|AutoNation -- USA Stock|| |
USD 45.87 0.12 0.26%
shows prevailing Real Value
of $50.34375 per share. The current price of the firm is $45.87. At this time the firm appears to be under valued
. Macroaxis approximates value of AutoNation
from analyzing the firm fundamentals
such as Current Valuation
of 10.68B, Return On Equity
of 18.59% and Profit Margin of 2.02% 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 see the company’s third quarter numbers for 2016. The stand-alone pre-owned vehicle sales and service centers is the next phase of the company’s retail brand strategy. Net income from continuing operations for the third quarter of 2016 was $108 million, compared to net income from continuing operations of $119 million from the same period in the prior year. Income has slowed down but they are still going along with the next phase of their plan.
Switching gears to the chart, we can see that price has increased nicely from the lows of 2008. Currently, price is off the highs and has retraced slightly, which is a good sign because people are selling taking profits off the table. Now would be a solid time to look for entry possibilities if you think the stock has retraced enough. Be sure to complete detailed research and analysis, and not just focus on a chart.
Valuation Drivers Correlation
Net Income Per Employee Enterprise Value Market Capitalization
Selected AutoNation Valuation Data Over Time
AutoNation is rated below average
in price to earning category among related companies. It is rated below average
in beta category among related companies totaling about 0.15
of Beta per Price to Earning. The ratio of Price to Earning to Beta for AutoNation is roughly 6.69
April 25, 2018
AutoNation is not too risky
asset. Calculation of real value of AutoNation is based on 2 months time horizon. Increasing AutoNation time horizon generally increases accuracy of value calculation and significantly improves predictive power of the methodology used.
AutoNation is rated fourth
in market capitalization category among related companies. Market capitalization
of Vehicle Sales And Repair
industry is presently estimated at about 34.39 Billion. AutoNation retains roughly 4.18 Billion in market capitalization claiming about 12% of Vehicle Sales And Repair industry.