Advance Auto Valuation Overview

AAP -- USA Stock  

USD 167.83  0.90  0.54%

Advance Auto Parts shows prevailing Real Value of $172.122 per share. The current price of the firm is $167.83. At this time the firm appears to be fairly valued. Macroaxis approximates value of Advance Auto Parts from analyzing the firm fundamentals such as Current Valuation of 12.62B, Return On Equity of 15.77% and Profit Margin of 5.68% as well as examining its technical indicators and Probability Of Bankruptcy. In general, we favor to go long with undervalued instruments and to trade away overvalued instruments since at some point assets prices and their ongoing real values will blend.

Taking a look at a recent 8-K filing, we can get a general idea of how the company is doing fundamentally and use that with technical analysis to formulate a starting opinion. These numbers are for the third quarter of 2016. Total sales for the third quarter decreased 2.0% to $2.25 billion as compared with total sales during the third quarter of fiscal 2015 of $2.30 billion. The company’s gross profit rate was 43.9% of sales during the third quarter as compare to 45.0% during the third quarter last year. Overall, the numbers appear to be stable, but let us take a look at the chart and see if price agrees.

The chart is currently on an up tick, after confirming there is a support area around the $140 mark. This is important for investors because this is where other investors agree that price is good enough to buy. Also, be sure to keep up with the news because many people trade on news reports. Right now I would let this ride a little bit and see if it breaks back into the all time high mark. The chart looks good and there or no red flags stopping me from saying this chart is solid.

Valuation Drivers Correlation
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Advance Auto Parts Valuation Data Drivers
Net Income Per Employee    Enterprise Value    Market Capitalization    
Advance Auto Market Cap
Advance Auto Parts is rated fourth in market capitalization category among related companies. Market capitalization of Specialty Retail industry is presently estimated at about 92.73 Billion. Advance Auto retains roughly 12.4 Billion in market capitalization claiming about 13% of equities listed under Specialty Retail industry.
Capitalization  Workforce  Valuation  Total debt  Revenue
Horizon     30 Days    Login   to change
Advance Auto Parts is rated below average in price to earning category among related companies. It is rated below average in price to sales category among related companies fabricating about  0.06  of Price to Sales per Price to Earning. The ratio of Price to Earning to Price to Sales for Advance Auto Parts is roughly  17.55 

Current Market Valuation

Advance Auto Parts Valuation Boundaries

Fairly Valued
October 16, 2018
167.83
Market Value
Downside
167.47
172.12
Real Value
Target Odds
  
176.77
Upside
Advance Auto is not too risky asset. Calculation of real value of Advance Auto Parts is based on 1 month time horizon. Increasing Advance Auto Parts time horizon generally increases accuracy of value calculation and significantly improves predictive power of the methodology used.

Valuation Basics

Advance Auto Enterprise Value Fundamentals

Quick Ratio0.44
Earnings Quarterly Growth35.40%
Revenue Growth2.80%
Payout Ratio3.32%
Enterprise Value To Ebitda13.53
Earnings Growth35.90%
Enterprise Value To Revenue1.34
Check also Trending Equities. Please also try Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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