitalization, plus total debt, minority interest and preferred shares, minus total cash and cash equivalents.Invested Capital
Invested capital represents the total cash investment that shareholders and debt holders have contributed to AutoNation. There are two different methods for calculating AutoNation invested capital: operating approach and financing approach. Understanding AutoNation invested capital allows investors to calculate measures of performance such as return on invested capital or return on capital employed.Most indicators from AutoNation's fundamental ratios are interrelated and interconnected. However, analyzing fundamental ratios indicators one by one will only give a small insight into AutoNation current financial condition. On the other hand, looking into the entire matrix of fundamental ratios indicators, and analyzing their relationships over time can provide a more complete picture of the company financial strength now and in the future. Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in AutoNation. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in board of governors. To learn how to invest in AutoNation Stock, please use our How to Invest in AutoNation guide.At this time, AutoNation's Enterprise Value Over EBITDA is very stable compared to the past year. As of the 22nd of April 2024, Enterprise Value Multiple is likely to grow to 11.44, while Selling General Administrative is likely to drop about 1.8 B.
2021 | 2022 | 2023 | 2024 (projected) | EBITDA | 2.1B | 2.2B | 1.7B | 867.6M | EBIT | 1.9B | 2.0B | 1.5B | 1.6B |
AutoNation fundamental ratios Correlations
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AutoNation Account Relationship Matchups
High Positive Relationship
High Negative Relationship
AutoNation fundamental ratios Accounts
2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
Total Assets | 10.5B | 9.9B | 8.9B | 10.1B | 12.4B | 7.6B | |
Other Current Liab | 608.7M | 497.4M | 536.4M | 814.2M | 860.5M | 643.2M | |
Total Current Liabilities | 5.1B | 4.2B | 3.1B | 3.4B | 5.6B | 3.2B | |
Total Stockholder Equity | 3.2B | 3.2B | 2.4B | 2.0B | 2.2B | 2.6B | |
Property Plant And Equipment Net | 3.5B | 3.4B | 3.7B | 3.9B | 4.2B | 4.4B | |
Net Debt | 6.0B | 4.6B | 4.9B | 6.3B | 4.6B | 3.0B | |
Retained Earnings | 3.7B | 4.1B | 4.6B | 3.7B | 4.6B | 4.9B | |
Cash | 42M | 569.6M | 60.4M | 72.6M | 75.1M | 131.5M | |
Non Current Assets Total | 6.1B | 5.7B | 6.1B | 6.9B | 8.0B | 4.2B | |
Non Currrent Assets Other | 382.1M | 580.4M | 449.6M | 438.5M | 688.3M | 722.7M | |
Cash And Short Term Investments | 42M | 569.6M | 60.4M | 72.6M | 75.1M | 131.5M | |
Net Receivables | 916.7M | 845.2M | 730M | 858.8M | 1.1B | 710.0M | |
Common Stock Shares Outstanding | 90.5M | 88.7M | 75M | 56.7M | 44.9M | 42.7M | |
Liabilities And Stockholders Equity | 10.5B | 9.9B | 8.9B | 10.1B | 12.4B | 7.6B | |
Other Stockholder Equity | (527.2M) | (834.7M) | (2.3B) | (1.6B) | (2.4B) | (2.3B) | |
Total Liab | 7.4B | 6.7B | 6.6B | 8.0B | 10.1B | 10.7B | |
Property Plant And Equipment Gross | 3.5B | 3.4B | 5.5B | 5.9B | 6.3B | 6.6B | |
Total Current Assets | 4.4B | 4.2B | 2.8B | 3.1B | 4.3B | 3.4B | |
Other Current Assets | 146.6M | 139.4M | 173.4M | 158.3M | 134.9M | 128.2M | |
Short Long Term Debt Total | 6.1B | 5.2B | 5.0B | 6.4B | 4.7B | 3.4B | |
Non Current Liabilities Total | 2.3B | 2.5B | 3.5B | 4.6B | 4.6B | 4.8B | |
Short Term Debt | 4.2B | 3.1B | 1.8B | 2.2B | 952.4M | 1.9B | |
Intangible Assets | 581.6M | 521.5M | 743.5M | 837M | 927.8M | 780.3M | |
Accounts Payable | 290.3M | 335.2M | 395.9M | 327.6M | 3.7B | 3.9B | |
Inventory | 3.3B | 2.6B | 1.8B | 2.0B | 3.0B | 2.6B | |
Other Liab | 397.5M | 406.5M | 400.5M | 409.5M | 470.9M | 243.2M | |
Other Assets | 541M | 891M | 390.7M | 522.2M | 600.5M | 346.7M | |
Long Term Debt | 1.6B | 1.8B | 2.8B | 312.9M | 3.4B | 3.5B | |
Treasury Stock | (563.1M) | (887.8M) | (2.3B) | (1.6B) | (1.5B) | (1.4B) | |
Property Plant Equipment | 3.2B | 3.1B | 3.4B | 3.6B | 4.1B | 2.5B | |
Good Will | 1.5B | 1.2B | 1.2B | 1.3B | 1.5B | 1.5B | |
Net Tangible Assets | 1.4B | 1.8B | 658.3M | 500.5M | 450.5M | 427.9M | |
Retained Earnings Total Equity | 3.7B | 4.1B | 4.6B | 3.7B | 4.2B | 3.6B | |
Long Term Debt Total | 1.6B | 1.8B | 2.8B | 3.6B | 4.1B | 2.2B | |
Capital Surpluse | 35.9M | 53.1M | 3.2M | 3.1M | 2.8M | 2.7M | |
Deferred Long Term Liab | 135.1M | 95.9M | 78.2M | 76.5M | 88.0M | 97.3M |
AutoNation Investors Sentiment
The influence of AutoNation's investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in AutoNation. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock market does not have solid backing from leading economists and market statisticians.
Investor biases related to AutoNation's public news can be used to forecast risks associated with an investment in AutoNation. The trend in average sentiment can be used to explain how an investor holding AutoNation can time the market purely based on public headlines and social activities around AutoNation. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
AutoNation's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for AutoNation's and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average AutoNation's news discussions. The higher the estimated score, the more favorable is the investor's outlook on AutoNation.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards AutoNation in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, AutoNation's short interest history, or implied volatility extrapolated from AutoNation options trading.
Pair Trading with AutoNation
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if AutoNation position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in AutoNation will appreciate offsetting losses from the drop in the long position's value.Moving against AutoNation Stock
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The ability to find closely correlated positions to AutoNation could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace AutoNation when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back AutoNation - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling AutoNation to buy it.
The correlation of AutoNation is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as AutoNation moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if AutoNation moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for AutoNation can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in AutoNation. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in board of governors. To learn how to invest in AutoNation Stock, please use our How to Invest in AutoNation guide.You can also try the Money Managers module to screen money managers from public funds and ETFs managed around the world.
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Is AutoNation's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of AutoNation. If investors know AutoNation will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about AutoNation listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.12) | Earnings Share 22.72 | Revenue Per Share 604.235 | Quarterly Revenue Growth 0.011 | Return On Assets 0.0937 |
The market value of AutoNation is measured differently than its book value, which is the value of AutoNation that is recorded on the company's balance sheet. Investors also form their own opinion of AutoNation's value that differs from its market value or its book value, called intrinsic value, which is AutoNation's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because AutoNation's market value can be influenced by many factors that don't directly affect AutoNation's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between AutoNation's value and its price as these two are different measures arrived at by different means. Investors typically determine if AutoNation is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, AutoNation's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.